• COLL 1 COLL 1 General Provisions

    • COLL Part 1.1 COLL Part 1.1 Introductory

      • COLL 1.1.1 Name of Rules

        These rules are the Collective Investment Schemes Rules 2010 (or COLL).

        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 1.1.2 Commencement

        These rules commence on 1 January 2011.

        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 1.1.3 Application of COLL

        These rules do not apply to a collective investment scheme that is registered under the Private Placement Schemes Rules 2010 (PRIV).

        Note A collective investment scheme that is established in the QFC may be registered under PRIV as a private placement scheme.

        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 1.1.4 Effect of definitions, notes and examples

        (1) A definition in the Glossary also applies to any instructions or document made under these rules.
        (2) A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.
        (3) An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.
        Note Under FSR, article 17 (4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)
        Amended by QFCRA RM/2020-6 (as from 15th October 2020)

      • COLL 1.1.5 References to particular currencies

        In these rules, the specification of an amount of money in a particular currency is also taken to specify the equivalent sum in any other currency at the relevant time.

        Derived from QFCRA RM/2020-6 (as from 15th October 2020).

    • COLL Part 1.2 COLL Part 1.2 Basic Concepts and Key terms — All Schemes

      • COLL Division 1.2.A COLL Division 1.2.A Collective Investment Schemes

        • COLL 1.2.1 What is a Collective Investment Scheme?

          A collective investment scheme (or scheme) is an arrangement that is a collective investment fund under the Financial Services Regulations (other than an arrangement that is not a scheme under schedule 1).

          Note on FSR definition of collective investment fund

          The Financial Services Regulations (FSR), schedule 3, part 3, paragraphs 6.2 to 6.6 provide as follows:

          6.2 Subject to paragraphs 6.5 and 6.6, a collective investment fund is any arrangement:
          (1) the purpose or effect of which is to enable persons taking part in the arrangements (the participants) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of property or sums paid out of such profits or income;
          (2) that meets the property condition in paragraph 6.3 and the investment condition in paragraph 6.4.
          6.3 An arrangement will meet the property condition referred to in paragraph (2) if:
          (1) the arrangement is made with respect to property of any description, including money, whether the participants become owners of the property or any part of it or otherwise; and
          (2) any of the participants do not have day-to-day control over the management of the property, whether or not they have the right to be consulted or give directions in respect of the property.
          6.4 An arrangement will meet the investment condition referred to in paragraph 6.2 if:
          (1) the contributions of the participants and the profits or income out of which payments to be made are pooled; and
          (2) the property is managed as a whole by or on behalf of the operator of the scheme.
          6.5 Arrangements for such pooling as is mentioned in paragraph 6.4 (1) in relation to separate parts of the property are not to be regarded as constituting a single collective investment fund unless the participants are entitled to exchange rights in one part for rights in another.
          6.6 The Regulatory Authority may make Rules specifying the circumstances in which particular arrangements do not constitute a collective investment fund for the purposes of paragraph 6.1.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 1.2.B COLL Division 1.2.B Participants, Scheme Property, Units and Unitholders

        • COLL 1.2.2 Who is a Participant?

          A participant in a collective investment scheme (or scheme) is a person who takes part (or is to take part) in the scheme by making a contribution to the scheme property.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.2.3 What is the Scheme Property?

          The scheme property of a collective investment scheme (or scheme) is the property held for or in the scheme.

          Note Property is defined in the glossary.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.2.4 What is a Unit?

          A unit in a collective investment scheme (or scheme) is a unit representing the rights or interests (however described) of a participant in the scheme.

          Note The nature of the rights or interests will differ according to the form of the scheme. If the scheme is a company, the units would be shares in the company.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.2.5 Who is the Unitholder?

          The unitholder of a unit in a collective investment scheme (or scheme) is the person whose name is entered for the unit in the scheme's records (however described).

          Note 1 For a QFC scheme, the name would be entered in:

          (a) the scheme's unitholder register (see rule 4.1.6 (1)); or
          (b) if the unit is a listed unit — the QCSD's, or relevant exchange's, registry or system (see rule 4.1.6 (3)).

          Note 2 Unitholder has a special meaning in div 5.5.B (Unitholder meetings — QFC retail schemes) (see r 5.5.2).

