2This section applies to:
Where this section refers to a rule or guidance in COLL 5.1 to COLL 5.5 , those rules and guidance, and any rules and guidance to which they refer, must be read as if a reference to a UCITS scheme were a reference to a feeder UCITS.
(for an ICVC) movable and immovable property which is essential for the direct pursuit of the business.
[Note: article 58(2) first subparagraph of the UCITS Directive]
In calculating the global exposure of a feeder UCITS to derivatives and forward transactions in accordance with COLL 5.3.3A R (Cover for investment in derivatives and forward transactions), the feeder UCITS must combine its own direct exposure under COLL 5.8.3R (2) with either:
the master UCITS' potential maximum global exposure to derivatives and forward transactions provided for in the master UCITS' instrument constituting the scheme or its prospectus in proportion to the feeder UCITS investment into the master UCITS.
[Note: article 58(2) second subparagraph of the UCITS Directive]
The scheme property of a feeder UCITS must be invested only in accordance with the relevant provisions in this section and up to any maximum limit so stated, but the instrument constituting the scheme may restrict the investment and borrowing powers of a scheme further than the relevant restrictions in this section.
The following rules and guidance in COLL 5.1 (Introduction), COLL 5.2 (General investment powers and limits for UCITS schemes) and COLL 5.5 (Cash, borrowing, lending and other provisions) apply to the authorised fund manager of a UCITS scheme which is a feeder UCITS and to an ICVC which is a feeder UCITS:
COLL 5.2.10 R (Eligible markets: requirements);
COLL 5.2.11R (7) (Spread: general);
COLL 5.2.11B R (Counterparty risk and issuer concentration);
COLL 5.2.15R (1) (Investment in associated collective investment schemes);
COLL 5.2.20 R (Permitted transactions (derivatives and forwards));
COLL 5.2.21 R (Transactions for the purchase of property);
COLL 5.2.23C R (Valuation of OTC derivatives);
COLL 5.2.26 R (Investment in deposits);