• PRIV 2 PRIV 2 Registration of Schemes

    • PRIV 2.1.1 Application for Registration of Scheme

      (1) The person who is to become the initial operator of a scheme established in the QFC may apply to the Regulatory Authority for registration of the scheme under these rules.

      Note 1 Operator is defined in r 1.2.6.

      Note 2 See the following provisions:
      •   r 3.1.4 (Constitutional document and checklist to be filed with registration application)
      •   r 5.2.5 (Prospectus, checklist and any translations to be filed with registration application).
      (2) The Regulatory Authority may, in writing, require the applicant to give the authority additional information or documents that the authority reasonably needs to decide the application.
      (3) If the applicant does not comply with the requirement, the Regulatory Authority may refuse to consider the application.
      (4) The applicant may withdraw the application by notice given to the Regulatory Authority at any time before the application is decided.
      (5) If, at any time between the making of the application and the application being withdrawn or decided, the applicant becomes aware of a material change that is reasonably likely to be relevant to the Regulatory Authority's consideration of the application, the applicant must tell the authority about the change immediately, but by no later than the next business day.

      Note Business day is defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV 2.1.2 Decision on Application for Registration of Scheme

      (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 and subscheme are defined in r 1.2.8. Class 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:
      (a) limited;
      (b) unlimited;
      (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

      Note Operator 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

      Guidance

      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 (2).
      (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.

      Note 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.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)