• COLL 10 COLL 10 Financial Promotions and Investment Activities—All Schemes

    • COLL Part 10.1 COLL Part 10.1 Financial Promotions Generally—All Schemes

      • COLL 10.1.1 Declaration of Non-QFC Retail Customer Schemes

        (1) The Regulatory Authority may, by written notice published on an approved website, declare that a non-QFC scheme established in a stated jurisdiction that is of a stated type is a retail customer scheme.

        Note Approved website is defined in INAP.
        (2) The Regulatory Authority must not specify a type of scheme under subrule (1) unless satisfied that—
        (a) all schemes of that type are—
        (i) required to be registered, approved or licensed (however described) under the law of the jurisdiction in which they are established; and
        (ii) subject to appropriate regulation by a regulatory or governmental entity of that jurisdiction for the purpose of consumer protection; and
        (b) the operators of all schemes of that type are—
        (i) required to be authorised or licensed (however described) under the law of that jurisdiction; and
        (ii) subject to appropriate regulation by a regulatory or governmental entity of that jurisdiction for the purpose of consumer protection.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.1.2 Certain Financial Promotions only to Qualified Investors Etc—QFC Qualified Investor Schemes

        (1) An authorised firm must not make or approve a financial promotion in relation to a QFC qualified investor scheme if the financial promotion is addressed to, or disseminated in such a way that it is likely to be received by, a person who is not a qualified investor for the firm.

        Note Qualified investor, for an authorised firm, is defined in r 1.2.12 (3).
        (2) An authorised firm must not conduct a relevant investment activity for a customer in or from the QFC in relation to units in a QFC qualified investor scheme unless the customer is a qualified investor for the firm.

        Note Relevant investment activity is defined in the Glossary.
        (3) For this rule, qualified investor includes a person who is a retail customer for the authorised firm if the firm believes, on reasonable grounds, that the firm could classify the person under CIPR as a business customer for the firm.

        Note 1 Retail customer, for an authorised firm, is defined in r 1.2.12 (5).

        Note 2 Business customer is defined in the Glossary.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.1.3 Certain Financial Promotions only to Qualified Investors Etc—Non-QFC Qualified Client Schemes

        (1) An authorised firm must not make or approve a financial promotion in relation to a non-QFC qualified client scheme if the financial promotion is addressed to, or disseminated in such a way that it is likely to be received by, a person who is not a qualified investor for the firm.

        Note 1 Non-QFC qualified client scheme is defined in r 1.4.2.

        Note 2 Qualified investor, for an authorised firm, is defined in r 1.2.12 (3).
        (2) An authorised firm must not conduct a relevant investment activity for a customer in or from the QFC in relation to units in a non-QFC scheme unless:
        (a) the scheme is a non-QFC retail customer scheme; or
        (b) the customer is a qualified investor for the firm.

        Note Relevant investment activity is defined in the Glossary and non-QFC retail customer scheme is defined in rule 1.4.1.
        (3) For this rule, qualified investor includes a person who is a retail customer for the authorised firm if the firm believes, on reasonable grounds, that the firm could classify the person under CIPR as a business customer for the firm.

        Note 1 Retail customer, for an authorised firm, is defined in r 1.2.12 (5).

        Note 2 Business customer is defined in the Glossary.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.1.4 Part 10.1 additional to CIPR

        This Part is additional to, and does not limit, CIPR.

        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

    • COLL Part 10.2 COLL Part 10.2 Financial Promotions—Non-QFC Schemes

      • COLL 10.2.1 What is a Complying Disclaimer for a Non-QFC Scheme?

        A complying disclaimer for a non-QFC scheme is a written notice that contains statements to the effect of the following:

        (a) the scheme is a collective investment scheme that is not registered in the QFC or regulated by the Regulatory Authority;
        (b) any prospectus for the scheme, and any related documents, have not been reviewed or approved by the Regulatory Authority;
        (c) investors in the scheme may not have the same access to information about the scheme that they would have to information about a collective investment scheme registered in the QFC;
        (d) recourse against the scheme, and those involved with it, may be limited or difficult and may have to be pursued in a jurisdiction outside the QFC.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.2.2 Restrictions Generally on Financial Promotions—All Non-QFC Schemes

        (1) An authorised firm must not make or approve a financial promotion in relation to a non-QFC scheme unless the scheme has a written constitution (however described) and written prospectus.

        Note Writing and prospectus are defined in the glossary.
        (2) An authorised firm must not conduct relevant investment activities in or from the QFC in relation to units in a non-QFC scheme unless the scheme has a written constitution (however described) and written prospectus.
        (3) Subrule (2) does not apply in relation to an own account transaction of an authorised firm.

