Related party investment restrictions require client consent and mandate prudential limits, disclosures, rating criteria and monitoring. Amendments define related party for portfolio managers and require prior client consent for investments in securities of related parties or associates, subject to Board exceptions. Portfolio managers must disclose related party investments and their diversification policy. Board specified prudential limits apply at the client level; investments in unrated securities of related parties are prohibited and investments must meet Board specified credit rating criteria. An alert based monitoring system is mandated to ensure compliance, with transitional and Board specified exemptions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Related party investment restrictions require client consent and mandate prudential limits, disclosures, rating criteria and monitoring.
Amendments define related party for portfolio managers and require prior client consent for investments in securities of related parties or associates, subject to Board exceptions. Portfolio managers must disclose related party investments and their diversification policy. Board specified prudential limits apply at the client level; investments in unrated securities of related parties are prohibited and investments must meet Board specified credit rating criteria. An alert based monitoring system is mandated to ensure compliance, with transitional and Board specified exemptions.
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