Subsidiaries

  1. The Central Bank may authorise a Retail Investor AIF to wholly own the shares of a limited company which would, in turn, invest in investments which are permitted in Retail Investor AIF chapter for reasons which the Central Bank is satisfied are justified as being in the interests of unitholders. Requirements applicable to subsidiary companies are set out in section 1.xi (Investment through subsidiary companies) of Part I of the Retail Investor AIF chapter.
  2. Prior to establishing a subsidiary for the purpose of making investments, an application for approval must be submitted to the Central Bank.
  3. The application for approval must contain:
    1. the rationale for the establishment of the subsidiary;
    2. the jurisdiction of establishment of the subsidiary;
    3. confirmation from the Retail Investor AIF/Qualifying Investor AIF that it will be valuing the underlying assets of the subsidiary in compliance with the Retail Investor AIF/Qualifying Investor AIF chapters of the AIF Rulebook; and
    4. confirmation from the Retail Investor AIF/Qualifying Investor AIF that the subsidiary has not been established under any investment fund legislation.

Issued: 3 July 2013
Latest revision: 3 July 2013