Investment restrictions

The investment restrictions set out in section 1.ii (Investment restrictions) of the Part I of the Retail Investor AIF chapter apply to all Retail Investor AIF except where they are disapplied by Part II (Specific Fund-Type Requirements) section.


A Retail Investor AIF which invests across a range of currencies may borrow foreign currency by means of a back-to-back loan agreement. Foreign currency obtained in this manner is not classed as borrowings for the purposes of the Central Bank’s borrowing restriction in paragraph 2 of section 1.i (General restrictions) of Part I of the Retail Investor AIF chapter, provided the offsetting deposit equals or exceeds the value of the foreign currency loan outstanding. However, where foreign currency borrowings exceed the value of the back-to-back deposit, any excess is regarded as borrowing for the purposes of paragraph 2 of section 1.iii (Borrowing powers) of Part I of the Retail Investor AIF chapter.

Issued: 3 July 2013
Latest revision: 3 July 2013