S.L. 386.2 Art. 9Segregation of assets and liabilities of multi fund companies.

(1) A multi fund company may in its memorandum of association elect to have the assets and liabilities of each sub-fund comprised in that company treated for all intents and purposes of law as a patrimony separate from the assets and liabilities of each other sub-fund of such company. Where a multi fund company makes the election aforementioned the assets and liabilities of each sub-fund of that multi fund company shall, for all intents and purposes of law be deemed to constitute a patrimony separate from the assets and liabilities of each other sub-fund of such a company.

(2) (a) Save for such proportion of the liabilities of a multi fund company which by virtue of the memorandum of association of the company or by virtue of the terms of issue of the shares constituting a sub-fund are, or are to be attributable to, one or more sub-funds in the proportion established therein, the liabilities incurred in respect of each sub-fund shall be paid out of the assets forming part of its patrimony and the creditors in respect thereof shall have no claim or right of action against the other assets of the company, and the following rules shall apply:

(i) proceedings in relation to the company shall respect the legal status of each sub-fund as a patrimony separate from the assets and liabilities of each other sub-fund of the company in terms of this regulation; and

(ii) proceedings under the Act shall apply mutatis mutandis to the sub-fund as though it were a distinct legal entity and with such modifications as are necessary to accommodate the fact that the sub-fund is not a company; and any proceedings in relation to one sub-fund shall not have any effect on the assets of any other sub-fund of the company or of the company itself: Provided that, where a sub-fund which comprises a separate patrimony in accordance with this regulation is being wound up and where a liquidator has been appointed, the liquidator shall carry out his functions in accordance with the provisions of the Act, and accordingly all the powers of the directors and the company secretary in respect solely of that sub-fund shall cease. (iii) Repealed by Legal Notice 293 of 2025.

(b) "Proceedings" in this regulation refers to any proceedings in terms of Title II of Part V and Part VI of the Act.

(3) When a SICAV is established as a multi fund company and elects to have the assets and liabilities of its sub-funds treated as distinct patrimonies, the memorandum shall provide that the actual value of the paid up share capital of any sub-fund shall be at all times equal to the value of the assets of any kind of the particular sub-fund after the deduction of such sub-fund’s liabilities and this in lieu of what is stated in article 84(2)(c)(i) of the Act.

(4) The directors of a multi fund company shall hold or cause to be held such separate records, accounts, statements and other documents as may be necessary to evidence the liabilities and assets of each sub-fund as distinct and separate from the assets and liabilities of other sub-funds in the same company.

(5) These regulations shall have effect with respect to sub-funds of multi fund companies established before the coming into effect of these regulations, from the date of issue of the first shares in the class or classes constituting a sub-fund.