• COLL Schedule 2 COLL Schedule 2 Constitutional Document Content—QFC Schemes

    (see r 3.1.2)

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

    • COLL Part S2.1 COLL Part S2.1 Constitution Requirements—All QFC Schemes

      • COLL S2.1 Name of Scheme

        A statement of the name of the scheme.

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

      • COLL S2.2 Scheme is Established in QFC etc

        A statement that—

        (a) the scheme is a collective investment scheme established in the QFC; and
        (b) the constitutional document is governed by the law applying in the QFC in relation to collective investment schemes.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.3 Legal Form of Scheme Etc

        A statement of the legal form of the scheme.

        Note For the permitted legal forms of QFC schemes, see r 1.3.6.

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

      • COLL S2.4 Islamic Funds

        For an Islamic fund—

        (a) a statement that the scheme (or subscheme) is an Islamic fund and consequently that its entire business operations are conducted in accordance with Shari'a; and
        (b) a statement providing details of its Shari'a Supervisory Board.

        Note Islamic fund is defined in r 1.3.11. Shari'a Supervisory Board is defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.5 Investment Objectives and Policy Etc

        The following statements:

        (a) a statement of the scheme's investment objectives (including its financial objectives) and, in particular—
        (i) the types of investments in which it (and, if applicable, each subscheme) may invest; and
        (ii) the scheme's investment strategies, including its approach to borrowing and gearing;
        (b) that the object of the scheme is to invest in investments of those types with the aim of spreading investment risk and giving unitholders the benefits of the investments;
        (c) a statement of the scheme's policy for achieving its investment objectives.

        Note Investment and borrowing are defined in the glossary. Subscheme is defined in r 1.2.11.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.6 Duration of Limited Schemes

        If the duration of the scheme is limited, a statement to that effect, of the duration of the scheme and, if appropriate, of any conditions for extending the duration of the scheme.

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

      • COLL S2.7 Unitholder's Liability to Pay

        (1) A provision that—
        (a) a unitholder is not liable to make any further payment for a unit after paying the price for the unit; and
        (b) no further liability can be imposed on the unitholder in relation to the unit.

        Note Unit and unitholder are defined in r 1.2.4 and r 1.2.5 respectively. Price is defined in the glossary.
        (2) A provision that the unitholders are not liable for—
        (a) the debts or other liabilities of the scheme; or
        (b) acts or omissions of the operator; or
        (c) acts or omissions of the independent entity.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.8 Fees, Charges and Other Expenses of Scheme

        Each of the following statements:

        (a) that fees, charges and other expenses in relation to the scheme may be taken out of scheme property;
        (b) a statement of how the amounts of fees, charges and other expenses are to be calculated.

        Note Scheme property is defined r 1.2.3.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.9 Classes of Units

        A statement of—

        (a) the classes of units that may be issued for the scheme; and
        (b) for an umbrella scheme—the classes of units that may be issued for each subscheme of the scheme; and
        (c) the rights attaching to units in each class, including any provision for the expression of the rights in 2 or more denominations.

        Note Class and issue are defined in the glossary. Umbrella scheme and subscheme are defined in r 1.2.11.

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

      • COLL S2.10 Income and Capital Distribution

        (1) A statement providing details of—
        (a) the distribution policy of the scheme; and
        (b) the person responsible for calculating, transferring, allocating and distributing income or capital for any class of unit in issue during an accounting period; and
        (c) any provision for payment of income or capital and when income or capital must be distributed.
        (2) If relevant, a provision for income equalisation.

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

      • COLL S2.11 Investment and Borrowing Restrictions

        (1) A statement providing details of all investment restrictions applying to the scheme.
        (2) A statement providing details of all borrowing restrictions applying to the scheme, including, for a qualified investor scheme, the scheme's permitted percentage under rule 6.4.1 (Borrowing—QFC qualified investor schemes).

        Note Investment and borrowing are defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.12 Management of Borrowing Risks

        A statement providing details of how any risks posed by borrowings of the scheme are to be managed.

        Note Borrowing is defined in the glossary.

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

      • COLL S2.13 Valuation and Pricing

        (1) A statement setting out the basis for, and frequency of, valuation of the scheme.
        (2) A statement setting out the basis for, and frequency of, pricing of each class of units in the scheme.

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

      • COLL S2.14 Base Currency

        A statement of the base currency of the scheme.

        Note Base currency is defined in the glossary.

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

      • COLL S2.15 Functions of Operator and Independent Entity

        (1) A statement providing details of the functions of the operator under these rules in relation to the scheme.
        (2) A statement providing details of the functions of the independent entity under these rules in relation to the scheme.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.16 Responsibility Statement

        A provision stating that nothing in the constitutional document has the effect of exempting the operator or independent entity from, or indemnifying the operator or independent entity against, any liability of the operator or independent entity to a participant under the law applying in the QFC.

        Note Operator is defined in r 1.2.8. Independent entity is defined in r 1.2.9. Participant is defined in r 1.2.2.

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

      • COLL S2.17 Meetings

        A statement providing details of the following:

        (a) the procedures for calling meetings of unitholders;
        (b) resolutions and voting at meetings of unitholders;
        (c) the voting rights of unitholders;
        (d) the matters that require the approval of unitholders;
        (e) the matters that require the approval of an ordinary resolution;
        (f) the matters that require the approval of a special resolution.

        Note Ordinary resolution and special resolution are defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.18 Other Statements and Provisions for CIC

        (1) For a CIC, the following statements:
        (a) a statement that the scheme is a closed-ended company, or an open-ended company with variable share capital;
        (b) a statement providing particulars of the scheme's capital structure, including the maximum and minimum sizes of the scheme's capital;
        (c) a statement of the proportion of a larger denomination share represented by a smaller denomination share for any relevant class of units.

