COLL 7.3.5 Spread for Government or Public Securities Issued by Single Issuer—QFC Retail Schemes

(1) This rule applies to government or public securities.

Note Government or public security is defined in the glossary.
(2) If no more than 35% in value of the scheme property of a QFC retail scheme is invested in government or public securities issued by a single issuer, there is no limit on the amount that may be invested in government or public securities or in any single issue.
(3) A QFC retail scheme may invest more than 35% in value of the scheme property in government or public securities issued by a single issuer only if all the following requirements are met:
(a) the operator, after consultation with the independent entity before making the investment, is satisfied that the investment is in accordance with the investment objectives, strategies and policy of the scheme as stated in the constitutional document and latest filed prospectus;
(b) no more than 30% in value of the scheme property consists of government or public securities of a single issue;
(c) the scheme property includes government or public securities of at least 6 different issues, whether they are issued by that issuer or another issuer;
(d) the constitutional document expressly authorises the scheme to invest more than 35% in value of the scheme property in government or public securities issued by a single issuer;
(e) the disclosure required by subrule (4) has been made.
(4) For subrule (3) (e), the latest filed prospectus must prominently state—
(a) that more than 35% of the scheme property is or may be invested in government or public securities issued by a single issuer; and
(b) the names of the jurisdictions, or the public or local authorities, issuing government or public securities in which the scheme may invest more than 35% of the scheme property.

Note Jurisdiction is defined in the glossary.
(5) For this rule, an issue of government or public securities differs from another issue if there is a difference in relation to repayment date, rate of interest, guarantor or other material terms of the issue.
(6) In this rule:

issue includes guarantee.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)