• COLL 6 COLL 6 Investment and Borrowing—QFC Qualified Investor Schemes

    • COLL Part 6.1 COLL Part 6.1 Investment and borrowing generally—QFC qualified investor schemes

      • COLL 6.1.1 General Duties of Operator in Relation to Investment and Borrowing—QFC Qualified Investor Schemes

        (1) The operator of a QFC qualified investor scheme must ensure that the scheme property is not invested or used in breach of this chapter.

        Note Breach is defined in the glossary.
        (2) If the operator becomes aware of a breach of this chapter, the operator must take action to rectify the breach at its own expense.
        (3) The operator must take action under subrule (2) immediately unless subrule (4) applies.
        (4) If the operator believes on reasonable grounds that taking action under subrule (2) immediately would not be in the best interests of the unitholders, the operator must take the action as soon as it is in the interests of unitholders to do so.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 6.1.2 Investment Powers Generally—QFC Qualified Investor Schemes

        (1) The operator of a QFC qualified investor scheme must ensure that investments included in the scheme property are investments to which the scheme is dedicated.

        Note Investment and dedicated are defined in the glossary.
        (2) Subrule (1) is subject to the other provisions of this chapter.
        (3) The constitutional document and the latest filed prospectus may further restrict—
        (a) the kinds of property in which the scheme property may be invested; and
        (b) the kinds of transactions permitted by the scheme and any relevant limits.
        (4) Subrule (3) does not limit the further restrictions that the constitutional document and latest filed prospectus may impose on investment by the scheme or on the use of the scheme property.
        (5) The operator must ensure that any further restrictions are complied with.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 6.1.3 Permissible Investments Generally—QFC Qualified Investor Schemes

        (1) The scheme property of a QFC qualified investor scheme must be invested only in 1 or more of the following:
        (a) specified products;
        (b) immovables;
        (c) gold, silver, platinum and palladium;
        (d) commodity contracts traded on an eligible exchange.
        (2) This rule is subject to the other provisions of this chapter.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 6.1.4 Spread of Risk—QFC Qualified Investor Schemes

        The operator of a QFC qualified investor scheme must take reasonable steps to ensure that the scheme property provides a spread of risk, taking into account the scheme's investment objectives, strategies and policy as stated in the constitutional document and the latest filed prospectus, and, in particular, any investment objective about return to the unitholders (whether from capital appreciation, income or both).

        Note Constitutional document is defined in r 3.1.1 and latest filed prospectus is defined in the glossary.

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

      • COLL 6.1.5 Investments by Money-Market Funds—QFC Qualified Investor Schemes

        (1) A QFC qualified investor scheme that is a money-market fund must comply with its primary investment objective, and the investment restrictions, mentioned in schedule 2 (Constitutional document content—QFC schemes), rule S2.33 (Primary investment objective etc—QFC money-market funds).

        Note Money-market fund is defined in r 1.3.12.
        (2) For the investment restrictions, an approved money-market instrument is a high-quality approved money-market instrument if—
        (a) it has been rated by at least 1 rating agency; and
        (b) it has been awarded the highest available credit rating by each rating agency that has rated it.

        Note Approved money-market instrument is defined in r 7.1.5. Rating agency is defined in INAP.
        (3) If an approved money-market instrument forms part of the scheme property of a QFC qualified investor scheme that is a money-market fund, the operator must monitor the instrument to ensure that it continues to be of high quality, taking into account both its credit risk and its final maturity.
        (4) A QFC qualified investor scheme that is a money-market fund must provide liquidity through same day or next day settlement.
        (5) The weighted average maturity of its investments must not exceed 60 days.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 6.1.6 Application of Ch 6 to Umbrella Schemes—QFC Qualified Investor Schemes

        (1) This chapter applies to each subscheme of a QFC qualified investor scheme that is an umbrella scheme as if it were a separate QFC qualified investor scheme.

