COLL 7.1.3 Treatment of Obligations Under Ch 7—QFC Retail Schemes

(1) If a provision of this chapter allows a QFC retail scheme to enter into a transaction, or retain an investment, only if possible obligations arising out of the transaction or retention would not breach any limits under this chapter, it must be assumed that the maximum possible liability of the scheme under any other applicable provision of this chapter must also be provided for.
(2) If a provision of this chapter allows a QFC retail scheme to enter into a transaction, or retain an investment, only if the transaction or retention is covered, or any other similar transactions or investments are covered—
(a) it must be assumed that, in applying any of the provisions of this chapter, the scheme must also, simultaneously, satisfy any other applicable obligation relating to cover; and
(b) no element of cover may be used more than once.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)