COLL 12.6.4 Other provisions continue to apply to REITs

(1) Except as set out in column 3 of table 12.6.4A, the provisions of these rules described in columns 1 and 2 continue to apply to a REIT.
(2) Neither table 12.6.4A nor 12.6.4B is exhaustive. Each table is a guide for those who intend to establish and register a REIT.
(3) Because a REIT cannot take the form of a partnership, provisions that require a QFC retail property fund to be a QFC collective investment partnership or CIP do not apply. As a general rule, provisions that deal with umbrella schemes or the redemption of units do not apply to REITs since REITs must be closed-ended.

Table 12.6.4A Application of provisions to REITs

column 1
applicable provisions
column 2
description of contents of provisions
column 3
provisions that do not apply
Chapter 1 general provisions, basic concepts and key terms rules 1.3.6 (b) and 1.3.8
Chapter 2 registration of scheme  
Chapter 3 constitutional requirements and units Division 3.2.B

rules 3.1.1 (b) and 3.2.12
Chapter 4 operator and independent entity  
Chapter 5 investor relations, affected persons, prospectus, approvals, meetings, reports, accounts and auditors Divisions 5.4.A, 5.5.A and 5.6.B

rules 5.6.1 (3), 5.6.9 (3), 5.6.11 (2) to (4), 5.6.12 (2) to (4), 5.6.13 (c), (l) and (m) and 5.6.17 (2) and (3),
Chapter 7 investment and borrowing Parts 7.2, 7.3, 7.4, 7.5 and 7.6

rules 7.1.10, 7.7.2, 7.7.3 and 7.7.6
Chapter 8 operating duties and responsibilities, dealing, valuation pricing, register, outsourcing, payments, accounting and income distribution Divisions 8.1.A, 8.2.A, 8.2.C and 8.6.A

rules 8.1.10, 8.2.5, 8.2.14, 8.3.1, 8.3.3 (2), 8.3.4, 8.6.6, 8.6.11, 8.8.1, 8.8.2 and 8.9.2 (2) and (4)

Divisions 8.1.B, 8.2.B and 8.6.B in so far as they mention or allow redemption
Chapter 9 suspension, winding up and transfer schemes rules 9.1.1 and 9.2.1
Chapter 10 financial promotions and investment activities Parts 10.2 and 10.3
Chapter 11 other provisions and fees Part 11.3
Chapter 12 QFC retail property funds rules 12.5.1 and 12.5.6 (1) (c)
Schedule 1 arrangements that are not collective investment schemes rules S1.14 (1) (b) and S1.15
Schedule 2 contents of constitutional document Parts S2.2, S2.3 and S2.4

rules S2.9 (b), S2.18 and S2.19
Schedule 5 contents of prospectus  
(4) CIPR also deal with collective investment schemes, and the definitions of packaged investment product and issuer in those rules include a unit in a collective investment scheme and the operator of a collective investment scheme, respectively. The provisions of CIPR described in table 12.6.4B may, among others, apply to REITs.

Table 12.6.4B CIPR provisions that may apply to REITs

column 1
column 2
description of contents of provisions
rules 3.5.7 and 3.5.9 inducements
Part 3.6 personal account transactions
Parts 4.2 and 4.3 advertisements, personal contacts and telephone contacts
Part 4.4 initial disclosure document/terms of business
rule 5.3.4 independent investment advice
Part 5.4 and Schedule 1 key information document — form and contents

Amended by QFCRA RM/2019-4 (as from 1st January 2020).