Short sales

(1) The AIF capital management company may not sell, for the joint account of investors, assets under sections 193, 194, and 196, where the respective assets do not belong to the special AIF at the time the transaction is concluded; section 197 remains unaffected. The effectiveness of the legal transaction is not affected by an infringement of the first sentence.
(2) Subsection (1) does not apply to AIF capital management companies managing hedge funds. The Federal Institute may restrict short sales within the meaning of section 283(1), first sentence, point 2, where it considers this necessary to protect investors or to ensure the stability and integrity of the financial system.