(1) On an application under rule 2.1.1
for registration of a scheme, the Regulatory Authority must—
(a) register the scheme under these rules as a private placement scheme; or
(b) refuse to register the scheme under these rules.
(2) The Regulatory Authority must register the scheme unless it considers that—
(a) the constitutional document does not comply with rule 3.1.2
(Matters to be included in constitutional document) or contains a provision that conflicts with any provision of these rules; or
(b) the name of the scheme, any subscheme of the scheme, or a class of units—
(i) is substantially similar to the name of—
(A) a scheme registered under COLL or these rules; or
(B) a subscheme of an umbrella scheme registered under COLL or these rules; or
(C) a class of units for a scheme registered under COLL or these rules; or
(ii) is otherwise undesirable or misleading; or
Note Umbrella scheme
are defined in r 1.2.8
is defined in the glossary.
Guidance on names of CIC
A scheme that is a CIC must not include in its name the following words, abbreviations of the following words or similar words or abbreviations:
(c) public limited company.
(c) the person named in the application as the person who is to become the initial operator of the scheme is not eligible, on the scheme's registration, to be the operator of the scheme under rule 4.1.1
(Requirements for operator); or
is defined in r 1.2.6
(d) the person named in the application as the person who is to become the initial auditor of the scheme is not eligible to be the auditor of the scheme under GENE, section 9.7
(Auditors) as applied by rule 5.5.2
(6) (Appointment and removal of auditors etc); or
(e) the prospectus drawn up for the scheme does not comply with these rules; or
Note Prospectus is defined in the glossary.
(f) the scheme does not otherwise comply with these rules; or
(g) the proposed arrangements for safeguarding the scheme property do not provide an appropriate level of protection for participants and potential participants in the scheme; or
The Regulatory Authority would usually expect the scheme property to be held by an independent custodian that is authorised in the QFC or another jurisdiction providing an appropriate level of protection for participants and potential participants in the scheme.
(h) if the scheme is to be a closed-ended scheme — it is inappropriate for the scheme to be a closed-ended scheme; or
Note Closed-ended scheme
is defined in r 1.2.7
(i) the dominant purpose of the scheme becoming registered under these rules is to avoid the application of provisions of COLL that should apply to the scheme in the interests of participants or potential participants in the scheme; or
(j) it is otherwise inappropriate for the scheme to be registered under these rules, particularly having regard to the interests of participants and potential participants in the scheme.
Note 1 Participant
is defined in r 1.2.2
The Regulatory Authority has power under the Financial Services Regulations
, art 105 to give certain directions in relation to collective investment funds, including a direction to cease the issue or redemption of units in the fund and to wind up the fund.
(3) The Regulatory Authority may register the scheme either—
(a) without conditions, restrictions or requirements; or
(b) with the conditions, restrictions or requirements it considers appropriate.
(4) The Regulatory Authority must give the applicant written notice of its decision on the application.
(5) If the Regulatory Authority refuses to register the scheme or registers the scheme with conditions, restrictions or requirements not agreed to by the applicant, the notice must—
(a) give reasons for the decision; and
(b) tell the applicant that the applicant may appeal to the QFC Regulatory Tribunal against the decision.