COLL 7.7.7 Guarantees and Indemnities—QFC Retail Schemes

(1) A QFC retail scheme, and the independent entity of a QFC retail scheme, must not provide any guarantee or indemnity in relation to the obligation of any person.
(2) None of the scheme property of a QFC retail scheme may be used to discharge any obligation arising under a guarantee or indemnity in relation to the obligation of any person.
(3) This rule does not apply to any of the following:
(a) any indemnity or guarantee given for margin requirements if the derivatives or forward transactions are being used in accordance with the provisions of this chapter;

Note Margin and derivative are defined in the glossary.
(b) any indemnity given to the independent entity against any liability incurred by it in safeguarding the scheme property;
(c) any indemnity given by the scheme or the independent entity to another person if—
(i) the other person is engaged to assist the independent entity to safeguard any of the scheme property; and
(ii) the indemnity is against any liability incurred by the other person in safeguarding scheme property;
(d) for a CIC or CIP—an indemnity given to a person winding up a corporation or scheme (the relevant entity) if the indemnity is given for the purposes of arrangements by which all or part of the property of the relevant entity becomes the first property of the CIC or CIP and the shareholders or unitholders of the relevant entity become the first unitholders of the CIC or CIP;

Note CIC and CIP are defined in r 1.3.7 and 1.3.8 respectively. Corporation is defined in the glossary.
(e) for a CIT—an indemnity given to a person winding up a corporation or scheme if all or part of the property of the corporation or scheme is to become part of the scheme property of the CIT by way of unitisation.

Note CIT is defined in r 1.3.9. Unitisation is defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)