• 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)