• COLL 12 COLL 12 QFC retail property funds

    Amended by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.1 COLL Part 12.1 General

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.1 Introduction

        (1) In addition to UCITS type schemes, Islamic funds and money-market funds, QFC schemes may be property funds, feeder funds and funds of funds.
        (2) This Chapter sets out specific requirements that apply to QFC retail property funds, including real estate investment trusts or REITs.
        Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.2 Concepts relating to property funds

        (1) A property fund may be a qualified investor scheme or a retail scheme. A property fund may or may not be listed in the Qatar Stock Exchange or in any other regulated exchange.

        Note Qualified investor scheme and retail scheme are defined in rules 1.3.2 and 1.3.3 respectively. A REIT must be listed in the Qatar Stock Exchange or another regulated exchange (see rule 12.6.2 (2) (b)).
        (2) A property fund that is a qualified investor scheme must be open-ended so as to allow redemption of units. A property fund that is a retail scheme may be closed-ended or open-ended.

        Note For open-ended scheme and closed-ended scheme, see rule 1.2.10. A REIT must be closed-ended (see rule 12.6.2 (2) (a)).
        Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.3 Application of Chapter 12

        (1) This Chapter applies only to a QFC retail scheme that is a property fund (QFC retail property fund). REITs are a subset of QFC retail property funds.
        (2) This Chapter applies to each subscheme of a QFC retail property fund that is an umbrella scheme as if each subscheme were a separate retail property fund. However, a REIT cannot be an umbrella scheme.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.4 Permissible investments—QFC retail property funds

        (1) At least 75% of the gross asset value of a QFC retail property fund must at all times be invested in at least 3 immovables that generate recurrent rental income.

        Guidance

        The Regulatory Authority expects the choice of immovables to be appropriate for, and consistent with, fund diversification and risk-spreading.
        (2) Subject to subrule (3), the remaining 25% of the gross asset value of the fund may be invested (for purposes of liquidity and diversification) in a combination of the following investments:
        (a) immovables (whether or not the immovables generate recurrent rental income);
        (b) property-related assets;
        (c) units in other property funds;
        (d) cash;
        (e) government or public securities.
        (3) For subrule (2):
        (a) no more than 5% of the remaining 25% may be invested in a combination of property-related assets and units in other property funds (but only if the investment or investments do not result in a fundamental change in the fund's overall risk profile); and
        (b) no more than 5% of the remaining 25% may be invested in assets, units, government or public securities issued by a single issuer.
        (4) Subrules (1) to (3) do not apply:
        (a) during the initial 6-month period of the fund's operation;
        (b) during any period specified for the purpose in the fund's prospectus; or
        (c) during any period approved for the purpose by special resolution of the unitholders.
        (5) If a REIT invests in property-related assets, units in other property funds, government or public securities under subrule (2), the assets, units or securities must be listed and traded on a recognised exchange (within the meaning of the Banking Business Prudential Rules 2014).

        Note In the Banking Business Prudential Rules 2014 recognised exchange means:
        (a) one of over 100 exchanges listed in Schedule 1 of those rules (including the major exchanges in the Gulf region); or
        (b) an exchange listed in a notice published by the Regulatory Authority on an approved website.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.5 Use of certain names—QFC retail property funds

        (1) The operator of a QFC scheme must ensure that the name of the scheme, or of a class of units, does not state or imply that the scheme is a property fund unless the scheme is a property fund.
        (2) The operator of a QFC umbrella scheme must ensure that the name of a subscheme, or of a class of units in a subscheme, does not state or imply that the subscheme is a property fund unless the subscheme is a property fund.

        Note 1 Other restrictions on the use of the term "real estate investment trust" or REIT may apply (see rule 12.6.2 (1)).

        Note 2 A REIT cannot be an umbrella scheme (see rule 12.1.3 (2)).
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.1.6 Other provisions continue to apply to QFC retail property funds that are not REITs

        (1) Except as set out in column 3 of table 12.1.6A, the provisions of these rules described in columns 1 and 2 continue to apply to a QFC retail property fund that is not a REIT.

        Note For the provisions of these rules that apply to REITs, see rule 12.6.4 and table 12.6.4A.
        (2) Neither table 12.1.6A nor 12.1.6B is exhaustive. Each table is a guide for those who intend to establish and register a QFC retail property fund that is not a REIT.

        Table 12.1.6A Application of provisions to QFC retail property funds

        column 1
        applicable provisions
        column 2
        description of contents of provisions
        column 3
        provisions that do not apply
        Chapter 1 general provisions, basic concepts and key terms  
        Chapter 2 registration of scheme  
        Chapter 3 constitutional requirements and units Division 3.2.B rules 3.1.1 (b) and 3.2.12
        Chapter 4 operator and independent entity  
        Chapter 5 investor relations, affected persons, prospectus, approvals, meetings, reports, accounts and auditors Divisions 5.4.A, 5.5.A and 5.6.B
             
        Chapter 7 investment and borrowing Parts 7.2, 7.3, 7.4, 7.5 and 7.6

        rules 7.7.2, 7.7.3 and 7.7.6
        Chapter 8 operating duties and responsibilities, dealing, valuation pricing, register, outsourcing, payments, accounting and income distribution Divisions 8.1.A, 8.2.A, 8.2.C and 8.6.A
        Chapter 9 suspension, winding up and transfer schemes  
        Chapter 10 financial promotions and investment activities Parts 10.2 and 10.3
        Chapter11 other provisions and fees Part 11.3
             
        Schedule 1 arrangements that are not collective investment schemes  
        Schedule 2 contents of constitutional document Parts S2.2, S2.3 and S2.4
             
        Schedule 4 contents of prospectus rules S4.23 and S4.24
        (3) CIPR also deals with collective investment schemes, and the definitions of packaged investment product and issuer in those rules include a unit in a collective investment scheme and the operator of a collective investment scheme, respectively. The provisions of CIPR described in table 12.1.6B may, among others, apply to QFC retail property funds.

