COLL 7.3.2 Spread for Certain Transferable Securities and Money-Market Instruments—QFC Retail Schemes

(1) This rule applies to a transferable security if—
(a) the transferable security is not an approved security; and
(b) either—
(i) the transferable security has been issued for 1 year or longer; or
(ii) the transferable security has been issued for less than 1 year and the terms of issue did not include an undertaking that application would be made for it to be admitted to an eligible market.

Note 1 Transferable security is defined in r 7.1.6. Approved security is defined in r 7.1.9. Eligible market is defined in r 7.1.7.

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) This rule applies to a money-market instrument if—
(a) the instrument is not an approved money-market instrument; or
(b) the instrument is an approved money-market instrument but the scheme could not invest in it under rule 7.4.4 (Investments in approved money-market instruments not admitted to eligible markets etc—QFC retail schemes).

Note Approved money-market instrument is defined in r 7.1.5.
(3) The operator of a QFC retail scheme must ensure that not more than 10% in value of the scheme property consists of transferable securities and money-market instruments to which this rule applies.
Amended by QFCRA RM/2016-1 (as from 19th September 2016)