        Note Subscheme and umbrella scheme are defined in r 1.2.11.
        (2) However, a subscheme of an umbrella scheme must not invest in another subscheme of the same umbrella scheme.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL Part 6.2 COLL Part 6.2 Particular kinds of Investments and Transactions—QFC Qualified Investor Schemes

      • COLL Division 6.2.A COLL Division 6.2.A Collective Investments Schemes— QFC qualified investor schemes

        • COLL 6.2.1 Investments In Schemes—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme must ensure that the scheme invests in units in a collective investment scheme (the second scheme) only if—
          (a) the second scheme is a QFC scheme; or
          (b) the second scheme is a non-QFC scheme, but the operator has taken reasonable care to decide that the second scheme meets all the following requirements:
          (i) it is subject to an independent annual audit conducted in accordance with international accounting standards;
          (ii) it has its value verified by a person independent of the scheme's operator in relation to each day on which dealing in the scheme's units may take place;
          (iii) there are mechanisms in place to enable unitholders of the scheme to redeem their units within a reasonable time;
          (iv) it is prohibited from having more than 15% of its value in units in schemes;
          (v) it operates in accordance with the principle of risk spreading.
          (2) If the second scheme is an umbrella scheme, subrule (1) applies to each subscheme as if it were a separate scheme.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 6.2.B COLL Division 6.2.B Derivatives, Forward Transactions and Commodity Contracts—QFC Qualified Investor Schemes

        • COLL 6.2.2 Delivery of Property Under Transactions in Derivatives etc—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme must take reasonable care to decide the following when entering into any transaction in derivatives, or any commodity contract, that may result in any asset becoming part of the scheme property:
          (a) if it is an asset in which the scheme property could be invested—that the transaction—
          (i) can be readily closed out; or
          (ii) would, at the expected time of delivery, relate to an asset that could be included in the scheme property under this chapter;
          (b) in any other case—that the transaction can be readily closed out.

          Note Derivative, commodity and close out are defined in the glossary.
          (2) If the operator makes a decision under subrule (1) in relation to an asset that proves to be incorrect, the operator may nevertheless acquire the asset for the scheme if the operator decides on reasonable grounds that the acquisition is in the interest of the unitholders.
          (3) An asset acquired under subrule (2) may form part of the scheme property until the position can be rectified.
          (4) Subrule (3) applies despite any other provision of this chapter.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.3 Valuation of OTC Derivatives—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme must ensure that a transaction by the scheme in an OTC derivative can be valued.

          Note OTC derivative is defined in the glossary.
          (2) For subrule (1), the transaction can be valued only if the operator having taken reasonable care decides that, if the transaction were to be entered into, the operator could value the investment throughout the life of the OTC derivative with reasonable accuracy—
          (a) on the basis of an up-to-date market value that the operator and independent entity have agreed is reliable; or
          (b) if such a value is not available—on the basis of a pricing model that the operator and independent entity have agreed uses an adequate recognised methodology.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.4 Cover for Transactions in Derivatives and Forward Transactions—QFC Qualified Investor Schemes

          (1) A transaction in derivatives or a forward transaction may be entered into by the operator of a QFC qualified investor scheme only if the maximum exposure, in terms of the principal or notional principal created by the transaction to which the scheme is or may be committed by another person, is covered globally under subrule (2).

          Note Derivative, principal and notional principal are defined in the glossary.
          (2) Exposure is covered globally if adequate cover from within the scheme property is available to meet the scheme's total exposure taking into account any reasonably foreseeable market movement.
          (3) The total exposure relating to derivatives held in the scheme property must not at any time exceed the scheme's net asset value.

          Note Net asset value is defined in the glossary.
          (4) No element of cover may be used more than once.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.5 Continuing Nature of Limits and Requirements for Derivatives and Forward Positions—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme must, as frequently as necessary to ensure compliance with rule 6.2.4 (Cover for transactions in derivatives and forward transactions—QFC qualified investor schemes), re-calculate the amount of cover required in relation to derivatives and forward positions.
          (2) Derivatives and forward positions may be kept in the scheme property only so long as they remain covered globally under rule 6.2.4 (2).
          (3) The operator must use a risk management process to monitor and measure as frequently as appropriate the risk of the scheme's derivatives and forward positions and their contribution to the scheme's overall risk profile.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL Division 6.2.C COLL Division 6.2.C Immovables—QFC Qualified Investor Schemes

        • COLL 6.2.6 Standing Independent Valuer—QFC Qualified Investor Schemes

          A QFC qualified investor scheme that holds, or proposes to hold, immovables as part of the scheme property must at all times have a valuer of the scheme (the standing independent valuer).

