The total exposure to a single entity, understood as a consolidated group including subsidiaries, may not exceed 20% of net assets. This rule applies by aggregating equity securities, debt securities, money market instruments, and derivative exposures.

The AIFMD II directive introduces specific rules for loan-originating funds. Open-ended AIFs must comply with a maximum leverage ratio of 175%, while closed-ended AIFs have a maximum leverage ratio of 300%.

The AIFMD II directive, applicable from the first quarter of 2026, introduces specific rules for loan-originating funds. These vehicles must comply with a diversification limit of 20% per borrower when that borrower is itself an AIF, a UCITS, or a financial institution.

The '5/10/40' rule stipulates that a UCITS may not invest more than 5% of its net assets in securities from a single issuer. This limit may be raised to 10% provided that the sum of positions exceeding 5% does not represent more than 40% of total fund assets. This rule is codified in articles R214-21 and following of the Code monétaire et financier.

The control ratio does indeed prohibit holding more than 25% of the units of a single CIS. It also prohibits holding more than 10% of the share capital or voting rights of a single issuer.

Sovereign securities benefit from substantial derogations. Securities issued or guaranteed by an EU member state may represent up to 35% of net assets per issuer. This limit may be raised to 100% if the portfolio holds at least six different issues, none of which exceeds 30% of assets.

Diversification rules involve several categories of limits, including those for UCITS, alternative investment funds (AIFs), and sovereign securities. Each category has specific limits that must be observed.

New funds benefit from a six-month grace period to achieve compliance with risk diversification ratios. In the event of a passive breach resulting from market movements, regularization must take place on a priority basis in the interest of unitholders.