COLL 8.1.13 Controls Over Issue and Redemption of Units—QFC Retail Schemes

(1) The operator of a QFC retail scheme must ensure that at each valuation point there are at least as many units in issue of any class as there are units registered to unitholders of that class.

Note Valuation point and class are defined in the glossary.
(2) In issuing or redeeming units, the operator must not do, or fail to do, anything that would, or might, give the operator, or an associated person for the operator, a benefit or advantage at the expense of a unitholder or a potential unitholder.

Note Issue, redemption and associated person are defined in the glossary.
(3) The operator must, as required by these rules and the latest filed prospectus—
(a) issue and redeem units on behalf of the scheme; and
(b) arrange for the payment of money or transfer of assets to or from the independent entity for the scheme.

Note Money and latest filed prospectus are defined in the glossary.
(4) The operator must keep a record of the issues and redemptions it makes.
(5) If the operator breaches subrule (1) or (2), it must—
(a) correct the breach as quickly as possible; and
(b) reimburse the scheme any costs the scheme may have incurred in correcting the breach, subject to any reasonable level for reimbursement provided in the latest filed prospectus.

Note Breach is defined in the glossary.
(6) The operator must have systems and controls to ensure compliance with subrule (1).

Guidance for controls
1 GENE principle 4 requires an authorised firm to have effective systems and controls. GENE principle 7 requires an authorised firm to have regard to its customers' interests and to treat them fairly.
2 The operator should agree a period with the independent entity during which the operator will issue or redeem units. A period up to the next valuation point, but in all cases within 24 hours, may be acceptable if the provisions mentioned in paragraph 1 are complied with.
Amended by QFCRA RM/2014-3 (as from 1st January 2015)