French Monetary and Financial Code
In forceThe redemption by the fund of its units and the issue of new units may be temporarily suspended by the management company when exceptional circumstances so require and if the interests of the unitholders or the public so dictate, under conditions laid down in the fund regulations.
In the same circumstances, when the disposal of certain assets would not be in the interests of the unitholders, the other assets may be transferred to a new fund. The demerger is decided by the management company. Notwithstanding article L. 214-15, it is not subject to approval by the Autorité des marchés financiers, but must be notified to it without delay. Each unitholder receives a number of units in the new fund equal to that held in the old fund. The old fund is liquidated as soon as the assets have been transferred. The conditions for the application of this paragraph shall be defined by decree.
The General Regulations of the Autorité des marchés financiers shall determine the other cases in which the fund rules provide, where applicable, for the issue of units to be suspended, in whole or in part, temporarily or permanently.
They also lay down the cases in which and the conditions under which the fund rules may provide for the redemption of units to be capped on a provisional basis when exceptional circumstances so require and if the interests of unitholders or the public so dictate.
