Compliance with Underlying Fund Rules Clause Samples
The "Compliance with Underlying Fund Rules" clause requires parties to adhere to the rules, policies, and restrictions set by the underlying investment funds in which they are investing or through which they are participating. In practice, this means that investors or fund managers must ensure their actions, such as transfers, redemptions, or reporting, do not violate the terms established by the underlying funds. This clause is essential for maintaining legal and operational alignment with the requirements of the underlying funds, thereby preventing breaches that could result in penalties, loss of investment privileges, or other negative consequences.
POPULAR SAMPLE Copied 1 times
Compliance with Underlying Fund Rules. To the extent applicable to the Underlying Funds, the Customer shall (i) be responsible for compliance by the trust and plan participants with Rule 22c-2 under the Investment Company Act of 1940, (ii) cause any recordkeeper engaged by the Customer to comply with Rule 22c-2, and (iii) comply or cause any such recordkeeper or plan participant, as applicable, to comply with any requests and/or requirements of any investment company relating to Rule 22c-2 or compliance with any provision of the investment company’s prospectus or statement of additional information. The foregoing obligations shall also apply with respect to an Underlying Fund which is not an investment company but which applies rules similar to those of Rule 22c-2.