• COLL Division 4.2.B COLL Division 4.2.B Non-QFC Independent Entities—QFC Schemes

    • COLL 4.2.9 Non-QFC Independent Entities—Criteria for Regulatory Authority Action

      (1) This rule applies in relation to the making of a decision by the Regulatory Authority under these rules about whether a corporation that is not an authorised firm or another QFC licensed firm is an appropriate person to be the independent entity of a QFC scheme (or a scheme established in the QFC that is proposed to become a QFC scheme).

      Note This rule applies to decisions under the following provisions:
      •   r 2.1.3 (2) (d) (ii) (Decision on application for registration of scheme established in QFC)
      •   r 4.2.13 (2) (a) (Non-QFC independent entities—removal by Regulatory Authority).
      (2) The Regulatory Authority may consider all or any of the matters mentioned in rule 4.2.1 (2) (a) to (h) (Requirements for independent entity—all QFC schemes).
      (3) Subrule (2) does not limit the matters the Regulatory Authority may consider.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.2.10 Non-QFC Independent Entities—Annual Compliance Certificate

      (1) This rule applies to the independent entity of a QFC scheme if the independent entity is not an authorised firm.
      (2) Not later than 1 February in each year, the independent entity must give the operator a written certificate about its compliance with the following provisions in relation to the QFC scheme during the previous year (the reporting year):
      •   rule 4.2.3 (Oversight functions of independent entity—all QFC schemes)
      •   rule 4.2.6 (Property safeguarding functions of independent entity—all QFC schemes).
      (3) The certificate must—
      (a) name the QFC scheme; and
      (b) state whether the independent entity complied fully with all relevant provisions in relation to its functions under rule 4.2.3 and rule 4.2.6 and, if it did not fully comply with all relevant provisions, the details of any material non-compliance.

      Note Function is defined in the glossary.
      (3A) If the QFC scheme is a property fund and the exception in rule 4.2.6 (6) (a) or (b) applies, the certificate must include a description of the immovable for which the independent entity is not responsible.
      (4) In this rule:

      relevant provisions means the provisions of—
      (a) these rules; and
      (b) any other law of the QFC applying in relation to the scheme; and
      (c) the law of any other jurisdiction (if any) applying in relation to the scheme.

      Note Jurisdiction is defined in the glossary.
      Amended by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL 4.2.11 Non-QFC Independent Entities—Oversight of Property Safeguarding Functions by Operators

      (1) This rule applies in relation to the independent entity of a QFC scheme if the independent entity is not an authorised firm.
      (2) The operator must take reasonable care to ensure that the independent entity exercises its functions under rule 4.2.6 (Property safeguarding functions of independent entity—all QFC schemes) in accordance with the provisions of—
      (a) these rules; and
      (b) any other law of the QFC applying in relation to the scheme; and
      (c) the law of any other jurisdiction (if any) applying in relation to the scheme.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.2.12 Non-QFC Independent Entities—Removal by Operators

      (1) This rule applies in relation to the independent entity of a QFC scheme if—
      (a) the independent entity is not an authorised firm; and
      (b) the operator considers that the independent entity is not, or is no longer, an appropriate person to be the independent entity of the scheme.
      (2) In making a decision for subrule (1) (b), the operator must consider the matters mentioned in rule 4.2.1 (2) (a) to (h) (Requirements for independent entity—all QFC schemes).
      (3) Subrule (2) does not limit the matters the operator may consider.
      (4) If this rule applies, the operator must—
      (a) by written notice given to the independent entity, remove the independent entity; and
      (b) appoint another person as the independent entity of the scheme.
      (5) The person appointed must be eligible to be the independent entity of the scheme under rule 4.2.1.
      (6) If the independent entity is removed under this rule, the operator must tell the Regulatory Authority about the removal immediately, but within 1 business day after the day the independent entity is removed.
      (7) If another person is appointed as the independent entity under this rule, the operator must tell the Regulatory Authority about the appointment immediately, but within 1 business day after the day the appointment is made.

      Examples for r (6) and r (7)

      See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
      (8) This rule is additional to, and does not limit, part 8.4 (Operator and independent entity appointment and removal—QFC schemes).
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 4.2.13 Non-QFC Independent Entities—Removal by Regulatory Authority

      (1) The rule applies in relation to the independent entity of a QFC scheme if the independent entity is not an authorised firm.
      (2) The Regulatory Authority may, by written notice given to the operator, require the operator to remove the independent entity and appoint another person as the independent entity if satisfied that—
      (a) the independent entity is not, or is no longer, an appropriate person to be the independent entity of the scheme; or

      Note See r 4.2.9 (Non-QFC independent entities—criteria for Regulatory Authority action)).
      (b) it is desirable to remove the independent entity to protect participants or potential participants in the scheme or the financial system operating in or from the QFC; or
      (c) the independent entity is in breach of, or has been in breach of, these rules, any other law of the QFC or the law of any other jurisdiction; or
      (d) a request has been received under the Financial Services Regulations, article 20 (International relations and cooperation) in relation to the independent entity.
      (3) The Regulatory Authority may give a notice under subrule (2) only if it has—
      (a) given the independent entity and the operator prior notice of its intention to give the notice; and
      (b) given the independent entity and the operator a reasonable opportunity to make representations; and
      (c) considered any representations made.
      (4) However, subrule (3) does not apply if—
      (a) the Regulatory Authority considers that any delay likely to arise because of the application of the subrule would be prejudicial to participants or potential participants in the QFC scheme or the financial system operating in or from the QFC; or
      (b) the power is to be exercised following a decision by the Regulatory Authority under the Financial Services Regulations, part 9 (Disciplinary and enforcement powers), or by the Regulatory Tribunal or the QFC Court, in relation to the independent entity.
      (5) If subrule (4) (a) applies, the Regulatory Authority must—
      (a) give the independent entity and the operator an opportunity to make representations promptly after the notice under subrule (2) has been given; and
      (b) consider any representations made.
      (6) If the Regulatory Authority gives a notice under subrule (2), it must give the independent entity a written notice—
      (a) stating that it has given the notice under subrule (2); and
      (b) giving reasons for the notice; and
      (c) tell the independent entity that the independent entity may appeal to the Regulatory Tribunal against the decision.
      (7) The operator must give effect to a notice under subrule (2).
      (8) The person appointed by the operator as the replacement independent entity must be eligible to be the independent entity of the scheme under rule 4.2.1 (Requirements for independent entity— all QFC schemes).
      (9) This rule is additional to, and does not limit, any other powers of the Regulatory Authority to remove the independent entity of a QFC scheme.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)