COLL 7.1.6 What is a Transferable Security

(1) For these rules, a transferable security is an investment that is any of the following:
(a) a share;
(b) a government or public security;
(c) another debt instrument;
(d) a warrant;
(e) a securities receipt.

Note 1 Investment and each of the types of investment mentioned in r (1) are defined in the glossary.

Note 2 For other kinds of investments that are taken to be transferable securities, see the following provisions:
•   r 7.4.2 (Investments in closed-ended schemes as transferable securities—QFC retail schemes)
•   r 7.4.3 (Investments linked etc to other assets as transferable securities—QFC retail schemes).
(2) However, an investment is not a transferable security if the title to the investment cannot be transferred, or can be transferred only with the consent of a third party.
(3) In applying subrule (2) to a share or debt instrument issued by a corporation, the need for any consent on the part of the corporation or any of its members, or the debt instrument holders of it, may be disregarded.

Note Corporation is defined in the glossary.
(4) Also, an investment is not a transferable security unless the liability of the holder of the investment to contribute to the debts of the issuer is limited to any amount for the time being unpaid by the holder in relation to the investment.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)