CIUs shall be eligible for the approach set out in Article 350, where all the following conditions are met:
(a)the CIU's prospectus or equivalent document shall include all of the following:
(i)the categories of assets in which the CIU is authorised to invest;
(ii)where investment limits apply, the relative limits and the methodologies to calculate them;
(iii)where leverage is allowed, the maximum level of leverage;
(iv)where concluding OTC financial derivatives transactions or repurchase transactions or securities borrowing or lending is allowed, a policy to limit counterparty risk arising from these transactions;
(b)the business of the CIU shall be reported in half-yearly and annual reports to enable an assessment to be made of the assets and liabilities, income and operations over the reporting period;
(c)the shares or units of the CIU shall be redeemable in cash, out of the undertaking's assets, on a daily basis at the request of the unit holder;
(d)investments in the CIU shall be segregated from the assets of the CIU manager;
(e)there shall be adequate risk assessment of the CIU, by the investing institution;
(f)CIUs shall be managed by persons supervised in accordance with Directive 2009/65/EC or equivalent legislation.