COLL 12.3.6 Report on use of intermediate holding vehicles to purchase immovables—QFC retail property funds

(1) If a QFC retail property fund purchases an immovable through the acquisition of an intermediate holding vehicle, the operator of the fund must ensure that a report is prepared on:
(a) the profit and loss of the vehicle for each of the 3 years preceding the transaction (or any shorter period for which the intermediate holding vehicle was in existence); and
(b) the assets and liabilities of the vehicle as at a date that is not earlier than 6 months from the date of the report.
(2) Despite subrule (1) (b), the Regulatory Authority may require that the report on the assets and liabilities of the vehicle be as at a date closer to the date of the report.

Example

The Regulatory Authority may require (generally or for a particular case) a different date if an intervening event has made the date used, or proposed to be used, unreliable.
(3) The report may be prepared by the fund's auditor or another QFC approved auditor. The report may also be prepared by an auditor from a jurisdiction which registers and regulates auditors in a way comparable to QFC approved auditors, but only if the operator of the fund notifies the Regulatory Authority of the auditor's name and address before the report is prepared.
(4) The report:
(a) must state how the profits and losses of the vehicle would have affected the fund if the fund had, at all material times, held the shares proposed to be acquired; and
(b) if the intermediate holding vehicle has subsidiaries—must deal with the profits or losses and the assets and liabilities of the vehicle and its subsidiaries (whether jointly or separately).
(5) The operator must also ensure that a valuation report for the intermediate holding vehicle's interest in immovables is prepared in accordance with rules 12.4.3, 12.5.6 and 12.5.7.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)