COLL 7.7.5 Restrictions on Lending Property Other Than Money—QFC Retail Schemes

(1) The scheme property of a QFC retail scheme other than money must not be lent by way of deposit or otherwise.
(2) For subrule (1), transactions permitted by part 7.6 (Stock lending and repos—QFC retail schemes) are not lending.
(3) The scheme property must not be mortgaged.
(4) If transactions in derivatives or forward transactions are used for a QFC retail scheme in accordance with this chapter, this rule does not prevent the scheme, or the independent entity on the operator's instructions, from—
(a) lending, depositing, pledging or charging scheme property for margin requirements; or
(b) transferring property under the terms of an agreement in relation to margin requirements, if the operator reasonably considers that both the agreement and the margin requirements made under it (including in relation to the level of margin) provide appropriate protection to unitholders.

Note Margin is defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)