ID 946. 'Partial' investment in CIUs
(Internal reference 405)
Recognition of units in collective investment undertakings as collateral
It is stated in Annex VIII Part 1 point 9 that units in collective investment undertakings (CIUs) may be recognised as eligible collateral if the CIU is limited to investing in instruments that are eligible for recognition under points 7 and 8. Do we understand it correctly that units in CIUs which invest in other CIUs are not eligible, even if these CIUs invest in eligible instruments under points 7 and 8 (i.e. units in CIUs which invest in instruments eligible under points 9 are not eligible financial collateral)?
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