Section 140

(1)

An operator of a private equity collective investment scheme must ensure that

{a}

unless the purpose of the private equity collective investment scheme is to invest in a single venture or undertaking, it does not invest more than 25 per cent of the collective investment scheme in one such venture or undertaking; and

{b)

it does not invest in companies which are in any way connected to the private equity collective investment scheme or the operator of the private equity collective investment scheme.

(2J

If an operator of a private equity collective investment scheme intends to invest in any venture, the operator must ensure that it makes adequate arrangements for the undertaking of due diligence in respect of that venture including investigating its corporate governance standards.