          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL Division 1.2.C COLL Division 1.2.C QFC Schemes and Non-QFC Schemes

        • COLL 1.2.6 What is a QFC Scheme?

          A QFC scheme is a collective investment scheme (or scheme) that is established in the QFC and registered under these rules.

          Note Collective investment scheme (or scheme) is defined in r 1.2.1.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.2.7 What is a Non-QFC Scheme?

          A non-QFC scheme is a collective investment scheme (or scheme) that is not established in the QFC.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 1.2.D COLL Division 1.2.D Operator and Independent Entity

        • COLL 1.2.8 Who is the Operator?

          (1) The operator of a collective investment scheme (or scheme) is the person (however described) responsible for managing the scheme, including all of the scheme property.

          Note 1 Scheme property is defined in r 1.2.3.

          Note 2 For a QFC scheme, this person is described in these rules as the scheme's 'operator' (see r 4.1.3 (Functions of operator generally — all QFC schemes)). For a non-QFC scheme, this person may, for example, be described as the scheme's 'manager'.

          Note 3 The operator of a QFC scheme may outsource the management of all or a part of the scheme property (see pt 8.5).
          (2) The law of the jurisdiction where the scheme is established is applied in deciding who is the person responsible for managing the scheme.

          Note 1 Jurisdiction is defined in the glossary.

          Note 2 For a QFC scheme, see pt 8.4 (Operator and independent entity appointment and removal — QFC schemes).
          (3) The operator may also have other functions under the law of the jurisdiction where the scheme is established.

          Note For a QFC scheme, see eg r 4.1.3 (Functions of operator generally — all QFC schemes).
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.2.9 Who is the Independent Entity?

          (1) The independent entity of a collective investment scheme (or scheme) is the person (however described) responsible, under rule 4.2.6, for safeguarding the scheme property.

          Note 1 Scheme property is defined in r 1.2.3.

          Note 2 For a QFC scheme, this person is described in these rules as the scheme's 'independent entity'. For a non-QFC scheme, this person may, for example, be described as the scheme's 'depository' or 'trustee'.
          (2) The law of the jurisdiction where the scheme is established is applied in deciding who is the person responsible for safeguarding the scheme property.

          Note 1 Jurisdiction is defined in the glossary.

          Note 2 For a QFC scheme, see pt 8.4 (Operator and independent entity appointment and removal—QFC schemes).
          (3) The independent entity may also have other functions under the law of the jurisdiction where the scheme is established.

          Note For a QFC scheme, see eg r 4.2.3 (Oversight functions of independent entity—all QFC schemes).
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL Division 1.2.E COLL Division 1.2.E Open-Ended and Closed-Ended Schemes

        • COLL 1.2.10 What are Open-Ended and Closed-Ended Schemes?

          (1) An open-ended scheme is a collective investment scheme (or scheme) that permits its units to be redeemed, whether continuously or periodically.

          Note Unit is defined in r 1.2.4. Redemption is defined in the glossary.
          (2) A closed-ended scheme is a collective investment scheme (or scheme) that does not permit its units to be redeemed.
          (3) Subject to subrule (4), a scheme registered under these rules must be an open-ended scheme.
          (4) A QFC retail scheme that is a property fund may be closed-ended or open-ended. A REIT must be a closed-ended scheme.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL Division 1.2.F COLL Division 1.2.F Umbrella Schemes

        • COLL 1.2.11 What are Umbrella Schemes and Subschemes?

          (1) An umbrella scheme is a collective investment scheme (or scheme) under which the contributions of the unitholders, and the profit or income out of which payments are to be made to them, are pooled separately in relation to separate parts of the scheme property.

          Note Unitholder is defined in r 1.2.5 and scheme property is defined in r 1.2.3.
          (2) A subscheme of an umbrella scheme is a part of the scheme property that is pooled separately.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 1.2.G COLL Division 1.2.G Qualified Investors and Retail Customers

        • COLL 1.2.12 Who is a qualified investor or retail customer?

