34Restrictions on portfolio allocation—financial asset regulated CISs

34 Restrictions on portfolio allocation—financial asset regulated CISs

(1) No more than 10% of the value of the assets of a passport fund may be held in: (a) interests in a single financial asset regulated CIS other than a passport fund or sub‑fund of a financial asset regulated CIS other than a passport fund; or (b) a derivative where the value is determined by or varied with respect to the price of the interests in a single financial asset regulated CIS other than a passport fund or, if the financial asset regulated CIS other than a passport fund has sub‑funds, a sub‑fund of the financial asset regulated CIS other than a passport fund. (2) No more than 30% of the value of the assets of a passport fund may be held in: (a) interests in financial asset regulated CISs other than a passport fund and sub‑funds of financial asset regulated CISs other than passport funds; or (b) derivatives where the value is determined by or varied with respect to the price of the interest in, a financial asset regulated CIS other than a passport fund or, if the financial asset regulated CIS other than a passport fund has sub‑funds, a sub‑fund of a financial asset regulated CIS other than a passport fund. (3) Subsections (1) and (2) do not apply to holdings of interests in a financial asset regulated CIS or sub‑fund of a financial asset regulated CIS that is a regulated CIS in the home economy, if: (a) the operator of the financial asset regulated CIS is the operator of the passport fund; and (b) the passport fund would comply with the requirements of sections 19 to 42 if the assets, liabilities, derivatives and securities lending arrangement attributable to the interests held in each financial asset regulated CIS or sub‑fund of a financial asset regulated CIS in which investment is permitted because of this subsection (3), were assets, liabilities, derivatives or securities lending arrangements of the passport fund instead of the financial assets regulated CIS or sub‑fund; and (c) the financial asset regulated CIS or sub‑fund does not hold more than 10% by value of its assets in a single financial asset regulated CIS or more than 30% by value of its assets in financial asset regulated CISs.