Alternative Investment Funds face monthly reporting, liquidity controls, and a 2x NAV leverage cap for leveraged Category III funds. Category III AIFs employing leverage must maintain independent risk and compliance functions, disclose conflicts, and comply with reporting: monthly reports in prescribed formats for leveraged Category III AIFs and quarterly for other AIFs. Managers of open-ended Category III AIFs must implement liquidity management policies, disclose and limit suspension of redemptions to exceptional circumstances, and communicate actions to investors and the regulator. Leverage is measured as total exposure over NAV, exposure calculation rules are specified, and leverage shall not exceed 2 times the NAV; daily monitoring, custodian reporting, breach notifications, and remediation timelines are mandated.
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Provisions expressly mentioned in the judgment/order text.
Alternative Investment Funds face monthly reporting, liquidity controls, and a 2x NAV leverage cap for leveraged Category III funds.
Category III AIFs employing leverage must maintain independent risk and compliance functions, disclose conflicts, and comply with reporting: monthly reports in prescribed formats for leveraged Category III AIFs and quarterly for other AIFs. Managers of open-ended Category III AIFs must implement liquidity management policies, disclose and limit suspension of redemptions to exceptional circumstances, and communicate actions to investors and the regulator. Leverage is measured as total exposure over NAV, exposure calculation rules are specified, and leverage shall not exceed 2 times the NAV; daily monitoring, custodian reporting, breach notifications, and remediation timelines are mandated.
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