        Table 12.1.6B CIPR provisions that may apply to QFC retail property funds

        column 1
        provisions
        column 2
        description of contents of provisions
           
        rules 3.5.7 and 3.5.9 inducements
        Part 3.6 personal account transactions
        Parts 4.2 and 4.3 advertisements, personal contacts and telephone contacts
        Part 4.4 initial disclosure document/terms of business
        rule 5.3.4 independent investment advice
        Part 5.4 and Schedule 1 key information document — form and contents
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

      • COLL 12.1.7 Offer of QFC retail property funds

        An offer of units in a listed QFC retail property fund (including a REIT) must be in accordance with the IOSCO principles and the practices and procedures of the Qatar Stock Exchange or other regulated exchange where it is listed.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.2 COLL Part 12.2 Constitutional document and prospectus—QFC retail property funds

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.2.1 Extra constitution requirements—QFC retail property funds

        In addition to the matters required under Schedule 2 (Constitutional document content—QFC schemes), the constitutional document of a QFC retail property und must include the following:

        (a) a statement that the fund is a QFC retail property fund;
        (b) a statement whether the fund is a closed-ended scheme or an open-ended scheme;
        (c) a statement whether the aim of the fund is to spread investment risks.
        (d) a statement that the fund invests in at least 3 immovables that generate recurrent rental income.

        Note For statements on restrictions on investment and borrowing, see rule S2.11. See also rule 12.1.4 on permissible investments and rule 12.5.9 for borrowing limits.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.2.2 Prohibited amendments of constitutional document—QFC retail property funds

        The constitutional document of a QFC retail property fund must not be amended in such a way that the fund ceases to be a property fund.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.3 COLL Part 12.3 Custody, joint ownership and intermediate holding vehicles—QFC retail property funds

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.1 Operator may make alternative custody arrangements for immovables in certain jurisdictions—QFC retail property funds

        (1) For the purpose of meeting legal requirements in relation to the ownership of an immovable in the jurisdiction where the immovable is located, the operator of a QFC retail property fund may make alternative arrangements for the custody of the immovable.

        Example

        This rule may apply if legal title to an immovable cannot be held in Qatar or another GCC country because of the law of another jurisdiction. In such a situation, custody of the immovable by the independent entity may not be possible, and arrangements for declarations of trust, indemnities and resolutions relating to the transfer of custody may have to be made.
        (2) The arrangements must not give the operator unfettered control over the scheme property. If the arrangements involve joint ownership or the use of intermediate holding vehicles, the arrangements must be in accordance with whichever of rules 12.3.2 to 12.3.6 apply.
        (3) The operator must satisfy the Regulatory Authority that the arrangements:
        (a) are for the purpose stated in subrule (1);
        (b) comply with subrule (2); and
        (c) are legally effective in the QFC and in the jurisdiction where the immovable is located.

        Note Under rule 4.2.6 (6) (a), the independent entity of a property fund is not responsible in relation to an immovable that is subject to alternative arrangements in accordance with this rule.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.2 Joint ownership arrangements—QFC retail property funds

        (1) A QFC retail property fund may enter into an arrangement for the joint ownership of an immovable in accordance with this rule (joint ownership arrangement).
        (2) Before a QFC retail property fund enters into a joint ownership arrangement, the operator of the fund:
        (a) must be able to demonstrate that the arrangement is in the interests of the unitholders;
        (b) must ensure that, under the arrangement:
        (i) the fund has a majority stake or holding in relation to the arrangement;
        (ii) the fund has, at all times, more than 50% ownership and control of each immovable subject to the arrangement;
        (iii) the fund has the freedom to dispose of its interest in each immovable; and
        (iv) the liability of the fund does not exceed the percentage of its interest in the arrangement;
        (c) must ensure that due diligence is conducted to identify restrictions and constraints that may limit the fund's direct ownership of a 100% interest in any immovable subject to the arrangement; and
        (d) must obtain a legal opinion about the arrangement.
        (3) An investment in an intermediate holding vehicle for the purpose of holding an immovable (whether wholly or through a joint ownership arrangement) must be treated as if it were a direct investment in the immovable. The investment must be valued as an immovable under rule 12.5.6.
        (4) Despite subrule (2) (b) (i), the Regulatory Authority may permit a QFC retail property fund to enter into a joint ownership arrangement in which the fund does not have a majority stake or holding if:
        (a) the authority is satisfied that the interests of the unitholders are adequately protected (for example, the other joint owner of the property is a public sector entity in Qatar); or
        (b) the law of the jurisdiction where the immovable is located requires local ownership or control of 51% or more.
        (5) Despite subrule (2) (b) (ii), the Regulatory Authority may permit a QFC retail property fund to hold title to an immovable under a joint ownership arrangement, but without holding more than 50% ownership and control of the immovable, if the authority is satisfied that the interests of the unitholders are adequately protected.
        (6) For subrule (2) (d), the legal opinion must include:
        (a) a description of the significant terms of the arrangement;
        (b) a statement whether the fund will have good marketable legal and beneficial title in each immovable subject to the arrangement;
        (c) a description of the equity and profit-sharing arrangements of the parties to the contract;
        (d) a statement that the contract and joint ownership arrangements are legal, valid, binding and enforceable under applicable law;
        (e) a statement that all necessary licences and consents required in the jurisdiction where the immovable is located have been obtained;
        (f) any restriction on the fund disposing of its interest, in whole or in part, in the immovable; and
        (g) if relevant, the implication of any foreign law that may limit the fund's direct ownership of a 100% interest in the immovable.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.3 Information about joint ownership arrangements—QFC retail property funds

        The operator of a QFC retail property fund that has entered into a joint ownership arrangement in an immovable must include in the next operator's report under rule 5.6.13:

