Regulation 52C does not apply in respect of any shares or units in a diversely owned AIF in relation to which—
conditions A and B are both satisfied, or
condition C is satisfied.
Condition A is that the shares or units in the diversely owned AIF form part of the financial trader’s stock in trade and all the profits and losses, including distributions, arising in relation to the shares or units in the diversely owned AIF are included in the computation of the financial trader’s trading profits for the relevant period.
Condition B is that the shares or units in the diversely owned AIF are accounted for under generally accepted accounting practice on the basis of fair value accounting.
Condition C is that the shares or units in the diversely owned AIF are a relevant holding in respect of which the provisions of section 490 of CTA 2009 apply in relation to the financial trader.
In paragraph (4) “relevant holding” means—
any rights under a unit trust scheme;
a material interest in an offshore fund; or
any shares in an open-ended investment company.