COLL 7.3.10 Concentration-QFC Retail Schemes

(1) The operator of a QFC retail scheme must ensure that the scheme does not acquire transferable securities (other than debt instruments) that—
(a) do not give a right to vote on any matter at a general meeting of the issuer of the transferable securities; and
(b) represent more than 10% of the transferable securities issued by the issuer.

Note 1 Transferable security is defined in r 7.1.6. Debt instrument is defined in the glossary.

Note 2 For investments that are treated as 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) The operator of a QFC retail scheme must ensure that the scheme does not acquire—
(a) more than 10% of the debt instruments issued by a single issuer; or
(b) more than 25% of the units in a collective investment scheme; or
(c) more than 10% of the money-market instruments issued by a single issuer.
(3) However, the operator need not comply with a limit under subrule (2) if, at the time of the acquisition, the net amount in issue of the debt instruments, units in the collective investment scheme or money-market instruments cannot be calculated.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)