        (a) the ownership structure of the fund's interest and the material terms of the arrangements, including:
        (i) restrictions on the fund disposing of its interest; and
        (ii) the effect of the restrictions on the value of the interest;
        (b) the identity, background and ownership of the other legal and beneficial owners of the immovable;
        (c) any previous transactions by the other owners with the fund in relation to the immovable;
        (d) agreements for remuneration, fee-sharing and other financial matters that have been, or will be, entered into between the fund and the other owners or their associates;
        (e) a summary of the legal opinion required by rule 12.3.2 (2) (d) in relation to the immovable;
        (f) if there are any restrictions on foreign ownership of the immovable subject to the arrangement:
        (i) the nature and duration of the restrictions;
        (ii) the effect of the restrictions on the operations and financial position of the fund as a whole; and
        (iii) the standing independent valuer's opinion and evaluation of the effect of the restrictions on the value of the immovable; and
        (g) any other information that the unitholders may reasonably require to make an informed judgment about the arrangements.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.4 Use of intermediate holding vehicles to hold immovables—QFC retail property funds

        (1) Subject to subrule (2), an immovable may be held by a QFC retail property fund through 1 or 2 intermediate holding vehicles, if:
        (a) the purpose of each vehicle is to enable the fund to hold immovables; and
        (b) either:
        (i) the vehicle or each vehicle is majority-owned or majority-held by the fund; or
        (ii) an intermediate holding vehicle that is majority-owned or majority-held by the fund (the first vehicle) holds the immovable through another intermediate holding vehicle (the second vehicle) for the sole purpose of directly holding the immovable for the fund (or arranging financing for the fund) and the second vehicle is majority-owned or majority-held by the first.

        Note An investment in an intermediate holding vehicle for the purpose of holding an immovable must be treated as if were a direct investment in the immovable, see rule 12.3.2 (3).
        (2) The Regulatory Authority may permit a QFC retail property fund to hold an immovable through a series of more than 2 intermediate holding vehicles if the operator of the fund satisfies the authority that it is necessary to do so (for example when it is necessary for the fund to meet a legal or regulatory requirement in another jurisdiction).

        Guidance

        In giving permission for a fund to have more than 2 intermediate holding vehicles, the Regulatory Authority would be guided by, among others, the structure of the fund and whether the structure is clear, easily understood and transparent to retail investors.
        (3) If practicable, an intermediate holding vehicle of a QFC retail property fund must have the same auditor and accounting reference date as the fund.
        (4) The accounts of any intermediate holding vehicle of a QFC retail property fund must be consolidated into the annual and half-yearly reports of the fund.
        (5) Despite subrule (1) (b), the Regulatory Authority may permit a QFC retail property fund (or the first intermediate holding vehicle) to hold an immovable through an intermediate holding vehicle even if the fund or vehicle does not have a majority ownership or holding if the authority is satisfied that less than majority ownership or holding is reasonable in the circumstances and the interests of the unitholders are adequately protected.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.5 Duty of operator in relation to intermediate holding vehicles

        (1) The operator of a QFC retail property fund that uses an intermediate holding vehicle or vehicles to hold immovables must ensure that:
        (a) neither the constitution of the intermediate holding vehicle or vehicles nor the organisation, transactions or activities of any of the vehicles contravenes a requirement of this Chapter;
        (b) subject to subrule (3), the governing body of each of the vehicles is appointed by the operator with the approval of the fund's independent entity and investment committee (if any);
        (c) each of the vehicles undertakes the purchase, sale and management of immovables on behalf of the fund in accordance with the fund's investment objectives, strategies and policy; and
        (d) the interests of the unitholders are otherwise adequately protected.
        (2) The operator of a QFC retail property fund may, by the use of inter-company debt, transfer capital and income between the fund and an intermediate holding vehicle of the fund if:
        (a) the purpose of the transfer is for investment in immovables or the repatriation of income generated by such an investment;
        (b) a record of inter-company debt is kept to provide an accurate audit trail; and
        (c) interest paid out on the debt instruments that gave rise to the inter-company debt is equivalent to the net rental income earned from the immovables less the intermediate holding vehicle's reasonable running costs (including tax).
        (3) Subrule (1) (b) does not apply to an intermediate holding vehicle if:
        (a) the vehicle does not have a majority stake or holding in relation to a joint ownership arrangement over the immovable; or
        (b) the vehicle, at the time the immovable was acquired, was al established in another jurisdiction.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.3.6 Report on use of intermediate holding vehicles to purchase immovables—QFC retail property funds

        (1) If a QFC retail property fund purchases an immovable through the acquisition of an intermediate holding vehicle, the operator of the fund must ensure that a report is prepared on:
        (a) the profit and loss of the vehicle for each of the 3 years preceding the transaction (or any shorter period for which the intermediate holding vehicle was in existence); and
        (b) the assets and liabilities of the vehicle as at a date that is not earlier than 6 months from the date of the report.
        (2) Despite subrule (1) (b), the Regulatory Authority may require that the report on the assets and liabilities of the vehicle be as at a date closer to the date of the report.

        Example

        The Regulatory Authority may require (generally or for a particular case) a different date if an intervening event has made the date used, or proposed to be used, unreliable.
        (3) The report may be prepared by the fund's auditor or another QFC approved auditor. The report may also be prepared by an auditor from a jurisdiction which registers and regulates auditors in a way comparable to QFC approved auditors, but only if the operator of the fund notifies the Regulatory Authority of the auditor's name and address before the report is prepared.
        (4) The report:
        (a) must state how the profits and losses of the vehicle would have affected the fund if the fund had, at all material times, held the shares proposed to be acquired; and
        (b) if the intermediate holding vehicle has subsidiaries—must deal with the profits or losses and the assets and liabilities of the vehicle and its subsidiaries (whether jointly or separately).
        (5) The operator must also ensure that a valuation report for the intermediate holding vehicle's interest in immovables is prepared in accordance with rules 12.4.3, 12.5.6 and 12.5.7.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.4 COLL Part 12.4 Standing independent valuer—QFC retail property funds

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.4.1 Appointment of standing independent valuer—QFC retail property funds

        (1) A QFC retail property fund must at all times have a valuer for the fund (standing independent valuer).
        (2) The operator of a QFC retail property fund must, with the independent entity's approval, appoint a person as standing independent valuer.

