29Exceeding limits in this Part

29 Exceeding limits in this Part

(1) A passport fund must not acquire an asset or enter into a derivative or securities lending arrangement if it would result in a limit in this Part being exceeded or exceeded to a greater extent. (2) A passport fund that exceeds a limit in this Part must cease to exceed the limit as soon as practicable but no later than 3 months from the date the limit was exceeded. (3) The period in subsection (2) may be extended for a period or further period of no more than 1 month by notice in writing to the operator by the independent oversight entity if the operator satisfies the independent oversight entity that it is in the best interests of the members of the passport fund for extension. (4) A passport fund does not breach a rule in this Part if it exceeds a limit otherwise than by the acquisition of an asset or the entry into a derivative or securities lending arrangement and it complies with this section.

Note: See also the reporting requirements under section 12.