48Rights to redemptions—exchange traded passport funds

48 Rights to redemptions—exchange traded passport funds

(1) This section applies to a passport fund if: (a) it is an index fund or benchmark fund; and (b) it is traded on one or more relevant financial markets. (2) The operator must take reasonable steps to ensure that each member of the passport fund is able to sell the member’s interests in the fund on the relevant financial markets at a price that is not materially different from the net asset value per interest of the passport fund. (3) Subject to this Division and any requirements of the economy in which the member is located, a member of the passport fund may request a redemption of the member’s interests under section 50 if trading of the interests has been suspended on all the relevant financial markets for 5 consecutive days on which one or more of the financial markets is open for business (not counting days on which the redemptions of interests in the passport fund are suspended under section 51). (4) Subsection (3) does not apply to a passport fund if it became a regulated CIS before 1 January 2015. (5) For this section, a financial market is relevant to a passport fund if: (a) it is operated in a participating economy; and (b) under the operating rules of the financial market, interests in the passport fund are admitted, and remain admitted, to trading status.