        Note As a general rule, a person cannot be the standing independent valuer for the same fund for more than 5 continuous years (see rule 12.4.4).
        (3) A person must not be appointed as the standing independent valuer unless:
        (a) the person carries on the business of valuing immovables;
        (b) the operator and the independent entity are satisfied that the person has the skills, experience, qualifications and attributes to be the standing independent valuer of the fund, having regard to the fund's investment objectives, strategies and policy; and
        (c) the person is independent of:
        (i) the operator and independent entity;
        (ii) if the fund is a CIC—the fund; and
        (iii) a member (however described) of the governing body of the operator, the independent entity or, for a CIC, the fund.

        Guidance for para (3) (b)

        The operator and independent entity should be satisfied that:
        (a) the person is a fellow or associate (however described), or has key personnel who are fellows or associates (however described), of a relevant recognised professional body of surveyors or property valuers (for example, a member of the Royal Institute of Chartered Surveyors (MRICS), a RICS registered valuer or a body recognised by RICS);
        (b) the person has, or has access to, expertise relevant to the fund and, in particular, knowledge and experience in the valuation of immovables of the relevant kind in the relevant area;
        (c) the person has robust internal controls and checks and balances to ensure:
        (i) the integrity of valuation reports; and
        (ii) that valuation reports are properly and professionally prepared in accordance with international best practice;
        (d) the person has adequate professional indemnity insurance; and
        (e) the person does not have ownership or other commercial links with other persons providing services to the fund (for example, investment advisers) that could impair the person's ability to provide independent and objective valuation services to the fund.
        (4) Without limiting subrule (3) (c), a person (A) is not independent of another person (B) if:
        (a) A has, at any time during the last 2 years, been involved in material business dealings with B (otherwise than in the exercise of their respective functions as the holders of positions in relation to any scheme); or
        (b) B has a material interest in A or A has a material interest in B.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.4.2 Standing independent valuer not to deal in immovables—QFC retail property funds

        The standing independent valuer of a QFC retail property fund must not be personally engaged, and must not have an associated person who is engaged, in finding immovables for the fund or finding the fund for immovables.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.4.3 Basis of valuation by standing independent valuer—QFC retail property funds

        (1) A valuation of an interest in an immovable by the standing independent valuer of a QFC retail property fund must be:
        (a) on the basis of 'open market value' (as defined in the constitutional document and the latest filed prospectus); or
        (b) on another appropriate basis.

        Guidance
        1 The constitutional document and latest filed prospectus would be expected to define "open market value" using an authoritative text such as the latest edition of the Royal Institute of Chartered Surveyors' publication called "RICS Valuation—Professional Standards (the Red Book)".
        2 In considering whether valuation of an interest in an immovable by the standing independent valuer is made on an appropriate basis, the operator should consider whether the valuation was made in accordance with internationally accepted valuation principles, procedures and definitions as set out in the International Valuations Standards published by the International Valuation Standards Committee.
        (2) The basis on which the standing independent valuer makes a valuation is subject to the constitutional document and the latest filed prospectus.
        (3) In making a valuation, the standing independent valuer:
        (a) may treat the contents of a building as part of the building; and
        (b) must disregard any arrangement to dispose of an interest in an immovable held as part of the scheme property unless the valuer is satisfied on reasonable grounds that the arrangement is legally enforceable.

        Note For the valuations that a standing independent valuer is required to do, see:
        •    rule 12.5.2 (1) (c) (valuation before acquisition of immovables)
        •    rule 12.5.4 (1) (b) (valuation before disposal of immovables)
        •    rule 12.5.6 (annual and periodic valuations of immovables)
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.4.4 Reappointment of standing independent valuer—QFC retail property funds

        (1) No person may be a standing independent valuer of a QFC retail property fund for a continuous period of 5 years, unless the person is reappointed in accordance with this rule.
        (2) If the operator of a QFC retail property fund wishes to reappoint a person after the person has served 5 continuous years, the operator must put the position to tender before the end of the 5 years.
        (3) If the operator decides (with the approval of the independent entity) to reappoint the same person following the tender process, the operator must state the reasons, and summarise the evidence, for the reappointment in the next operator's report under rule 5.6.13.
        (4) A reappointment under this rule must not exceed 5 years and cannot be further extended.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.4.5 Removal of standing independent valuer—QFC retail property funds

        (1) The operator of a QFC retail property fund may, with the independent entity's approval, remove the standing independent valuer at any time.
        (2) The operator of a QFC retail property fund must remove a person as the standing independent valuer if:
        (a) a special resolution of the unitholders is passed to remove the person;
        (b) the person breaches the prohibition against dealing in immovables under rule 12.4.2;
        (c) the person:
        (i) becomes insolvent;
        (ii) is wound up or put into liquidation; or
        (iii) is placed in receivership or administration; or
        (d) the person ceases to be eligible to be appointed as the standing independent valuer.
        (3) The power to remove the standing independent valuer has effect despite anything in any agreement between the valuer and all or any of the following:
        (a) the operator;
        (b) the independent entity;
        (c) the fund.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.5 COLL Part 12.5 Investments—QFC retail property funds

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.1 Investment committee—QFC retail property funds

        (1) This rule applies to a QFC retail property fund that is not a CIT.

        Note Rule 12.5.1 does not apply to a REIT (see table 12.6.4A).
        (2) The fund must have an investment committee of at least 3 members. The operator must make arrangements for the unitholders to elect the members of the committee after the fund starts operations, and thereafter:
        (a) at least once every 5 years; and
        (b) each time there is a vacancy.
        (3) A person is not eligible for election as a member unless the operator and independent entity are satisfied that the person has the skills, experience and qualifications to review investment opportunities for the fund.
        (4) The members of the committee must be independent of the operator and must not be involved in the fund's day to day management. No person may be a member for more than 5 continuous years.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.2 Requirements for making investments in immovables—QFC retail property funds

        (1) The operator of a QFC retail property fund must ensure that the fund does not invest in an immovable to be held as part of the scheme property unless all the following requirements are complied with:
        (a) the immovable must be located in a jurisdiction specified in the latest filed prospectus;
        (b) the operator must have taken reasonable care to determine that the title to the interest to be acquired in the immovable is a good marketable legal and beneficial title;
        (c) the standing independent valuer has valued the interest and the operator and independent entity have received a report on the valuation.

