Borrowing and leverage in restricted schemes require placement memorandum disclosure, investor consent for deviations, and proportionate risk management.

Borrowing and leveraging by a restricted scheme are permitted subject to disclosure, investor-consent and risk-management safeguards. The placement memorandum must specify maximum leverage and the methodology for calculating it. Any departure from disclosed leverage requires consent from two-thirds of investors by value. An FME using leverage must maintain a comprehensive risk-management framework appropriate to the fund's size, complexity and risk profile.

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