        Note CIC is defined in r 1.3.7. Larger denomination share and smaller denomination share are defined in r 3.2.2 (2).
        (2) For a CIC that is open-ended, a provision authorising the allocation of redeemable shares without limit by reference to the CIC's net asset value at the relevant time.

        Note Net asset value is defined in the glossary.
        Amended by QFCRA RM/2016-1 (as from 19th September 2016)

      • COLL S2.19 CIP Partnership Agreement Binding Etc

        For a CIP, a statement that the partnership agreement—

        (a) is binding on each unitholder as if the unitholder had been a party to it; and
        (b) authorises and requires the operator and independent entity to do everything required or permitted of them by its terms.

        Note CIP is defined in r 1.3.8. Partnership agreement is defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.20 CIT Trust Deed Binding Etc

        For a CIT, a statement that the trust instrument—

        (a) is binding on each unitholder as if the unitholder had been a party to it; and
        (b) authorises and requires the operator and independent entity to do everything required or permitted of them by its terms.

        Note CIT is defined in r 1.3.9. Trust instrument is defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.21 CIT Declaration of Trust

        For a CIT, a statement that, subject to the trust instrument and the Collective Investment Schemes Rules 2010

        (a) the scheme property (other than amounts in any distribution account) is held by the independent entity on trust for the unitholders—
        (i) according to the number of units held by each unitholder; or
        (ii) if relevant, according to the number of individual shares in the scheme property represented by the units held by each unitholder; and
        (b) the amounts in any distribution account are held by the independent entity on trust to distribute or apply in accordance with the trust instrument and those rules.

        Note CIT is defined in r 1.3.9. Trust instrument and distribution account are defined in the glossary. Scheme property is defined in r 1.2.3.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.22 Assets Other than Cash for Issue or Redemption

        If relevant, a statement authorising payment for the issue or redemption of units in the scheme to be made by the transfer of assets other than cash.

        Note Issue and redemption are defined in the glossary.

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

      • COLL S2.23 Suspension and Winding-up

        A statement providing details of—

        (a) the grounds on which the operator may initiate a suspension of the scheme; and
        (b) the methodology for working out the rights of unitholders to participate in the scheme property on winding-up.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

      • COLL S2.24 Amendment of Constitutional Document

        A statement providing details of how the constitutional document may be amended.

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

      • COLL S2.25 Redemption of Units Held in Breach of QFC Law

        A statement that, if the holding of units by a unitholder is (or is reasonably considered by the operator to be) in breach of the Collective Investment Schemes Rules 2010, any other law applying in the QFC or the constitutional document, the units must be redeemed.

        Note Redemption is defined in the glossary.

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

      • COLL S2.26 Documents Evidencing Title to Units

        A statement providing details of any documents evidencing title to units.

        Note Document evidencing title is defined in the glossary.

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

      • COLL S2.27 Other Relevant Matters

        A statement providing details of the matters—

        (a) necessary to enable the scheme, the operator and independent entity to obtain any privilege or power provided in these rules that is not otherwise provided in the constitutional document; and
        (b) otherwise required by these rules to be provided in the constitutional document.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL Part S2.2 COLL Part S2.2 Extra Constitution Requirements—Qualified Investor Schemes

      • COLL S2.28 Qualified Investor Scheme Statement—QFC Qualified Investor Schemes

        A statement that the scheme is a qualified investor scheme.

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

      • COLL S2.29 Only Qualified Investors can be Unitholders in Qualified Investor Schemes—QFC Qualified Investor Schemes

        A statement that units in the scheme can only be recorded in the unitholder register in the name of a person who is a qualified investor.

        Note Qualified investor, for a QFC scheme, is defined in r 1.2.12 (2).

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

      • COLL S2.30 Limits on Unit Issue and Redemption—QFC Qualified Investor Schemes

        A statement providing details of—

        (a) when the issue of units of any particular class may be limited; and
        (b) the provisions relating to any restrictions on the right to redeem units of any class.

        Note Issue, class and redemption are defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)

    • COLL Part S2.3 COLL Part S2.3 Extra Constitution Requirement—UCITS Type Schemes

      • COLL S2.31 UCITS Type Scheme Statement—QFC UCITS Type Schemes

        A statement that the scheme is a UCITS type scheme.

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

    • COLL Part S2.4 COLL Part S2.4 Extra Constitution Requirements—Money-Market Funds

      • COLL S2.32 Money-Market Fund Statement—QFC Money-Market Funds

        A statement that the scheme is a money-market fund.

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

      • COLL S2.33 Primary Investment Objective Etc—QFC Money-Market Funds

        (1) A statement that the scheme's primary investment objective is to maintain the scheme's net asset value.

        Note Net asset value is defined in the glossary.
        (2) The statement mentioned in subrule (1) must specify whether the scheme's net asset value is to be maintained—
        (a) constant at par (net of earnings); or
        (b) at the value of a participant's initial capital plus earnings.
        (3) A statement that, with a view to achieving the scheme's primary investment objective, the scheme may invest only in—
        (a) high quality approved money-market instruments; and
        (b) on an ancillary basis, deposits with eligible banks.

        Note 1 Approved money market instrument is defined in r 7.1.5.

        Note 2 For the meaning of high quality approved money-market instrument, see the following:
        •   r 6.1.5 (2) (Investments by money-market funds—QFC qualified investor schemes)
        •   r 7.2.4 (2) (Investments by money-market funds— QFC retail schemes).
        Note 3 Deposit and eligible bank are defined in the glossary.
        Derived from QFCRA RM/2010-05 (as from 1st January 2011)