        Note See rule 12.5.5 (Reports on valuation of immovables before acquisition or disposal—QFC retail property funds).
        (2) However, the report of the standing independent valuer must not be relied on to acquire the interest in an immovable if:
        (a) the interest is not acquired, or agreed by enforceable contract to be acquired, within 6 months after the date of the report;
        (b) it is (or should reasonably be) apparent to the operator that the valuer's report cannot, or can no longer, reasonably be relied on; or
        (c) the price of the interest is, or becomes, more than 105% of the valuation of the interest stated in the report.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.3 Operator's duties in relation to title and insurance of immovables—QFC retail property funds

        (1) The operator of a QFC retail property fund must ensure that the fund holds good marketable legal and beneficial title in all its immovable (whether directly or through an intermediate holding vehicle or vehicles).
        (2) An arrangement entered into in relation to scheme property for the purposes of Islamic finance arrangements where the legal title to the property is held by a financial institution complies with subrule (1) if:
        (a) there is a statement in the fund's prospectus that the fund may enter into such arrangements; or
        (b) the unitholders have by special resolution approved the fund's entry into such arrangements.

        Guidance

        Under rule 12.5.3 (2) operators can use certain Islamic structures such as ijara for transactions that require the financial institution providing the financing to be the legal owner of the immovable.
        (3) The operator must ensure that the fund does not grant any person an option to acquire any scheme property.
        (4) The operator must take all reasonable care to arrange adequate property insurance and public liability insurance for immovables held as part of the scheme property.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.4 Operator's duties in relation to option premiums and disposal of immovables—QFC retail property funds

        (1) The operator of a QFC retail property fund must ensure that the following requirements are complied with in relation to interests in immovables held as part of the fund's scheme property:
        (a) the total of all premiums paid in any 12-month period for options to purchase interests in immovables must not exceed 10% of the fund's gross asset value, calculated at the date of the granting of the option;
        (b) an interest in an immovable must not be disposed of unless:
        (i) the standing independent valuer has valued the interest; and
        (ii) the operator and independent entity have received a report on the valuation.

        Note See rule 12.5.5 (Reports on valuation of immovables before acquisition or disposal—QFC retail property funds).
        (2) However, a report of the standing independent valuer must not be relied on under subrule (1) (b) to dispose of an interest in an immovable if the interest is not disposed of, or agreed by enforceable contract to be disposed of, within 6 months after the date of the report.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.5 Reports on valuation of immovables before acquisition or disposal—QFC retail property funds

        (1) This rule applies to a report by a standing independent valuer in relation to a proposed acquisition or disposal of an interest in an immovable.

        Note For the valuation in relation to proposed acquisition of an immovable, see rule 12.5.2 (1) (c). For the valuation in relation to proposed disposal of an immovable, see rule 12.5.4 (1) (b).
        (2) The report:
        (a) must include a brief description of the immovable, including:
        (i) its location and existing use;
        (ii) the nature of the interest the fund is proposing to acquire, or dispose of, in the immovable;
        (iii) any encumbrances affecting the immovable;
        (iv) whether the immovable is leased and, if leased, the terms of the lease and its expiry;
        (v) the capital value of the immovable at the date of valuation;
        (vi) the net monthly income (if any) from the immovable; and
        (vii) any other matter that may affect the immovable or the value of the interest;
        (b) must include all material details about the basis of valuation and the assumptions used;
        (c) must describe and explain the valuation methods used;
        (d) if more than 1 valuation method is available—must explain the reasons for choosing a particular method;
        (e) must outline the structure and condition of the relevant market, including an analysis of the supply and demand situation, the market trend, and investment activities;
        (f) must confirm that the valuer continues to be eligible to be the standing independent valuer for the firm and that the report is prepared on a fair and unbiased basis; and
        (g) must be dated as at the date the valuation is made.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.6 Annual and periodic valuation of immovables—QFC retail property funds

        (1) The following provisions apply in relation to the valuation of interests in immovables (including investments in intermediate holding vehicles for the purpose of holding immovables) held as part of the scheme property of a QFC retail property fund:
        (a) the operator must ensure that the standing independent valuer:
        (i) values, at least once a year, all the interests in immovables held as part of the scheme property, on the basis of a full valuation with physical inspection (including, if the immovable is or includes a building, internal inspection of the building); and
        (ii) gives the operator and independent entity a report on the valuation;
        (b) for paragraph (a), any inspection in relation to adjacent properties of a similar nature and value may be limited to the inspection of only a single representative property;
        (c) the operator must ensure that the standing independent valuer:
        (i) values, at least once a month, all the interests in immovables held as part of the scheme property, on the basis of a review of the last full valuation (unless the valuer decides that the valuation of an interest in an immovable should be made on the basis mentioned in paragraph (a)); and
        (ii) gives the operator and independent entity a report on the valuation;

        Note Subrule (1) (c) does not apply to a REIT (see table 12.6.4A).
        (d) if the operator or independent entity becomes aware of any matter that appears likely:
        (i) to affect the valuation of an interest in an immovable; or
        (ii) to cause the standing independent valuer to decide to value on the basis mentioned in paragraph (a) instead of on the basis mentioned in paragraph (c);
        it must immediately notify the standing independent valuer about the matter;
        (e) the operator must use its best endeavours to ensure that any other affected person immediately notifies the standing independent valuer if the affected person becomes aware of a matter mentioned in paragraph (d).
        (2) The valuation of an interest in an immovable under this rule has effect for these rules until the next valuation of the interest under this rule.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.7 Annual and other periodic valuation reports—QFC retail property funds