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

        • COLL 6.2.7 Requirements for Making Investments in Immovables— QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme must ensure that the scheme does not invest in an immovable to be held as part of the scheme property unless all the following requirements are met:
          (a) the immovable must be located in a jurisdiction identified in the latest filed prospectus;
          (b) the operator must have taken reasonable care to decide that the title to the interest to be acquired in the immovable is a good marketable title;
          (c) the standing independent valuer has valued the interest and the operator and independent entity have received a report on the valuation that states either—
          (i) that, in the valuer's opinion, the interest in the immovable could, if acquired by the scheme, be disposed of reasonably quickly at the valuation stated in the report; or
          (ii) that—
          (A) the immovable is adjacent to or in the vicinity of another immovable al included in the scheme property; and
          (B) in the valuer's opinion, the total value of the interests in the immovables would at least equal the total of the price payable for the interest in the immovable and the existing value of the interest in the other immovable.

          Note See r 6.2.10 (Reports on valuation of immovables before acquisition or disposal—QFC qualified investor schemes).
          (2) However, a report of the standing independent valuer must not be relied on to acquire the interest in the immovable if—
          (a) the interest is not acquired, or agreed by enforceable contract to be acquired, within 3 months after the date of the report; or
          (b) it is (or should reasonably be) apparent to the operator that the standing independent valuer's report cannot, or can no longer, reasonably be relied on; or
          (c) the price of the interest is, or becomes, more than 105% of the valuation of the interest stated in the report.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 6.2.8 Investments in Non-Qatari Immovables Through Intermediate Holding Vehicles—QFC Qualified Investor Schemes

          (1) An immovable located outside Qatar may be held by a QFC qualified investor scheme through an intermediate holding vehicle, or a series of intermediate holding vehicles, if—
          (a) the purpose of the vehicle, or each of the vehicles, is to enable the scheme to hold immovables located outside Qatar; and
          (b) the vehicle, or each of the vehicles, is wholly owned by the scheme, or by another intermediate holding vehicle or series of intermediate holding vehicles wholly owned by the scheme, unless and to the extent that the law of the jurisdiction where the immovable is located requires local ownership; and
          (c) the vehicle, or each of the vehicles, undertakes the purchase, sale and management of immovables on behalf of the scheme in accordance with the scheme's investment objectives, strategies and policy; and
          (d) the interests of the unitholders are otherwise adequately protected.

          Note Intermediate holding vehicle is defined in the glossary.
          (2) Any investment in an intermediate holding vehicle for the purpose of holding an immovable located outside Qatar must be treated for this chapter as if it were a direct investment in the immovable.
          (3) The operator of a QFC qualified investor scheme may, by the use of inter-company debt, transfer capital and income between the scheme and an intermediate holding vehicle of the scheme if—
          (a) the purpose of the transfer is for investment in immovables located outside Qatar or repatriation of income generated by such an investment; and
          (b) a record of inter-company debt is kept to provide an accurate audit trail; and
          (c) interest paid out on the debt instruments that gave rise to the inter-company debt is equivalent to the net rental income earned from the immovables less the intermediate holding vehicle's reasonable running costs (including tax).
          (4) If practicable, an intermediate holding vehicle of a QFC qualified investor scheme must have the same auditor and accounting reference date as the scheme.
          (5) The accounts of any intermediate holding vehicle of a QFC qualified investor scheme must be consolidated into the annual and half-yearly reports of the scheme.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.9 Additional Requirements for Immovables—QFC Qualified Investor Schemes

