COLL 7.2.4 Investments by Money-Market Funds—QFC Retail Schemes

(1) A QFC retail scheme that is a money-market fund must comply with its primary investment objective, and the investment restrictions, mentioned in schedule 2 (Constitutional document content—QFC schemes), rule S2.33 (Primary investment objective etc—QFC money-market funds).

Note Money-market fund is defined in r 1.3.12.
(2) For the investment restrictions, an approved money-market instrument is a high-quality approved money-market instrument if—
(a) it has been rated by at least 1 rating agency; and
(b) it has been awarded the highest available credit rating by each rating agency that has rated it.

Note Approved money-market instrument is defined in r 7.1.5. Rating agency is defined in INAP.
(3) If an approved money-market instrument forms part of the scheme property of a QFC retail scheme that is a money-market fund, the operator must monitor the instrument to ensure that it continues to be of high quality, taking into account both its credit risk and its final maturity.
(4) A QFC retail scheme that is a money-market fund must provide liquidity through same day or next day settlement.
(5) The weighted average maturity of its investments must not exceed 60 days.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)