• COLL Part 4.1 COLL Part 4.1 The Operator—All QFC Schemes

    • COLL 4.1.1 Requirements for Operator—All QFC schemes

      (1) The operator of a QFC scheme must be an authorised firm that—
      (a) is a corporation; and

      Note Corporation is defined in the glossary.
      (b) has an authorisation for each of the following regulated activities:
      (i) operating collective investment schemes;
      (ii) dealing in investments;
      (iii) managing investments; and

      Note Authorisation, regulated activity and the regulated activities mentioned in this paragraph are defined in the glossary.
      (c) is permitted under the scope of its authorisation to be the operator of the scheme, QFC schemes of that kind or any scheme registered in the QFC; and
      (d) is a different person from the independent entity; and
      (e) for a CIC or CIP—is a different person from the scheme; and

      Note CIC and CIP are defined in r 1.3.7 and r 1.3.8 respectively.
      (f) is independent of—
      (i) the independent entity; and
      (ii) if the scheme is a CIC or CIP—the scheme; and
      (iii) a member (however described) of the governing body of the independent entity or, for a CIC or CIP, the scheme.

      Note Governing body is defined in the glossary.
      (2) Without limiting subrule (1) (f), the operator is not independent of another person if—
      (a) the operator has at any time during the last 2 years been involved in material business dealings with the person (otherwise than in the exercise of their respective functions as the holders of positions in relation to any scheme); or
      (b) the person has a material interest in the operator or the operator has a material interest in the person.

      Note Function is defined in the glossary.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.1.2 Operator Must Comply with Legal and Regulatory Requirements—All QFC Schemes

      (1) The operator of a QFC scheme must comply with every legal and regulatory requirement applying to the operator—
      (a) in relation to the scheme; or
      (b) as the operator of a QFC scheme; or
      (c) as an authorised firm.
      (2) Without limiting subrule (1), the operator must act in accordance with the following:
      (a) these rules;
      (b) any regulations under which the QFC scheme is established, including any law applied by, or that supplements, those regulations;
      (c) the other provisions of the law applying in the QFC in relation to—
      (i) the scheme; or
      (ii) the operator as the operator of a QFC scheme or as an authorised firm;
      (d) the scope of the operator's authorisation, including any conditions, restrictions or requirements;

      Note Authorisation is defined in the glossary.
      (e) the scope of the scheme's registration, including any conditions, restrictions or requirements;
      (f) the constitutional document;

      Note Constitutional document is defined in r 3.1.1.
      (g) the latest filed prospectus.

      Note Latest filed prospectus is defined the glossary.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.1.3 Functions of Operator Generally—All QFC Schemes

      (1) The operator of a QFC scheme is responsible for managing the scheme, including all the scheme property.

      Note Scheme property is defined in r 1.2.3.
      (2) Without limiting subrule (1), the operator of a QFC scheme must—
      (a) ensure that decisions about investments and borrowings by the scheme are made in accordance with the scheme's investment objectives, strategies and policy as stated in the constitutional document and latest filed prospectus; and

      Note Borrowing and latest filed prospectus are defined in the glossary. Constitutional document is defined in r 3.1.1
      (b) value the scheme property in accordance with these rules; and
      (c) calculate the scheme's net asset value, net asset value per unit, and the price of units for issue and redemption, in accordance with these rules; and

      Note Net asset value and net asset value per unit are defined in the glossary.
      (d) ensure the scheme property is—
      (i) clearly identified as scheme property; and
      (ii) held separately from the operator's own property, and the property of any other scheme; and
      (e) give the independent entity instructions about the exercise of rights in relation to the scheme property; and
      (f) not acquire or dispose of immovables without first giving the independent entity written notice of the acquisition or disposal.

      Note The operator also has functions in relation to the scheme under a number of other provisions of these rules eg see pt 8.2 (Valuation and pricing—QFC schemes).
      Amended by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL 4.1.4 Duty of Operator to Report Certain Breaches of Law—All QFC Schemes

      (1) This rule applies if—
      (a) the operator of a QFC scheme becomes aware that the operator, the independent entity or any other person has breached, or suspects on reasonable grounds that the operator, the independent entity or any other person may have breached or may be about to breach, in relation to the scheme any provision of these rules, any other Rules, any other law of the QFC or the law of any other jurisdiction; and

      Note Rules is defined INAP. Breach and jurisdiction are defined in the glossary.
      (b) the breach has had, or is likely to have, a material adverse effect on the scheme or the interests of unitholders.
      (2) The operator must tell the Regulatory Authority about the breach immediately, but within 1 business day.

