A manager of a QI fund must—
| (a) |
have an appropriate framework to measure and manage the liquidity risk of each portfolio against its repurchase obligations; |
| (b) |
implement and maintain a repurchase policy, which policy must provide for— |
| (i) |
a level of liquidity for the relevant portfolio of the Q1 fund that would enable the manager to repurchase participatory interests within three calendar months of receipt of an investor instruction to repurchase; |
| (ii) |
the circumstances under which the manager may suspend the repurchase of participatory interests, provided that suspension must be in accordance with the provisions of the Notice of Suspension of Repurchase of Participatory Interests by Manager of Collective Investment Scheme In Securities prescribed by the registrar under section 114(3)(f) of the Act; |
| (c) |
apply liquidity stress-testing providing for— |
| (i) |
increased investor repurchases; |
| (ii) |
shortage of liquidity of the underlying assets of the portfolio; and |
| (iii) |
an analysis of the period of time required to meet repurchase requests in the simulated stress scenarios. |
Statistics Act, 1999
