A hedge fund applying for listing must:
(1) comply with the requirements of this Chapter, with modifications as prescribed by Rule 414.
(2) comply with one of the following:
(a) the hedge fund must be authorized or recognized under section 286 or 287 of the SFA in respect of the offer of its units to the public; or
(b) the units of the hedge fund must be offered only to institutions and/or accredited investors.
(3) where the hedge fund enters into transactions with or through a prime broker, the prime broker (or its parent company) must have:
(a) a credit rating of at least A for long-term debt from Moody's or Standard and Poor's and P-2 or A-1, respectively, for short-term debt; and
(b) financial resources in excess of US$200 million (or its equivalent in another currency).
(4) have in place an independent risk management function.
(5) issue an offering memorandum or introductory document that contains adequate disclosure of all material risks that are specific to the hedge fund. In addition, the fund should state in its offering memorandum or introductory document all provisions and/or conditions under which the fund will be closed and all monies returned to its subscribers.