COLL 7.2.3 Significant Influence Through Transferable Securities— UCITS Type Schemes

(1) The operator of a QFC retail scheme must ensure that the scheme does not acquire transferable securities (the relevant securities) issued by a corporation if—
(a) the relevant securities give the right to vote (whether or not on substantially all matters) at general meetings of the corporation; and
(b) either—
(i) the scheme already holds transferable securities issued by the corporation that give the scheme power to influence significantly the conduct of business by the corporation; or
(ii) acquisition of the relevant securities would give the scheme that power.

Note Corporation is defined in the glossary.
(2) For subrule (1), the QFC retail scheme is taken to have power to influence significantly the conduct of business by the corporation if the scheme, or the operator or independent entity (or both acting together), can exercise or control the exercise of at least 1/3 of the voting rights in the corporation because of the transferable securities issued by the corporation that are held by the scheme.
(3) For subrule (2), any temporary suspension of voting rights must be disregarded.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)