S.L. 386.2 Art. 16Issueofsharesmay be subject to full payment by a settlement date.

(1) Without prejudice to the provisions of article 84 of the

Act, an issue of shares by a SICAV for a cash consideration which is subject to full payment by a settlement date shall be deemed to be a lawful issue of fully paid up shares, provided that the following conditions are satisfied:

(a) the SICAV is authorised to issue shares in such manner by its memorandum or articles of association;

(b) the settlement date and terms of payment are clearly disclosed in the prospectus and any other offering document issued by the SICAV; and

(c) the person acquiring the shares undertakes in writing to pay the full subscription price by not later than the settlement date.

(2) Where payment for the shares is not effected by the settlement date, the SICAV shall forthwith cancel such shares retrospectively as from the date of issue, and the subscriber shall be informed accordingly.

(3) Where the SICAV fails to comply with sub-regulation (2), any member of the SICAV may apply to the court for an order that such shares are to be cancelled.

(4) For the purposes of this regulation the term ‘settlement date’ shall mean the date, as determined by the prospectus or any other offering document issued by the SICAV, by which payment of the full subscription price needs to be received by the SICAV. Such settlement date shall not exceed the number of days that shall be established in terms of Investment Services Rules issued by the competent authority.