        (1) This rule applies to a report by a standing independent valuer in relation to a valuation of interests in immovables under rule 12.5.6.
        (2) The report:
        (a) must include a brief description of each immovable in which the fund holds an interest, including:
        (i) its location and existing use;
        (ii) the nature of the interest the fund holds in the immovable;
        (iii) any encumbrances affecting the immovable;
        (iv) whether the immovable is leased and, if leased, the terms of the lease and its expiry;
        (v) the capital value of the immovable at the date of valuation;
        (vi) the net monthly income (if any) from the immovable; and
        (vii) any other matter that may affect the immovable or the value of the interest;
        (b) must include all material details about the basis of valuation and the assumptions used;
        (c) must describe and explain the valuation methods used;
        (d) if more than 1 valuation method is available—must explain the reasons for choosing a particular method;
        (e) must outline the structure and condition of the relevant market, including an analysis of the supply and demand situation, the market trend, and investment activities;
        (f) must confirm that the valuer continues to be eligible to be the standing independent valuer for the firm and that the report is prepared on a fair and unbiased basis; and
        (g) must be dated as at the date the valuation is made.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.8 Valuation of financial instruments—QFC retail property funds

        (1) This rule applies in relation to the valuation of financial instruments of the following kinds held as part of the scheme property of a QFC retail property fund:
        (a) securities listed on the Qatar Stock Exchange or another regulated exchange;
        (b) unlisted debt securities;
        (c) government or public securities;
        (d) instruments issued by other property funds.
        (2) The instruments must be valued independently and fairly, on a regular basis, in accordance with the fund's constitutional document. The valuation must be done in accordance with the accounting standards adopted for preparing the fund's financial statements and with industry standards and best practices.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.5.9 Borrowing by QFC retail property funds

        (1) A QFC retail property fund may borrow money (directly or through any intermediate holding vehicle) for the use of the fund to finance an investment or for operating purposes. The loan must be repaid out of the scheme property.
        (2) Money may be borrowed under subrule (1) only from an eligible bank.
        (3) The operator of the fund must ensure that any borrowing is entered into, maintained and monitored in accordance with the borrowing policy as stated in the fund's prospectus. The operator must have regard in particular to:
        (a) the duration of any borrowing; and
        (b) the number of times the fund borrows in any period.
        (4) The operator of the fund must also ensure that the fund's total borrowing does not, on any day, exceed 50% of its gross asset value.
        (5) All borrowing by the fund must be at arm's length. The operator may pledge the fund's assets to secure the borrowing.
        (6) If the borrowing limit is exceeded, the operator must use its best endeavours to reduce the excess borrowing as soon as practicable. The operator must notify the unitholders and the Regulatory Authority of:
        (a) the breach;
        (b) the cause of the breach; and
        (c) any action that has been, or will be, taken to correct the breach.
        (7) For this rule, borrowing by intermediate holding vehicles of the fund must be aggregated in calculating the total of the fund's borrowing.
        (8) This rule is subject to the obligation of the fund to comply with any restriction in the constitutional document. This rule does not apply to back-to-back borrowing.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

    • COLL Part 12.6 COLL Part 12.6 Real estate investment trusts

      Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.1 Application of Part 12.6

        This Part applies to real estate investment trusts. The operator of a retail property fund that is, or is held out as, a REIT must (subject to rule 12.6.4) comply with this Part in addition to the other Parts of this Chapter.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.2 Real estate investment trusts or REITs

        (1) An operator, or a person marketing a fund, must not use the term “Real Estate Investment Trust” or “REIT”, or refer to a fund or otherwise hold out a fund as being a real estate investment trust, unless the fund is a QFC retail property fund that satisfies subrule (2).
        (2) A QFC retail property fund is a real estate investment trust (REIT) if:
        (a) the fund is a closed-ended scheme;
        (b) the fund is listed in the Qatar Stock Exchange or another regulated exchange;
        (c) the fund’s constitutional document and prospectus state that:
        (i) if the fund invests in vacant land for the purpose of development, the total value of those investments in vacant land must not exceed 20% of the value of the fund’s net assets;
        (ii) except to enable the fund to meet with its liquidity requirements, the fund will not borrow, or enter into any other transaction that will result in a financial obligation, if the fund’s total borrowings or obligations will exceed 50% of the value of its net assets;
        (iii) the fund will distribute to unitholders at least 80% of its audited annual net income (adjusted to exclude any fair value capital gains).
        Guidance
        1 For a REIT that holds an immovable through an intermediate holding vehicle or vehicles, the timing of distributions of income may depend on the law of the jurisdiction where the vehicle or vehicles are established.
        2 Nothing in this rule prevents a REIT from distributing more than the percentage stated in its constitutional document and prospectus. If the REIT proposes to distribute less than that percentage, rule 12.6.6 would apply and prior approval from unitholders would be required.

        Note A REIT must be a QFC collective investment company or a QFC collective investment trust (see rule 12.6.3). A REIT must be primarily aimed at investments in income-generating immovables (see definition of property fund).
        (3) If a REIT fails to satisfy a requirement in subrule (2) or in its constitutional document and prospectus, the operator and the independent entity of the REIT must notify the Regulatory Authority and the relevant exchange immediately, but within 1 business day. The notice must state any action that has been, or will be, taken to correct the breach.
        Amended by QFCRA RM/2019-5 (as from 1st July 2019)
        Amended by QFCRA RM/2020-6 (as from 15th October 2020).

      • COLL 12.6.3 Legal forms—REITs

        A real estate investment trust must take the form of a QFC collective investment company or a QFC collective investment trust.

