• COLL 8.6.7 COLL 8.6.7 Allocation of Payments to Income or Capital—QFC Retail Schemes

    (1) The operator of a QFC retail scheme must, in accordance with the latest filed prospectus, decide whether a payment is to be made from the income property or capital property of the scheme.

    Note Latest filed prospectus, income property and capital property are defined in the glossary.
    (2) In making a decision under subrule (1), the operator must—
    (a) have appropriate regard to whether the nature of the cost is income related or capital related and the scheme's investment objectives, strategies and policy; and
    (b) agree with the independent entity about how the payment should be treated.
    (3) If, for any class of units for any annual accounting period, the amount of the income property is less than the income distributed, the shortfall must, as from the end of that period, be charged to the capital account and must not later be transferred to the income account.
    Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL 8.6.7 Guidance

      Any payment as a result of effecting transactions for the scheme should be made from the capital property of the scheme. All other payments should be made from income property in the first instance, but may be transferred to the capital account in accordance with rule 8.6.7 (1).

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