COLL 7.7.6 General Power to Accept or Underwrite Placings—QFC Retail Schemes

(1) This rule applies to any agreement entered into by a QFC retail scheme—
(a) that is an underwriting or sub-underwriting agreement; or
(b) that contemplates that securities will or may be issued, subscribed or acquired for the scheme.

Note Securities is defined in the glossary.
(2) However, this rule, does not apply to—
(a) an option; or
(b) a purchase of a transferable security that gives a right to—
(i) subscribe for or acquire a transferable security; or
(ii) convert a transferable security into another transferable security.

Note Option is defined in the glossary. Transferable security is defined in r 7.1.6.
(3) Any power in this chapter to invest in transferable securities may be used by the QFC retail scheme for the purpose of entering into an agreement to which this rule applies, subject to any restriction in the constitutional document being complied with.

Note Constitutional document is defined in r 3.1.1.
(4) The exposure of the QFC retail scheme to agreements to which this rule applies must, on any day, be—
(a) covered under rule 7.5.1 (Cover for transactions in derivatives and forward transactions—QFC retail schemes); and
(b) such that, if all possible obligations arising under them had immediately to be met in full, there would be no breach of this chapter.
(5) In this rule:

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