Section 154

An operator of a hedge fund must ensure that the risks inherent in the operation of a hedge fund are adequately addressed, with due regard to the nature of strategies and investment process employed by the operator and the role of collective investment scheme administrators, custodians and if appointed, prime brokers.

(2}

An operator of a hedge fund may grant authority to a prime broker to combine the assets of the collective investment scheme with any other assets held by or available to the prime broker as collateral for any financing activities to be undertaken by the prime broker if the following conditions are met -

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