• 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).