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  • C4-3.2 C4-3.2 Disclosure Requirements

    • C4-3.2.1

      Category 4 investment firms must provide (with respect to regulated investment services), comprehensible information to clients or potential clients on:

      (a) Itself and the types of services that it can provide;
      (b) Fees, costs and associated charges such as:
      (i) The basis or amount of its charges, remuneration and commission for conducting regulated investment services; and
      (ii) The nature or amount of any other income receivable by it or, to its knowledge, by its associate and attributable to that regulated investment service;
      (c) Proposed CIU structures, investments and strategies and appropriate guidance on and warnings of the risks associated with those investments and strategies; and
      (d) Information about methods of redress.
      Added: January 2022

    • C4-3.2.2

      For the purpose of Subparagraph C4-3.2.1 (b), category 4 investment firms must disclose any remuneration that the operator/manager is eligible to receive such as carried interest and employee share option plans (ESOP) to its clients in the prospectus or other offering document.

      Added: January 2022

    • C4-3.2.3

      Category 4 investment firms must provide periodic statements and updates, at least on a semi-annual basis, to their clients on the status of their investments.

      Added: January 2022

    • C4-3.2.4

      For the purposes of Paragraph C4-3.2.3, information provided to clients may include the following, where applicable:

      (a) Updates on status of the CIU, the underlying assets and future strategies and plans;
      (b) Value of the client’s investments (for example total and net asset value of the CIU);
      (c) Any debt, pledges on the CIU assets, and resulting costs such as interested payments;
      (d) Fees and charges paid during the period and their nature;
      (e) Details of remuneration of the operator/manager;
      (f) Details of any income received during the period such as dividends etc.; and
      (g) Any material changes to the structure of the CIUs, the licensee, the management etc.
      Added: January 2022