COLL 7.4.6 Investments in Collective Investment Schemes Generally —QFC Retail Schemes

(1) A QFC retail scheme (the investing scheme) may invest in units in a collective investment scheme (the second scheme) only if the second scheme meets all the following requirements:
(a) the second scheme is a QFC retail scheme or a non-QFC retail customer scheme;

Note Non-QFC retail customer scheme is defined in r 1.4.1.
(b) if the second scheme is a non-QFC retail customer scheme— the investment and borrowing powers of the second scheme are the same as, or more restrictive than, the investment and borrowing powers of a QFC retail scheme under these rules;
(c) if the second scheme is a non-QFC retail customer scheme— the second scheme and its operator are required to comply with requirements equivalent to the requirements applying under rule 7.4.7 (Investments in associated schemes—QFC retail schemes) in relation to a QFC retail scheme;
(d) the second scheme is prohibited from having more than 10% in value of its scheme property consisting of units in collective investment schemes;
(e) if the second scheme is an umbrella scheme—each subscheme meets the requirements of paragraph (d) and, if the second scheme is a non-QFC retail customer scheme, also of paragraph (c).

Note 1 Umbrella scheme and subscheme are defined in r 1.2.11.

Note 2 Investments to which r 7.4.2 (Investments in closed-ended schemes as transferable securities—QFC retail schemes) applies are treated as investments in transferable securities, and not investments in units in a scheme.

Note 3 See also r 7.3.6 (3) (Spread for units in schemes etc—QFC retail schemes).
(2) To remove any doubt, this rule is subject to rule 7.4.7.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)