COLL 6.3.1 Permitted Stock Lending and Repos—QFC Qualified Investor Schemes

(1) The independent entity of a QFC qualified investor scheme may, at the operator's request, enter into a stock lending arrangement or repo agreement.

Note Stock lending arrangement and repo agreement are defined in the glossary.
(2) Subrule (1) is subject to the constitutional document and the latest filed prospectus.
(3) The independent entity must ensure that the value of any collateral for a stock lending arrangement is at all times at least equal to the value of the securities transferred by the independent entity.
(4) If the validity of any collateral expires, the independent entity's duty under subrule (3) is satisfied if the independent entity or the operator, as appropriate, takes reasonable care to ensure that sufficient collateral will be transferred by close of business on the day of the expiry.

Note Collateral is defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)