S.L. 370.19 Art. 18Mergers of master and feeder UCITS.

(1) If a master UCITS merges with another UCITS or is divided into two or more UCITS, the feeder UCITS shall be liquidated, unless, where the feeder UCITS is a Maltese UCITS, the competent authority grants its approval to the feeder UCITS to:

(a) continue to be a feeder UCITS of the master UCITS or another UCITS resulting from the merger or division of the master UCITS;

(b) invest at least eighty-five per cent of its assets in units of another master UCITS not resulting from the merger or the division; or

(c) amend its fund rules or its instruments of incorporation in order to convert into a UCITS which is not a feeder UCITS.

(2) A merger or division of a master UCITS shall not become effective unless the master UCITS has provided all of its unit-holders and the European regulatory authorities of its feeder UCITS, or, where the feeder UCITS is a Maltese UCITS, the competent authority, with the information referred to or comparable with that referred to in regulation 11 up to sixty days prior to the proposed effective date of the merger or division, as the case may be.

(3) Where the feeder UCITS is a Maltese UCITS, unless the competent authority has granted its approval in terms of sub-regulation (1)(a), the master UCITS shall enable the feeder UCITS to repurchase or redeem all units in the master UCITS before the merger or division of the master UCITS becomes effective.