COLL 6.4.1 Borrowing—QFC Qualified Investor Schemes

(1) The operator of a QFC qualified investor scheme must—
(a) ensure that the scheme's total borrowing does not, on any day, exceed the permitted percentage of the scheme's net asset value; and

Note Borrowing and net asset value are defined in the glossary.
(b) ensure that any further borrowing restrictions in the constitutional document and latest filed prospectus are complied with; and
(c) take reasonable care to ensure that arrangements are in place that will enable borrowings to be closed out to ensure that paragraphs (a) and (b) are complied with.

Note Close out is defined in the glossary.
(2) For subrule (1) (a), the permitted percentage is—
(a) 100 %; or
(b) if the Regulatory Authority, by written notice, sets a different percentage (whether higher or lower) for the scheme (whether at the time of registration or later) or for QFC qualified investor schemes that include the scheme—the percentage set.
(3) If the Regulatory Authority sets a different percentage by notice under subrule (2) (b), the authority must—
(a) publish the notice on an approved website; and
(b) give a copy of the notice to the operator of each scheme to which the notice applies.

Note Approved website is defined in INAP.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)