          (1) The operator must ensure that the following requirements are complied with in relation to interests in immovables held as part of the scheme property of a QFC qualified investor scheme:
          (a) the amount secured by mortgages over any immovable must not exceed 100% of the latest valuation of the scheme's interest in the immovable stated in a report by the scheme's standing independent valuer;
          (b) no option may be granted to a person to buy or obtain an interest in any immovable if this might unduly prejudice the ability to provide redemption;
          (c) the total of all premiums paid for options to purchase interests in immovables must not exceed 10% of the value of the scheme property in any 12-month period, calculated at the date of the granting of the option;
          (d) an interest in an immovable must not be disposed of unless—
          (i) the standing independent valuer has valued the interest; and
          (ii) the operator and independent entity have received a report on the valuation;

          Note See r 6.2.10 (Reports on valuation of immovables before acquisition or disposal—QFC qualified investor schemes).
          (e) each immovable must be adequately protected by appropriate insurance that is sufficient to cover its reinstatement.
          (2) However, a report of the standing independent valuer must not be relied on under subrule (1) (d) to dispose of an interest in an immovable if the interest is not disposed of, or agreed by enforceable contract to be disposed of, within 3 months after the date of the report.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 6.2.10 Reports on Valuation of Immovables Before Acquisition or Disposal—QFC Qualified Investor Schemes

          (1) This rule applies to a report by the standing independent valuer of a QFC qualified investor scheme in relation to the proposed acquisition or disposal for the scheme of an interest in an immovable.

          Note See the following provisions:
          •   r 6.2.7 (2) (c) (Requirements for making investments in immovables—QFC qualified investor schemes)
          •   r 6.2.9 (1) (d) (Additional requirements for immovables—QFC qualified investor schemes).
          (2) The report must—
          (a) include a brief description of the immovable, including— (i) its location and existing use; and
          (ii) the nature of the interest the scheme is proposed to acquire, or dispose of, in the immovable; and
          (iii) any encumbrances affecting the immovable; and
          (iv) whether the immovable is leased and, if leased, the terms of the lease and its expiry; and
          (v) the capital value of the immovable at the date of valuation; and
          (vi) the net monthly income (if any) from the immovable; and
          (vii) any other matters that may affect the immovable or the value of the interest; and
          (b) include all material details about the basis of valuation and the assumptions used; and
          (c) describe and explain the valuation methods used; and
          (d) if more than 1 valuation method is available—explain the reasons for choosing a particular method; and
          (e) outline the structure and condition of the relevant market, including an analysis of the supply and demand situation, the market trend, and investment activities; and
          (f) confirm the professional status of the standing independent valuer and that the report is prepared on a fair and unbiased basis; and
          (g) be dated as at the date the valuation is made.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.11 Valuation of Immovables Part of Scheme Property—QFC Qualified Investor Schemes

          (1) The following provisions apply in relation to the valuation of interests in immovables held as part of the scheme property of a QFC qualified investor scheme:
          (a) the operator must ensure that the standing independent valuer—
          (i) values, at least once a year, all the interests in immovables held as part of the scheme property, on the basis of a full valuation with physical inspection (including, if the immovable is or includes a building, internal inspection of the building); and
          (ii) gives the operator and independent entity a report on the valuation;
          (b) for paragraph (a), any inspection in relation to adjacent properties of a similar nature and value may be limited to the inspection of only a single representative property;
          (c) the operator must also ensure that the standing independent valuer—
          (i) values, at least once a month, all the interests in immovables held as part of the scheme property, on the basis of a review of the last full valuation (unless the valuer decides that the valuation of an interest in an immovable should be conducted on the basis mentioned in paragraph (a)); and
          (ii) gives the operator and independent entity a report on the valuation;

          Note Month is defined in the glossary.
          (d) if the operator or independent entity becomes aware of any matter that appears likely—
          (i) to affect the valuation of an interest in an immovable; or
          (ii) to cause the standing independent valuer to decide to value on the basis mentioned in paragraph (a) instead of on the basis mentioned in paragraph (c);

          it must immediately tell the standing independent valuer about the matter;
          (e) the operator must use its best endeavours to ensure that any other affected person immediately tells the standing independent valuer if the affected person becomes aware of a matter mentioned in paragraph (d).