        Note QFC collective investment company (CIC) and QFC collective investment trust (CIT) are defined in rules 1.3.7 and 1.3.9 respectively.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.4 Other provisions continue to apply to REITs

        (1) Except as set out in column 3 of table 12.6.4A, the provisions of these rules described in columns 1 and 2 continue to apply to a REIT.
        (2) Neither table 12.6.4A nor 12.6.4B is exhaustive. Each table is a guide for those who intend to establish and register a REIT.
        (3) Because a REIT cannot take the form of a partnership, provisions that require a QFC retail property fund to be a QFC collective investment partnership or CIP do not apply. As a general rule, provisions that deal with umbrella schemes or the redemption of units do not apply to REITs since REITs must be closed-ended.

        Table 12.6.4A Application of provisions to REITs

        column 1
        applicable provisions
        column 2
        description of contents of provisions
        column 3
        provisions that do not apply
        Chapter 1 general provisions, basic concepts and key terms rules 1.3.6 (b) and 1.3.8
        Chapter 2 registration of scheme  
        Chapter 3 constitutional requirements and units Division 3.2.B

        rules 3.1.1 (b) and 3.2.12
        Chapter 4 operator and independent entity  
        Chapter 5 investor relations, affected persons, prospectus, approvals, meetings, reports, accounts and auditors Divisions 5.4.A, 5.5.A and 5.6.B

        rules 5.6.1 (3), 5.6.9 (3), 5.6.11 (2) to (4), 5.6.12 (2) to (4), 5.6.13 (c), (l) and (m) and 5.6.17 (2) and (3),
             
        Chapter 7 investment and borrowing Parts 7.2, 7.3, 7.4, 7.5 and 7.6

        rules 7.1.10, 7.7.2, 7.7.3 and 7.7.6
        Chapter 8 operating duties and responsibilities, dealing, valuation pricing, register, outsourcing, payments, accounting and income distribution Divisions 8.1.A, 8.2.A, 8.2.C and 8.6.A

        rules 8.1.10, 8.2.5, 8.2.14, 8.3.1, 8.3.3 (2), 8.3.4, 8.6.6, 8.6.11, 8.8.1, 8.8.2 and 8.9.2 (2) and (4)

        Divisions 8.1.B, 8.2.B and 8.6.B in so far as they mention or allow redemption
        Chapter 9 suspension, winding up and transfer schemes rules 9.1.1 and 9.2.1
        Chapter 10 financial promotions and investment activities Parts 10.2 and 10.3
        Chapter 11 other provisions and fees Part 11.3
        Chapter 12 QFC retail property funds rules 12.5.1 and 12.5.6 (1) (c)
        Schedule 1 arrangements that are not collective investment schemes rules S1.14 (1) (b) and S1.15
        Schedule 2 contents of constitutional document Parts S2.2, S2.3 and S2.4

        rules S2.9 (b), S2.18 and S2.19
             
        Schedule 5 contents of prospectus  
        (4) CIPR also deal with collective investment schemes, and the definitions of packaged investment product and issuer in those rules include a unit in a collective investment scheme and the operator of a collective investment scheme, respectively. The provisions of CIPR described in table 12.6.4B may, among others, apply to REITs.

        Table 12.6.4B CIPR provisions that may apply to REITs

        column 1
        provisions
        column 2
        description of contents of provisions
           
        rules 3.5.7 and 3.5.9 inducements
        Part 3.6 personal account transactions
        Parts 4.2 and 4.3 advertisements, personal contacts and telephone contacts
        Part 4.4 initial disclosure document/terms of business
        rule 5.3.4 independent investment advice
        Part 5.4 and Schedule 1 key information document — form and contents

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

      • COLL 12.6.5 Extra constitution requirements—REITs

        (1) The constitutional document of a REIT must state:
        (a) that the fund is a real estate investment trust;
        (b) the exchange where the fund is listed;
        (c) the percentage (at least 80%) of its audited annual net income (adjusted to exclude any fair value capital gains) that the fund intends to distribute to unitholders; and
        (d) whether the fund is a collective investment company or a collective investment trust.

        Note Because a REIT is a QFC retail property fund, its constitutional document must also include the matters set out in rule 12.2.1, such as a statement that the fund invests in at least 3 immovables that generate recurrent rental income.
        (2) The income distribution policy required to be stated in the REIT's constitutional document must include:
        (a) the REIT's proposed distribution date or dates;
        (b) the person responsible for determining any adjustments (such as evaluation surplus and gains on disposal of immovables) to distributable income;
        (c) the basis for any adjustments mentioned in paragraph (b); and
        (d) if relevant, the procedures for calculating, paying and accounting for income equalisation.

        Note For the other statements about income distribution that the constitutional document of a REIT must contain, see rule S2.10.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.6 Proposal to distribute less than stated percentage

        If, for a particular annual distribution, the operator of a REIT proposes not to distribute the percentage (at least 80%) of its audited annual net income (adjusted to exclude any fair value capital gains) as stated in its constitutional document and prospectus, the proposal is taken to be a fundamental change for purposes of rule 5.4.2.

        Note Under rule 5.4.2, any fundamental change must have prior approval from the unitholders.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.7 REITs and intermediate holding vehicles

        If a REIT holds an immovable (whether located in or outside Qatar) through an intermediate holding vehicle, or a series of intermediate holding vehicles, the operator of the REIT must ensure that the vehicle, or each of the vehicles, distributes its income to the REIT. The income is to be distributed to the extent permitted by the law of the jurisdiction where the vehicle is established.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.8 Investments by REITs in immovables under development

        (1) Subject to subrule (2), the operator of a REIT must ensure that any investment in an immovable that is in the course of development (whether by the REIT on its own or in joint venture) is undertaken only if the REIT intends to hold the immovable on completion.
        (2) The total contract value of the immovable under development or redevelopment must not exceed 30% of the gross asset value of the REIT.
        (3) For this rule, development includes redevelopment but does not include refurbishment, retrofitting and renovation.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.9 COLL 12.6.9 Custody of immovables by REIT operator

        (1) The operator of a REIT may act as custodian of an immovable that is part of the fund's scheme property if the operator has:
        (a) adequate systems and controls to segregate and protect the immovable; and
        (b) effective arrangements to ensure that the immovable is not available to creditors of the operator if the operator becomes insolvent.