          (1) For these rules, a person can be a qualified investor or retail customer for a QFC scheme or an authorised firm (or for both).
          (2) A qualified investor for a QFC scheme is:
          (a) a person who would (if the scheme were an authorised firm and the person were a customer of the scheme) be a business customer or eligible counterparty of the scheme in relation to dealings in investments that consist of (or include) units in the scheme; or
          (b) a person who is a business customer or eligible counterparty of any authorised firm in relation to dealings in investments that consist of (or include) units in the scheme.

          Note Authorised firm, business customer and dealing in investments are defined in the Glossary.
          (3) A qualified investor for an authorised firm in relation to units in a scheme is a person who is a business customer or eligible counterparty of the firm in relation to dealings in investments that consist of (or include) units in the scheme.
          (4) For these rules, a retail customer of an authorised firm in relation to units in a scheme is a customer of the firm who is neither a business customer nor an eligible counterparty of the firm in relation to dealings in investments that consist of (or include) units in the scheme.
          (5) Despite subrule (4), each of following persons is taken to be a retail customer of a QFC scheme:
          (a) a person who would (if the scheme were an authorised firm and the person were a customer of the scheme) be a retail customer of the scheme in relation to dealings in investments that consist of (or include) units in the scheme;
          (b) a person who is a retail customer of any authorised firm in relation to dealings in investments that consist of (or include) units in the scheme.
          (6) In this rule:

          eligible counterparty has the same meaning as in the Investment Management and Advisory Rules 2014.
          Amended by QFCRA RM/2019-4 (as from 1st January 2020)
          Amended by QFCRA RM/2020-6 (as from 15th October 2020).

    • COLL Part 1.3 COLL Part 1.3 Basic Concepts and Key Terms—QFC Schemes

      • COLL Division 1.3.A COLL Division 1.3.A Types of QFC Schemes Generally

        • COLL 1.3.1 QFC Schemes are Qualified Investor or Retail Schemes

          A QFC scheme registered under these rules is either—

          (a) a qualified investor scheme; or
          (b) a retail scheme.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.2 What is a QFC Qualified Investor Scheme?

          A QFC scheme is a qualified investor scheme if it is registered under these rules as a qualified investor scheme.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.3 What is a QFC Retail Scheme?

          A QFC scheme is a retail scheme if it is registered under these rules as a retail scheme.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.4 Types of QFC Retail Schemes

          QFC retail schemes may be UCITS type schemes or property funds.

          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 1.3.5 What is a QFC UCITS Type Scheme?

          A QFC retail scheme is a UCITS type scheme if—

          (a) the scheme's constitutional document contains the statement required by part S2.31 (Extra constitution requirement—UCITS type schemes); or
          (b) the scheme is an umbrella scheme that is a UCITS type scheme and each subscheme would be a UCITS type scheme if it were a separate scheme.

          Note Umbrella scheme and subscheme are defined in r 1.2.11.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.5A What is a QFC retail property fund?

          A QFC retail scheme is a property fund if:

          (a) the scheme's constitutional document contains the statement required by rule 12.2.1 (Extra constitution requirements — QFC retail property funds); or
          (b) the scheme is an umbrella scheme that is a property fund and each subscheme would be a property fund if it were a separate scheme.
          Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL Division 1.3.B COLL Division 1.3.B Legal Forms for QFC Schemes

        • COLL 1.3.6 Permitted Legal Forms for QFC Schemes

          A QFC scheme must take 1 of the following legal forms:

          (a) a QFC collective investment company (or CIC);
          (b) a QFC collective investment partnership (or CIP);
          (c) a QFC collective investment trust (or CIT);
          (d) another permitted form of QFC scheme.

          Note The permitted legal forms of QFC schemes are defined in r 1.3.7 to r 1.3.10.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.7 What is a QFC Collective Investment Company (or CIC)?

          (1) A company incorporated under the Companies Regulations 2005 is a QFC collective investment company (or CIC) if its articles of association provide that the company is established for the sole purpose of constituting a collective investment scheme.

          Note Articles of association is defined in the glossary.
          (2) If the CIC is an open-ended scheme, it must be an open-ended company with variable share capital.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 1.3.8 What is a QFC Collective Investment Partnership (or CIP)?

          A QFC collective investment partnership (or CIP) is a limited partnership registered under the Partnership Regulations 2007 if its partnership agreement provides that the partnership is established for the sole purpose of constituting a collective investment scheme.