          Note Affected person is defined in r 5.1.1.
          (2) The valuation of an interest in an immovable under this rule has effect for these rules until the next valuation of the interest under this rule.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.12 Annual and Other Periodic Valuation Reports—QFC Qualified Investor Schemes

          (1) This rule applies to a report by the standing independent valuer of a QFC qualified investor scheme under rule 6.2.11 (Valuation of immovables part of scheme property—QFC qualified investor schemes).
          (2) The report must—
          (a) include a brief description of each immovable in which the scheme holds an interest, including—
          (i) its location and existing use; and
          (ii) the nature of the interest the scheme holds in the immovable; and
          (iii) any encumbrances affecting the immovable; and
          (iv) whether the immovable is leased and, if leased, the terms of the lease and its expiry; and
          (v) the capital value of the immovable at the date of valuation; and
          (vi) the net monthly income (if any) from the immovable; and
          (vii) any other matters that may affect the immovable or the value of the interest; and
          (b) include all material details about the basis of valuation and the assumptions used; and
          (c) describe and explain the valuation methods used; and
          (d) if more than 1 valuation method is available—explain the reasons for choosing a particular method; and
          (e) outline the structure and condition of the relevant market, including an analysis of the supply and demand situation, the market trend, and investment activities; and
          (f) confirm the professional status of the standing independent valuer and that the report is prepared on a fair and unbiased basis; and
          (g) be dated as at the date the valuation is made.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.13 COLL 6.2.13 Basis of Valuation by Standing Independent Valuer—QFC Qualified Investor Schemes

          (1) Any valuation of an interest in an immovable by the standing independent valuer of a QFC qualified investor scheme must be—
          (a) on the basis of 'open market value' (as defined in the constitutional document and the latest filed prospectus); or
          (b) on another appropriate basis.

          (2) The basis on which the standing independent valuer makes a valuation is subject to the constitutional document and the latest filed prospectus.
          (3) In making a valuation, the standing independent valuer—
          (a) may treat the contents of any building as part of the building; and
          (b) must disregard any arrangement to dispose of an interest in an immovable forming part of the scheme property unless the valuer is satisfied on reasonable grounds that the arrangement is legally enforceable.
          Derived from QFCRA RM/2010-05 (as from 1st January 2011)

          • COLL 6.2.13 Guidance

            1 The constitutional document and latest filed prospectus would be expected to define 'open market value' using an authoritative text such as the latest edition of the Royal Institute of Chartered Surveyors' Appraisal and Valuation Standards (the 'Red Book').
            2 In considering whether valuation of an interest in an immovable by the standing independent valuer is made on another basis that is appropriate, the operator must consider whether the valuation was made in accordance with internationally accepted valuation principles, procedures and definitions as set out in the International Valuations Standards published by the International Valuation Standards Committee.
            Derived from QFCRA RM/2010-05 (as from 1st January 2011)

        • COLL 6.2.14 Appointment of Standing Independent Valuer—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme that holds, or proposes to hold, immovables as part of the scheme property must, as required from time to time and with the independent entity's approval, appoint a person as the standing independent valuer.
          (2) A person must not be appointed as the standing independent valuer unless—
          (a) the person conducts the business of valuing immovables; and
          (b) the operator and the independent entity are satisfied that the person has the skills, experience, qualifications and attributes to be the standing independent valuer of the scheme, having regard in particular to the scheme's investment objectives, strategies and policy; and
          (c) the person is independent of—
          (i) the operator and 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 operator, the independent entity or, for a CIC or CIP, the scheme.

          Note Governing body is defined in the glossary.

          Guidance for para (b)