        Note Under rule 4.2.6 (6) (b), the independent entity of a REIT is not responsible in relation to an immovable held by the operator of the REIT as custodian in accordance with this rule. If the REIT operator acts as custodian, the fund's prospectus must state that fact (see rule S5.20 (1)).
        (2) The systems and controls to segregate and protect the immovable must ensure that:
        (a) legal title to the immovable is registered in the name of the fund;
        (b) the operator identifies, manages and monitors any conflicts of interest as a result of it acting as custodian; and
        (c) the operator designates by name or position the employees who are responsible for safeguarding the ownership rights of the fund over the immovable, including safekeeping documents evidencing title to the immovable.
        (3) In designating an employee under subrule (2) (c), the operator must have regard to conflicts of interest that may arise between the employee's function of safeguarding ownership rights and the employee's other functions.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

        • COLL 12.6.9 Guidance

          In identifying, managing and monitoring conflicts of interest that may arise from acting as custodian, the operator must take into account that it is required to give priority to unitholders' interests if there is a conflict between its own interests and those of unitholders.

          Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.10 Transactions with affected persons—REITs

        (1) The operator of a REIT need not comply with rules 5.1.3 and 5.1.4 (relating to notice and approval) for a transaction with an affected person if:
        (a) the transaction is for the acquisition or sale of an immovable in Qatar;
        (b) the operator has general unitholder approval to enter into such a transaction; and
        (c) the fund's independent entity has confirmed in writing, before the transaction is entered into:
        (i) that the transaction is on terms that comply with the requirement to negotiate at arm's length in rule 5.1.2 (2) (a); and
        (ii) that all other requirements have been complied with.
        (2) For subrule (1) (b), the unitholder approval must be by ordinary resolution passed at the previous annual general meeting of the fund. A unitholder who is an affected person proposing to enter into an affected person transaction, or a unitholder who is an associate of the affected person, must not vote on the resolution.
        (3) The resolution must authorise the operator to enter into transactions with affected persons for the acquisition or sale of immovables in Qatar without obtaining prior unitholder approval in each case during the period for which the resolution is valid. The resolution is valid only until the date of the next annual general meeting of the fund (when it may be renewed).

        Note The operator of a REIT must disclose the existence of such an approval in the fund's prospectus (see rule S5.20 (2)).
        (4) If the operator of a REIT enters into a transaction with an affected person under this rule, the operator must notify unitholders of the details of the transaction, including the identity of the affected person and the nature and extent of the person's interest. The notice must be given as soon as practicable after entering into the transaction.

        Note For service and form of notices to unitholders, see rules 11.1.2 and 11.1.3. Notice may be given in the fund's latest filed prospectus.
        (5) If the operator operates more than 1 fund and a transaction involves 2 or more of them, the transaction is taken to be a transaction with an affected person for each fund.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.11 Depositing cash with, and borrowing money from, affected persons—REITs

        (1) The operator of a REIT must not deposit, with an affected person, cash that is part of the REIT's assets unless:
        (a) the affected person is a regulated financial institution licensed to accept deposits; and
        (b) the rate of interest that is to be paid on the deposit is not lower than the prevailing commercial rate for a deposit of that size and term.
        (2) The operator of a REIT must not borrow money from an affected person unless:
        (a) the affected person is a regulated financial institution licensed to lend money; and
        (b) the rate of interest to be charged on the borrowing is not higher than the prevailing commercial rate for a borrowing of that size and term.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.12 Changes to disclosure about business with affected persons—REITs

        If after the initial disclosure there is a significant change in the information and statements required under rule S5.18 relating to the competing business of an affected person, the operator must notify the unitholders of the change.

        Note For service and form of notices to unitholders, see rules 11.1.2 and 11.1.3. Notice may be given in the fund's latest filed prospectus.

        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.13 When additional approval required from independent entity—REITs

        (1) This rule applies to a transaction between a REIT and an affected person if:
        (a) the transaction is in relation to:
        (i) services provided in the ordinary course of estate management of an immovable of the fund (for example, renovation and maintenance work); or
        (ii) engaging a property agent to provide services to the fund (for example, advisory services in transactions involving immovables); and
        (b) the value of the transaction is 5% or more of the fund's gross asset value, as disclosed in its latest audited accounts.
        (2) The operator must ensure that such a transaction is entered into only with the approval of the fund's independent entity.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.14 Duty to notify relevant exchange—REITs

        (1) The operator and the independent entity of a REIT must notify the exchange in which the REIT is listed if a material event occurs in relation to the REIT. The notice must be given immediately, but within 1 business day.
        (2) In this rule, material event includes:
        (a) an event, or change in circumstances, that is likely to have a significant adverse effect on the REIT or its unitholders;
        (b) an event, or change in circumstances, that is likely to result in material prejudice or damage to the REIT or its unitholders;
        (c) a failure, in a material respect, to comply with the operator's or independent entity's functions under these rules;
        (d) a major breach of the restrictions on the fund's investment and borrowing;
        (e) a material change in the fund's risk management process;
        (f) any matter (other than the issue or redemption of units in the ordinary course of business) that has a material effect on the size of the fund or the price of its units; and
        (g) any other matter that is likely to result in (or that is, under the exchange's rules, ground for) the suspension by the exchange of trading in listed units.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL 12.6.15 Duty to notify Regulatory Authority of trading suspension

        (1) If an exchange on which a REIT is listed suspends trading in the REIT's units, the operator of the REIT:
        (a) must immediately notify the Regulatory Authority orally about the suspension, giving the reasons (so far as the operator is aware of them) for the suspension; and
        (b) must give the authority written confirmation of the suspension and those reasons within 1 business day.
        (2) If the exchange permits trading in the units to re-start, the operator:
        (a) must immediately notify the Regulatory Authority about the exchange's decision orally; and
        (b) must give the authority written confirmation of the decision within 1 business day.
        Inserted by QFCRA RM/2016-1 (as from 19th September 2016)