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

      • COLL 10.2.3 Prospectus and disclaimer must be provided etc — all non-QFC schemes

        (1) An authorised firm must not sell, or arrange for the sale of, a unit in a non-QFC scheme to a customer unless it has given the customer, not later than a reasonable time before the customer becomes contractually bound in relation to the sale of the unit:
        (a) a prospectus for the scheme; and
        (b) a complying disclaimer for the scheme.

        Note Customer and prospectus are defined in the Glossary and complying disclaimer is defined in rule 10.2.1.
        (2) If an authorised firm in the exercise of its discretion buys a unit in a non-QFC scheme for a customer, the firm must:
        (a) tell the customer that the customer may request a prospectus for the scheme; and
        (b) give the customer a prospectus for the scheme on request.
        (3) If an authorised firm gives a prospectus for a non-QFC scheme to a customer under subrule (2), the firm must also give the customer a complying disclaimer for the scheme.
        (4) Subrule (2) (a) does not apply in relation to the purchase by an authorised firm of a unit in a non-QFC scheme for a customer if:
        (a) the firm has told the customer, in its terms of business, or in periodic statements, given to the customer under CIPR, that the customer may request a prospectus for any non-QFC scheme in which the firm buys units for the customer under a discretionary management agreement; and
        (b) the firm has given the customer a complying disclaimer for the scheme, all non-QFC schemes or a class of non-QFC schemes in which the scheme is included.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.2.4 Complying disclaimer must be given with other documents under CIPR — all non-QFC schemes

        (1) This rule applies if an authorised firm is required under CIPR to give a key information document to a customer in relation to a non-QFC scheme.
        (2) The authorised firm must, at the same time as it gives the document to the customer, give the customer a complying disclaimer.

        Note Complying disclaimer is defined in rule 10.2.1.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.2.5 Authorised firms must pass on documents etc — all non-QFC schemes

        (1) This rule applies if:
        (a) an authorised firm either:
        (i) sells, or arranges for the sale of, a unit in a non-QFC scheme to a customer; or
        (ii) buys, or arranges to buy, a unit in a non-QFC scheme for a customer; and
        (b) the firm later receives a document or information about the scheme from its operator.
        (2) The authorised firm must give the document or information to the customer.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.2.6 Quarterly Returns for Financial Promotions Etc—All Non-QFC Schemes

        (1) This rule applies to an authorised firm in relation to a quarter if, during the quarter, the firm—
        (a) makes or approves a financial promotion in relation to a non-QFC scheme; or
        (b) conducts relevant investment activities in or from the QFC in relation to units in a non-QFC scheme.

        Note Relevant investment activity is defined in the glossary.
        (2) The authorised firm must give the Regulatory Authority a return under this rule for the quarter within 1 month after the day the quarter ends.
        (3) The return must include the following information in relation to each non-QFC scheme in relation to which the firm made or approved a financial promotion, or conducted relevant investment activities in or from the QFC, during the quarter:
        (a) the scheme's name;
        (b) the jurisdiction in which the scheme was established;
        (c) whether the scheme is a non-QFC qualified client scheme or non-QFC retail customer scheme;

        Note Non-QFC retail customer scheme is defined in r 1.4.1 and non-QFC qualified client scheme is defined in r 1.4.2.
        (d) if the scheme is a non-QFC qualified client scheme—whether the scheme or its operator is subject to regulation by a regulatory or governmental entity of the jurisdiction in which it is established or any other jurisdiction and, if so, the jurisdiction, the name of the regulating entity and the nature of the regulation;
        (e) whether the following rules were complied with in relation to the scheme during the quarter:
        •   rule 10.2.3 (Prospectus and disclaimer must be provided etc—all non-QFC schemes)
        •   rule 10.2.4 (Complying disclaimer must be given with other documents under CIPR—all non-QFC schemes)
        •   rule 10.2.5 (Authorised firms must pass on documents etc—all non-QFC schemes).
        (4) In this rule:

        quarter means a 3-month period ending on 31 March, 30 June, 30 September or 31 December.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.2.7 Recordkeeping by authorised firms — all non-QFC schemes

        An authorised firm must keep:

        (a) a copy of each prospectus for a non-QFC scheme that it gives to customers for at least 6 years after the day it is last given to a customer;
        (b) a copy of each complying disclaimer for a non-QFC scheme that it gives to customers for at least 6 years after the day it is last given to a customer;
        (c) a record of the version of each prospectus for a non-QFC scheme that it gives to each customer, and the day it is given to the customer, for at least 6 years after the day it is given to the customer; and
        (d) a record of the version of each complying disclaimer for a non-QFC scheme that it gives to each customer, and the day it is given to the customer, for at least 6 years after the day it is given to the customer.

        Note Customer and prospectus are defined in the Glossary and complying disclaimer is defined in rule 10.2.1.
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 10.2.8 Part 10.2 additional to CIPR

        This Part is additional to, and does not limit, CIPR.

