S.L. 370.19 Art. 21Right of feeder UCITS to request repurchase and redemption of units.

(1) In the cases referred to in paragraphs of regulation

19(1)(b) and (c), where the feeder UCITS is a Maltese UCITS it shall exercise the right to request repurchase and redemption of units in the master UCITS in accordance with the requirements of regulations 12(1) and 18(1), where the competent authority has not granted the necessary approvals required pursuant to regulation 19 by the working day preceding the last day on which such feeder UCITS can request repurchase and redemption of its units in the master UCITS before the merger or division is effected. In addition, the feeder UCITS shall also exercise such right in order to ensure that the right of its own unit-holders to request repurchase or redemption of their units in the feeder UCITS in terms of the applicable Investment Services Rules is not affected.

(2) A feeder UCITS shall, prior to exercising the right referred to in sub-regulation (1) hereof, consider available alternative solutions which may help to avoid or reduce transaction costs or other negative impacts for its own unit-holders.

(3) Where the feeder UCITS requests repurchase or redemption of its units in the master UCITS, it shall receive one of the following:

(a) the repurchase or redemption proceeds in cash;

(b) some or all of the repurchase or redemption proceeds as a transfer in kind where the feeder UCITS so wishes and where the agreement between the feeder UCITS and the master UCITS provides for it:

Provided that, where paragraph (b) applies, the feeder UCITS may realize any part of the transferred assets for cash at any time.

(4) Where the feeder UCITS is a Maltese UCITS, the competent authority shall grant its approval in terms of regulation 18 on condition that any cash held or received in accordance with sub-regulation (3) may be re-invested only for the purpose of efficient cash management before the date on which such feeder UCITS is to start to invest either in the new master UCITS or in accordance with its new investment objectives and policy. SCHEDULE Amended L.N. (Regulation 11) Information to be provided by Maltese UCITS which are in the process of merging