COLL 12.3.1 Operator may make alternative custody arrangements for immovables in certain jurisdictions—QFC retail property funds

(1) For the purpose of meeting legal requirements in relation to the ownership of an immovable in the jurisdiction where the immovable is located, the operator of a QFC retail property fund may make alternative arrangements for the custody of the immovable.

Example

This rule may apply if legal title to an immovable cannot be held in Qatar or another GCC country because of the law of another jurisdiction. In such a situation, custody of the immovable by the independent entity may not be possible, and arrangements for declarations of trust, indemnities and resolutions relating to the transfer of custody may have to be made.
(2) The arrangements must not give the operator unfettered control over the scheme property. If the arrangements involve joint ownership or the use of intermediate holding vehicles, the arrangements must be in accordance with whichever of rules 12.3.2 to 12.3.6 apply.
(3) The operator must satisfy the Regulatory Authority that the arrangements:
(a) are for the purpose stated in subrule (1);
(b) comply with subrule (2); and
(c) are legally effective in the QFC and in the jurisdiction where the immovable is located.

Note Under rule 4.2.6 (6) (a), the independent entity of a property fund is not responsible in relation to an immovable that is subject to alternative arrangements in accordance with this rule.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)