        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

    • COLL Part 10.3 COLL Part 10.3 Additional Retail Customer Requirements—Non-QFC Retail Customer Schemes

      • COLL 10.3.1 Application—pt 10.3

        (1) This part applies to an authorised firm in relation to a retail customer of the firm if the firm conducts a relevant investment activity for the retail customer in or from the QFC in relation to units in a non-QFC retail customer scheme.

        Note 1 Retail customer, for an authorised firm, is defined in r 1.2.12 (5).

        Note 2 Relevant investment activity is defined in the glossary.

        Note 3 Non-QFC retail customer scheme is defined in r 1.4.1. An authorised firm must not conduct a relevant business activity for a retail customer in relation to units in a non-QFC scheme that is not a retail customer scheme (see r 10.1.3 (2)).
        (2) However, this part ceases to apply to the authorised firm in relation to the retail customer if the retail customer does not become, or ceases to be, a unitholder of the non-QFC retail customer scheme.
        Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 10.3.2 Facilities to be Maintained in QFC—Non-QFC Retail Customer Schemes

        (1) The authorised firm must maintain facilities that satisfy the requirements of this part.
        (2) The authorised firm must take reasonable steps to ensure that the facilities are available during ordinary business hours on each business day.
        (3) For this part, a facility is a place of business.
        (4) For this part, it is sufficient if a facility is maintained by a person other than the authorised firm if the facility is maintained under arrangements with the firm.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.3.3 Retail Customer to be Informed about Availability of Facilities—Non-QFC Retail Customer Schemes

        Before conducting relevant investment activities in relation to units in the non-QFC retail customer scheme for the retail customer, the authorised firm must give the retail customer a written notice that tells the retail customer about—

        (a) the facilities available under this part; and
        (b) the address of the facilities and when the facilities are available.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.3.4 Documents to be Available in QFC—Non-QFC Retail Customer Schemes

        (1) The authorised firm must maintain facilities in the QFC to allow the retail customer to inspect, and obtain copies of, the following documents:
        (a) the constitution (however described) of the scheme;
        (b) any instrument amending that constitution;
        (c) the latest prospectus of the scheme;
        (d) the latest annual and interim reports for the scheme.
        (2) If a document mentioned in subrule (1) is not in a required language, a translation of the document in that language must also be available for inspection and copies of the translation must also be available to be obtained.
        (3) The documents mentioned in subrule (1) (including any translation in a required language) must be available for inspection free of charge.
        (4) Copies of the latest prospectus (including any translation in a required language) must be available free of charge.
        (5) Copies of other documents mentioned in subrule (1) (including any translation in a required language) must be available for no more than the reasonable cost of producing the copy.
        (6) A translation of a document available under this rule must clearly state—
        (a) the name and address of the person who made the translation; and
        (b) the person's qualifications for making the translation.
        (7) In this rule:

        required language, for a document, means—
        (a) English; or
        (b) any other language if the Regulatory Authority, by written notice published on an approved website, requires the document to be available in that language for this rule.

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

      • COLL 10.3.5 Pricing and Redemption Facilities to be Available in QFC— Non-QFC Retail Customer Schemes

        (1) The authorised firm must maintain facilities in the QFC—
        (a) where the retail customer may obtain information in a required language about prices of units in the scheme; and
        (b) if the retail customer is a unitholder of the scheme—where or through which the retail customer may redeem units and obtain payment.
        (2) The authorised firm is taken to comply with subrule (1) (b) if—
        (a) unitholders can sell their units on an exchange at a price not significantly different from the net asset value of the property to which the units relates; and
        (b) it tells the retail customer about the availability of the exchange.
        (3) Subrule (1) (b) does not entitle the retail customer to have units redeemed (or sold as mentioned in subrule (2)) immediately after making a demand to that effect.
        (4) In this rule:

        required language, for information, means—
        (a) English; or
        (b) any other language if the Regulatory Authority, by written notice published on an approved website, requires the information to be available in that language for this rule.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.3.6 Other Information Facilities to be Available in QFC—Non-QFC Retail Customer Schemes

        (1) The authorised firm must maintain facilities in the QFC to tell the retail customer, on request and in a required language—
        (a) the nature of the rights represented by the units in the scheme; and
        (b) whether persons other than the unitholders can vote at meetings of unitholders and, if so, who those persons are.
        (2) In this rule:

        required language, for information, means—
        (a) English; or
        (b) any other language if the Regulatory Authority, by written notice published on an approved website, requires information to be available in that language for this rule.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL 10.3.7 Complaint Facilities to be Available in QFC—Non-QFC Retail Customer Schemes

        The authorised firm must maintain facilities in the QFC to allow the retail customer to make complaints to the operator about the operation of the scheme.

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