• PRIV Schedule 1 PRIV Schedule 1 Constitutional Document Content

    (see r 3.1.2)

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

    • PRIV S1.1 Name of Scheme

      A statement of the name of the scheme.

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

    • PRIV S1.2 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; and
      (c) the scheme is a private placement scheme; and
      (d) units in the scheme can only be recorded in the unitholder register in the name of 100 persons (or a stated lesser number of persons).
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.3 Legal form of Scheme etc

      A statement of the legal form of the scheme.

      Note For the permitted legal forms of schemes, see r 1.2.11.

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

    • PRIV S1.4 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 1.2.9. Shari'a Supervisory Board is defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.5 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 1.2.8.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.6 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/2010-06 (as from 1st January 2011)

    • PRIV S1.7 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.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.8 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/2010-06 (as from 1st January 2011)

    • PRIV S1.9 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 1.2.8.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.10 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/2010-06 (as from 1st January 2011)

    • PRIV S1.11 Investment and Borrowing Restrictions

      (1) A statement providing details of all investment restrictions applying to the scheme or, if there are no restrictions, a statement to that effect.
      (2) A statement providing details of all borrowing restrictions applying to the scheme or, if there are no restrictions, a statement to that effect.

      Note Investment and borrowing are defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.12 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/2010-06 (as from 1st January 2011)

    • PRIV S1.13 Valuation and Pricing

      (1) A statement setting out the basis for, and frequency of, valuation of the scheme.
      (2) For an open-ended scheme, a statement setting out the basis for, and frequency of pricing of each class of units in the scheme.

      Note Open-ended scheme is defined in r 1.2.7 (1). Class is defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.14 Base Currency

      A statement of the base currency of the scheme.

      Note Base currency is defined in the glossary.

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

    • PRIV S1.15 Functions of Operator

      A statement providing details of the functions of the operator under these rules in relation to the scheme.

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

    • PRIV S1.16 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/2010-06 (as from 1st January 2011)

    • PRIV S1.17 Other Statements and Provisions for CIC

      (1) For a CIC, the following statements:
      (a) if the scheme is an open-ended scheme — statement that the scheme is an open-ended company with variable share capital;

      Note Open-ended scheme is defined in r 1.2.7 (1).
      (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 1.2.12.
      (2) For a CIC that is an open-ended scheme, a provision authorising the allocation of redeemable shares without limit by reference to the CIC's net asset value at the relevant time.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.18 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 to do everything required or permitted of it by its terms.

      Note CIP is defined in r 1.2.13. Partnership agreement is defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.19 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 to do everything required or permitted of it by its terms.

      Note CIT is defined in r 1.2.14. Trust instrument is defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.20 CIT Declaration of Trust

      For a CIT, a statement that, subject to the trust instrument and the Private Placement Schemes Rules 2010

      (a) the scheme property (other than amounts in any distribution account) is held by the operator 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 operator on trust to distribute or apply in accordance with the trust instrument and those rules.

      Note CIT is defined in r 1.2.14. Trust instrument and distribution account are defined in the glossary. Scheme property is defined in r 1.2.3.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.21 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/2010-06 (as from 1st January 2011)

    • PRIV S1.22 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/2010-06 (as from 1st January 2011)

    • PRIV S1.23 Amendment of Constitutional Document

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

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

    • PRIV S1.24 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 Private Placement 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/2010-06 (as from 1st January 2011)

    • PRIV S1.25 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/2010-06 (as from 1st January 2011)

    • PRIV S1.26 Limits on Unit Issue and Redemption

      For an open-ended scheme and if relevant, 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 Open-ended scheme is defined in r 1.2.7 (1). Issue, class and redemption are defined in the glossary.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.27 Conflicts of Interests with Affected Persons

      Provisions for managing conflicts of interests (or potential conflicts of interest) in transactions by the operator with affected persons in relation to the scheme property.

      Note Affected person is defined in r 5.1.1.

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

    • PRIV S1.28 Fundamental and Significant Changes

      Provisions providing—

      (a) for approval by, or adequate consultation with, unitholders about fundamental changes in relation to the scheme; and
      (b) appropriate notice to unitholders about significant changes in relation to the scheme.
      Derived from QFCRA RM/2010-06 (as from 1st January 2011)

    • PRIV S1.29 Other Relevant Matters

      A statement providing details of the matters—

      (a) necessary to enable the scheme and the operator 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/2010-06 (as from 1st January 2011)