COLL 4.2.3 Oversight Functions of Independent Entity—All QFC Schemes

(1) The independent entity of a QFC scheme must take reasonable care to ensure that the scheme is managed by the operator in accordance with—
(a) the following provisions of these rules (as far as they apply to the scheme):
•   part 5.1 (Transactions with affected persons—QFC schemes)
•   rule 5.6.6 (Operator's reports—QFC qualified investor schemes)
•   rule 5.6.13 (Operator's reports—QFC retail schemes)
•   chapter 6 (Investment and borrowing—QFC qualified investor schemes)
•   chapter 7 (Investment and borrowing—QFC retail schemes)
•   part 8.1 (Dealing—QFC schemes)
•   part 8.2 (Valuation and pricing—QFC schemes)
•   part 8.7 (Accounting periods—QFC schemes)
•   part 8.8 (Income allocation and distribution—QFC schemes); and
(b) the provisions of the constitutional document, and the latest filed prospectus, that relate to any of the following matters:
(i) transactions with affected persons;
(ii) reports of the operator about the scheme;
(iii) investment and borrowing by the scheme;
(iv) dealing in units;
(v) valuation of the scheme property and pricing of units;
(vi) income and capital of the scheme, including their distribution.
(2) Without limiting subrule (1), the independent entity must take reasonable care to ensure on a continuing basis that—
(a) the operator is adopting appropriate procedures to ensure that the scheme's net asset value, and the price per unit in each class, are calculated for each valuation point in accordance with these rules; and
(b) the operator has made and kept sufficient records to show that the scheme's net asset value, and the price per unit in each class, have been calculated for each valuation point in accordance with these rules.

Note Net asset value, class, price and valuation point are defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)