      Examples—meaning of 'within 1 business day'
      1 If, on a business day, the operator becomes aware of the breach, the operator must tell the authority about it immediately, but on that day.
      2 If, on a day that is not a business day, the operator becomes aware of the breach, the operator must tell the authority about it immediately, but by no later than the next business day.

      Note Business day is defined in the glossary.
      (3) The operator must give the Regulatory Authority any information about the breach that the authority reasonably requires.

      Note Under GENE, Rule 4.1.3, an authorised firm must also advise the Authority of certain significant events.
      Amended by QFCRA RM/2019-5 (as from 1st July 2019).

    • COLL 4.1.5 Particular Duties of Operator—All QFC Schemes

      The operator of a QFC scheme must—

      (a) act honestly; and
      (b) exercise the degree of care and diligence that a reasonable person would exercise in the operator's position; and
      (c) act in the best interests of the unitholders and, if there is a conflict between the unitholders' interests and its own interests, give priority to the unitholders' interests; and
      (d) treat unitholders who hold units in the same class equally and unitholders who hold units in different classes fairly; and

      Note Class is defined in the glossary.
      (e) not make improper use of information acquired as a result of being the operator—
      (i) to gain, directly or indirectly, a personal advantage or an advantage for another person; or
      (ii) to cause detriment to the unitholders; and
      (f) not make improper use of the position of operator—
      (i) to gain, directly or indirectly, a personal advantage or an advantage for another person; or
      (ii) to cause detriment to the unitholders.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.1.6 Register of Unitholders—All QFC Schemes

      (1) Subject to subrule (3), the operator of a QFC scheme must ensure that a register of unitholders is kept as part of the operator's records under rule 4.1.7.
      (2) The operator must exercise all due diligence and take reasonable care to ensure that—
      (a) the register is accurate, complete and up to date; and
      (b) for a qualified investor scheme—only a person who is a qualified investor for the scheme is recorded in the register.

      Note 1 Qualified investor scheme, and qualified investor for a QFC scheme, are defined in r 1.3.2 and r 1.2.12 (2) respectively.

      Note 2 Rule 8.3.1 specifies the information that must be included in the register.
      (3) For a QFC scheme that is listed in the Qatar Stock Exchange or in any other regulated exchange, the records (held in the QCSD's, or in the relevant exchange's, registry or system) of transfers or titles to units in the scheme is taken to be the unitholder register. A record in the QCSD's, or relevant exchange's, registry or system is conclusive evidence of title.
      Amended by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL 4.1.7 Records of Operator—All QFC Schemes

      (1) The operator of a QFC scheme must make the records necessary—
      (a) to enable the operator to comply with—
      (i) these rules; and
      (ii) the other provisions of the law applying in the QFC in relation to—
      (A) the scheme; or
      (B) the operator as the operator of a QFC scheme or as an authorised firm; and
      (b) to demonstrate at all times whether it has complied with these rules.
      (2) If the scheme is a QFC qualified investor scheme and the latest filed prospectus states that the operator's policy is to require a dilution adjustment or dilution levy, the operator must make a record of—
      (a) how it calculates and estimates dilution; and
      (b) its policy and method for deciding the rate or amount of any dilution adjustment or dilution levy.

      Note Latest filed prospectus, dilution adjustment, dilution levy and dilution are defined in the glossary.
      (3) If the scheme is a QFC retail scheme, the operator must make a record of—
      (a) how it calculates and estimates dilution; and
      (b) its policy and method for deciding the rate or amount of any dilution adjustment or dilution levy.
      (4) Subrules (2) and (3) do not limit subrule (1).
      (5) The operator must keep records made for this rule for at least 6 years after the day they are made.
      (6) The operator must, at the request of the Regulatory Authority, the independent entity or the auditor—
      (a) make records kept under this rule available for inspection within a reasonable period of not longer than 3 days; and
      (b) provide a copy of any of the records, in the requested form (if any), within a reasonable period of not longer than 3 days.
      (7) The operator must not charge for making records available, or providing a copy of any records, under subrule (6).

      Note GENE, ch 6 also contains provisions about record-keeping.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.1.8 Operator Must Give Information etc to Independent Entity and Auditor—All QFC Schemes

      The operator of a QFC scheme must, on request, immediately give the independent entity or auditor of the scheme the information and explanations in relation to the scheme that the independent entity or auditor reasonably requires.

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

    • COLL 4.1.9 Maintenance of Capital Notification—CIC's

      If the capital of a CIC changes so that it falls below the minimum, or exceeds the maximum, stated in the constitutional document, the operator must tell the Regulatory Authority about the change immediately, but within 1 business day after the day the change happens.

      Examples

      See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.

      Note CIC is defined in r 1.3.7.

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