Sub-paragraph 6: Master and feeder general purpose investment funds

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L214-24-57L214-24-58L214-24-59L214-24-60L214-24-61

Article L214-24-57

French Monetary and Financial CodeIn force
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Updated 8 Nov 2023

I. - The articles of association or fund rules of a general-purpose investment fund known as a "feeder general-purpose investment fund" may stipulate that all of its assets are invested in shares or units of a single FIA, known as a "master FIA", or a single UCITS, known as a "master UCITS", and, on an ancillary basis, in cash.

A feeder general-purpose investment fund may enter into financial contracts under the conditions laid down by decree in the Conseil d'Etat.

The sub-fund of a general-purpose investment fund may be governed by the provisions relating to feeder general-purpose investment funds set out in this article.

II. - Under the conditions laid down in the general regulations of the Autorité des marchés financiers, a feeder general-purpose investment fund may have as its master AIF or master UCITS :

1° A UCITS covered by section 1 of this chapter;

2° a general-purpose investment fund covered by this paragraph or a risk mutual fund covered by sub-paragraph 1 of paragraph 2 of this sub-section; or

3° a fund of alternative funds covered by paragraph 6 of this sub-section or a general-purpose professional fund covered by sub-paragraph 1 of paragraph 1 of sub-section 3 of this section; or

4° A fund declared under paragraph 2 of sub-section 3 of this section;

5° a fonds commun d'intervention sur les marchés à terme referred to in Article L. 214-42 as it read prior to the date of publication of Order 2011-915 of 1 August 2011 relating to undertakings for collective investment in transferable securities and to the modernisation of the legal framework for asset management; or

6° Or a foreign UCITS;

7° Or an AIF established in another Member State of the European Union, managed by an authorised management company established in another Member State of the European Union, under the conditions specified by the General Regulation of the Autorité des marchés financiers.

III. - An AIF or a master UCITS must meet the following conditions:

1° It is not itself a feeder UCITS or general-purpose investment fund;

2° It does not hold units of a feeder AIF or UCITS.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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