          Note Partnership agreement is defined in the glossary.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.9 What is a QFC Collective Investment Trust (or CIT)?

          A QFC collective investment trust (or CIT) is an express trust created under the Trust Regulations 2007 if its trust instrument provides that the trust is established for the sole purpose of constituting a collective investment scheme.

          Note Trust instrument is defined in the glossary.

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.10 What is Another Permitted Form of QFC Scheme?

          Another permitted form of QFC scheme is an entity (other than a CIC, CIP or CIT) if—

          (a) the legal form of the entity—
          (i) is permitted under regulations made under the QFC Law or rules made by the Regulatory Authority or QFC Authority; or
          (ii) otherwise permitted under an approval, authority, or licence, (however described) given by the QFC Authority under the QFC Law; and
          (b) an instrument creating the legal form of the entity provides that the entity is established for the sole purpose of constituting a collective investment scheme.

          Note Entity, QFC Law and instrument are defined in the glossary.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 1.3.C COLL Division 1.3.C Particular Types of QFC Schemes

        • COLL 1.3.11 Islamic Funds

          A QFC scheme, or a subscheme of a QFC umbrella scheme, is an Islamic fund if the constitutional document of the scheme states that the scheme or subscheme is an Islamic fund.

          Note 1 Umbrella scheme and subscheme are defined in r 1.2.11. Constitutional document is defined in r 3.1.1.

          Note 2 The following provisions must be complied with in relation to Islamic funds:

          •   r 5.6.1 (2) and (3) (Accounting standards—all QFC schemes)
          •   pt 8.10 (Shari'a Supervisory Board—all Islamic funds)
          •   sch 2 (Constitutional document content—QFC schemes), r S2.4 (Islamic funds)
          •   sch 3 (Prospectus content—QFC qualified investor schemes), r S3.2 (e) (Description of scheme etc) and r S3.3 (Islamic funds)
          •   sch 4 (Prospectus content—QFC retail schemes), r S4.2 (f) (Description of scheme etc) and r S4.3 (Islamic funds).
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.12 Money-Market Funds

          A QFC scheme, or a subscheme of a QFC umbrella scheme, is a money-market fund if the constitutional document of the scheme states that the scheme or subscheme is a money-market fund.

          Note 1 Umbrella scheme and subscheme are defined in r 1.2.11. Constitutional document is defined in r 3.1.1.

          Note 2 The following provisions must be complied with in relation to money-market funds:

          •   r 6.1.5 (Investments by money-market funds-QFC qualified investor schemes)
          •   r 7.2.4 (Investments by money-market funds-QFC retail schemes)
          •   r 8.2.19 (Maintaining value-all money-market funds)
          •   pt S2.4 (Extra constitution requirements-money-market funds)
          •   sch 3 (Prospectus content—QFC qualified investor schemes), r S3.2 (f) (Description of scheme etc)
          •   sch 4 (Prospectus content-QFC retail schemes), r S4.2 (g) (Description of scheme etc) (see also r S4.4 (r) (Investment objectives and policy etc)).
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 1.3.13 Other Types of QFC Schemes

          This division does not limit by implication the types of QFC schemes permitted under these rules.

          Note 1 See, for example, the definitions of feeder fund, fund of fund and property fund in the glossary.

          Note 2 For guaranteed funds and similar funds, see r 8.9.1 (5) to (11) (Name of scheme etc—all QFC schemes).

          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL Part 1.4 COLL Part 1.4 Basic Concepts and Key Terms — Non-QFC Schemes

      • COLL 1.4.1 What is a Non-QFC Retail Customer Scheme?

        A non-QFC scheme is a retail customer scheme if it is a non-QFC scheme declared to be a retail customer scheme under rule 10.1.1 (Declaration of non-QFC retail customer schemes).

        Note Non-QFC scheme is defined in rule 1.2.7.

        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 1.4.2 What is a Non-QFC Qualified Client Scheme?

        A non-QFC scheme is a qualified client scheme if is not a retail customer scheme.

        Note Non-QFC scheme is defined in rule 1.2.7.

        Derived from QFCRA RM/2010-05 (as from 1st January 2011)