(1) Hedge funds are general open-ended domestic special AIF under section 282 whose investment conditions additionally provide for at least one of the following conditions: 1. the use of leverage on a considerable scale, or 2. the sale of assets for the joint account of investors that do not belong to the AIF at the time the transaction is concluded (short sale). The criteria for determining when leverage is employed on a considerable scale are governed by Article 111 of Delegated Regulation (EU) No 231/2013.
(2) The investment conditions of hedge funds must contain particulars of whether the assets are held in custody by a depositary or by a prime broker.
(3) (repealed)
Subdivision 4
Special Provisions for Open-Ended Domestic Special AIF with Fixed Investment Conditions