CIS 2.8 Guarantees and Capital Protection

This section (CIS 2.8) applies to authorised fund managers and depositaries.1

If there is any arrangement intended to result in a particular capital or income return from a holding of units in an authorised fund, or any investment objective of giving protection to the capital value of, or income return from, such a holding, that arrangement or protection must not be such as to cause the possibility of a conflict of interests as between:

1. (1)

   holders and the authorised fund manager or depositary; or

2. (2)

   holders intended to benefit from the arrangement and holders not intended to benefit from the arrangement.1