• COLL Division 7.4.B COLL Division 7.4.B Money-Market Instruments—QFC Retail Schemes

    • COLL 7.4.4 Investments in Approved Money-Market Instruments not Admitted to Eligible Markets etc—QFC Retail Schemes

      (1) This rule applies to an approved money-market instrument that is not admitted to or dealt in on an eligible market.

      Note Approved money-market instrument is defined in r 7.1.5 and eligible market is defined in r 7.1.7.
      (2) A QFC retail scheme may invest in the approved money-market instrument if all the following requirements are met:
      (a) the instrument is—
      (i) issued or guaranteed by—
      (A) the State or the central government of a zone 1 country; or
      (B) the Qatar Central Bank or the central bank of a zone 1 country; or
      (C) a multilateral development bank; or

      Note Zone 1 country and multilateral development bank are defined in INAP.
      (ii) issued or guaranteed by—
      (A) a regional or local authority of the State or a zone 1 country; or
      (B) an entity owned by an entity mentioned in subparagraph (i) (A) or (ii) (A) if the first entity exercises regulatory or other non-commercial functions; or
      (iii) issued by an entity if any of its securities are dealt with on an eligible market; or
      (iv) issued or guaranteed by an entity that is subject to, and complies with, prudential rules, and meets 1 or more of the following requirements:
      (A) it is located in Qatar or a zone 1 country;
      (B) it has at least investment grade rating given by a rating agency;

      Note Rating agency is defined in INAP.
      (C) on the basis of an in-depth analysis of the entity, it can be demonstrated that the prudential rules applying to the entity are at least as stringent as those applied by the Regulatory Authority in the QFC;
      (b) appropriate information in accordance with subrules (3) to (5) is available for the instrument;
      (c) the instrument is freely transferable.
      (3) If the approved money-market instrument is issued or guaranteed by an entity mentioned in subrule (2) (a) (i), or issued by an entity mentioned in subrule (2) (a) (ii) and guaranteed by an entity mentioned in subrule (2) (a) (i), information must be available on the issue or the issue programme, or on the legal and financial situation of the issuer before the issue of the instrument.
      (4) If the approved money-market instrument is issued or guaranteed by an entity mentioned in subrule (2) (a) (ii) but is not guaranteed by an entity mentioned in subrule (2) (a) (i), or is issued by an entity mentioned in subrule (2) (a) (iii), all the following information must be available:
      (a) information on the issue or the issue programme, or on the legal and financial situation of the issuer before the issue of the instrument;
      (b) updates of that information on a regular basis and whenever a significant event happens;
      (c) available and reliable statistics on the issue or the issue programme, or other data enabling an appropriate assessment of the credit risks related to investment in the instruments.

      Guidance for r (4) (b) and r (5) (b)

      Regular updates of information should normally happen on at least an annual basis.
      (5) If the approved money-market instrument is issued or guaranteed by an entity mentioned in subrule (2) (a) (iv), all the following information must be available:
      (a) information both on the issue or the issue programme, and the legal and financial situation of the issuer before the issue of the instrument, verified by appropriately qualified third parties not subject to instructions from the issuer;

      Guidance for para (a)

      The appropriately qualified third parties should specialise in the verification of legal or financial documentation and be composed of persons meeting professional standards of integrity.
      (b) updates of that information on a regular basis and whenever a significant event happens;
      (c) available and reliable statistics on the issue or the issue programme.
      Derived from QFCRA RM/2010-05 (as from 1st January 2011)