Section 193

An operator of a private collective investment scheme that is a hedge fund must prominently disclose to the unit holders in the prospectus and any other financial promotions relating to the collective investment scheme, the following disclosure statement -

"When considering investment in a hedge fund you should consider the fact that some hedge fund products use leverage and other speculative investment practices that may increase the risk of investment loss, can be illiquid, may involve complex tax structures, often charge high fees, and in many cases the underlying investments are not transparent and are known only to the hedge fund investment manager.

Returns from hedge funds can be volatile and you may lose all or part of your investment. With respect to single manager products, the manager has total trading authority and this could mean a lack of diversification and higher risk.

The hedge fund may be subject to substantial expenses that are generally offset by trading profits and other income. A portion of those fees is paid to the hedge fund manager a:zd operator. ".