• Part 6.4 Part 6.4 Operator — Appointment and Removal

    • PRIV 6.4.1 Initial Appointment of Operator

      On the registration of a scheme under these rules, the person named in the application for registration as the person who is to become the operator becomes the initial operator of the scheme.

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

    • PRIV 6.4.2 Removal of Operator

      (1) The unitholders of a scheme may, in accordance with the constitutional document—
      (a) remove the operator; and
      (b) appoint another person as the operator of the scheme.

      Note Constitutional document is defined in r 3.1.1.
      (2) Without limiting subrule (1), the unitholders must, under that subrule, remove the operator (and appoint another person as the operator of the scheme) if the operator is no longer eligible to be the operator of the scheme under rule 4.1.1 (Requirements for operator) because of action taken by the Regulatory Authority under the Financial Services Regulations, whether or not under article 31 (Own initiative action by Regulatory Authority).
      (3) The person appointed as operator under subrule (1) must be eligible to be the operator of the scheme under rule 4.1.1.
      (4) If a replacement operator is appointed under subrule (1), the replacement operator must tell the Regulatory Authority about the appointment immediately, but within 1 business day after the day the appointment is made.

      Examples

      See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
      (5) On the removal of the former operator under subrule (1), the former operator is released from all further obligations under these rules and the constitutional document.

      Note Constitutional document is defined in r 3.1.1.
      (6) Subrule (5) does not affect the rights of a person in relation to an act or omission of the former operator before its removal.
      (7) If the name of the scheme contains a reference to the name of the former operator, the former operator is entitled to require the replacement operator to propose a change to the name of the scheme.
      (8) This rule does not affect—
      (a) any right to the compensation that the former operator has under the constitutional document; or
      (b) any right that the former operator has under the constitutional document in relation to units held by the operator.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV 6.4.3 Retirement of Operator

      (1) The operator of a scheme is entitled to retire as operator in favour of another person if—
      (a) the operator appoints the other person as operator and assigns all its rights and functions as operator to the person; and
      (b) the person is eligible to be the operator of the scheme under rule 4.1.1 (Requirements for operator).
      (2) On the appointment of the person taking effect, the former operator—
      (a) is released from all further obligations under these rules and the constitutional document; and

      Note Constitutional document is defined in r 3.1.1.
      (b) may keep any consideration paid to it in relation to the change without having to account for it to any unitholder.
      (3) Subrule (2) (a) does not affect the rights of any person in relation to an act or omission by the former operator before its retirement.
      (4) On the retirement of the operator, the replacement operator must immediately, but within 1 business day after the day the replacement operator's appointment takes effect, tell the Regulatory Authority about the retirement and the appointment.

      Examples

      See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV 6.4.4 Consequences of Removal or Retirement of Operator

      (1) If the operator of a scheme is removed or retires, it is entitled to continue to be recorded in the unitholder register for the units it holds.
      (2) Subrule (1) is subject to any restriction in the latest filed prospectus relating to the permitted categories of unitholders.

      Note Latest filed prospectus is defined in the glossary.
      (3) If the operator of a scheme is removed or retires, the operator must, without delay, transfer or deliver the scheme property held by it to the replacement operator unless the QFC Court otherwise orders.
      (4) Until all the scheme property has been transferred or delivered, the operator remains accountable for it to the unitholders.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)