          The operator and independent entity should be satisfied that the person meets all the following requirements:
          (a) the person is a fellow or associate (however described), or has key personnel who are fellows or associates (however described), of a relevant recognised professional body of surveyors or property valuers (for example, a member of the Royal Institute of Chartered Surveyors (MRICS), a RICS registered valuer or a body recognised by RICS);
          (b) the person has, or has access to, expertise relevant to the scheme and, in particular, knowledge and experience in the valuation of immovables of the relevant kind in the relevant area;
          (c) the person has robust internal controls and checks and balances to ensure—
          (i) the integrity of valuation reports; and
          (ii) that valuation reports are properly and professionally prepared in accordance with international best practice;
          (d) the person has adequate professional indemnity insurance;
          (e) the person does not have ownership or other commercial links with other persons providing services to the scheme (for example, investment advisers) that could impair the person's ability to provide independent and objective valuation services to the scheme.
          (3) Without limiting (2) (c), a person (A) is not independent of another person (B) if—
          (a) A has at any time during the last 2 years been involved in material business dealings with B (otherwise than in the exercise of their respective functions as the holders of positions in relation to any scheme); or
          (b) B has a material interest in A or A has a material interest in B.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 6.2.15 Standing Independent Valuer Not to Deal in Immovables etc—QFC Qualified Investor Schemes

          The standing independent valuer of a QFC qualified investor scheme must not be personally engaged, and must not have an associated person who is engaged, in finding immovables for the scheme or finding the scheme for immovables.

          Note Associated person is defined in the glossary.

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

        • COLL 6.2.16 Removal of Standing Independent Valuer—QFC Qualified Investor Schemes

          (1) The operator of a QFC qualified investor scheme may, with the independent entity's approval, remove the standing independent valuer at any time.
          (2) The operator of a QFC qualified investor scheme must remove a person as the standing independent valuer if—
          (a) a special resolution of the unitholders is passed to remove the person as the standing independent valuer; or

          Note Special resolution is defined in the glossary.
          (b) the person breaches rule 6.2.15 (Standing independent valuer not to deal in immovables etc—QFC qualified investor schemes); or
          (c) the person:
          (i) becomes insolvent;
          (ii) is wound up or put into liquidation; or
          (iii) is placed in receivership or administration; or
          (d) the person ceases to be eligible to be appointed as the standing independent valuer.
          (3) The power to remove the standing independent valuer under this rule has effect despite anything in any agreement between the valuer and all or any of the following:
          (a) the operator;
          (b) the independent entity;
          (c) the scheme.
          Amended by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 6.3 COLL Part 6.3 Stock Lending and Repos—QFC Qualified Investor Schemes

      • COLL 6.3.1 Permitted Stock Lending and Repos—QFC Qualified Investor Schemes

        (1) The independent entity of a QFC qualified investor scheme may, at the operator's request, enter into a stock lending arrangement or repo agreement.

        Note Stock lending arrangement and repo agreement are defined in the glossary.
        (2) Subrule (1) is subject to the constitutional document and the latest filed prospectus.
        (3) The independent entity must ensure that the value of any collateral for a stock lending arrangement is at all times at least equal to the value of the securities transferred by the independent entity.
        (4) If the validity of any collateral expires, the independent entity's duty under subrule (3) is satisfied if the independent entity or the operator, as appropriate, takes reasonable care to ensure that sufficient collateral will be transferred by close of business on the day of the expiry.

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

    • COLL Part 6.4 COLL Part 6.4 Borrowing—QFC Qualified Investor Schemes

      • COLL 6.4.1 Borrowing—QFC Qualified Investor Schemes

        (1) The operator of a QFC qualified investor scheme must—
        (a) ensure that the scheme's total borrowing does not, on any day, exceed the permitted percentage of the scheme's net asset value; and

        Note Borrowing and net asset value are defined in the glossary.
        (b) ensure that any further borrowing restrictions in the constitutional document and latest filed prospectus are complied with; and
        (c) take reasonable care to ensure that arrangements are in place that will enable borrowings to be closed out to ensure that paragraphs (a) and (b) are complied with.

        Note Close out is defined in the glossary.
        (2) For subrule (1) (a), the permitted percentage is—
        (a) 100 %; or
        (b) if the Regulatory Authority, by written notice, sets a different percentage (whether higher or lower) for the scheme (whether at the time of registration or later) or for QFC qualified investor schemes that include the scheme—the percentage set.
        (3) If the Regulatory Authority sets a different percentage by notice under subrule (2) (b), the authority must—
        (a) publish the notice on an approved website; and
        (b) give a copy of the notice to the operator of each scheme to which the notice applies.

        Note Approved website is defined in INAP.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)