COLL 8.1.19 Payment for Redeemed Units—QFC Retail Schemes

(1) If the operator of a QFC retail scheme redeems units on behalf of the scheme, the operator must, before the close of business on the 4th business day after the day the units are redeemed (or, if later, as soon as practicable after delivery to the independent entity of the evidence of title to the units that the independent entity may reasonably require), request the independent entity to pay the former unitholder the price of the units less any deduction required under rule 8.2.16 (Dilution—QFC retail schemes).

Note Redemption, business day and price are defined in the glossary.
(2) The independent entity must make the payment to the unitholder before the close of business on the 6th business day after the day the independent entity receives the request under subrule (1).
(3) If the scheme property does not, and will not within the period required by subrule (2), include sufficient cash to make the payment in the appropriate currency within that period and the scheme cannot borrow the amount needed to make the payment without breaching rule 7.7.3 (Borrowing limits—QFC retail schemes)), the period is extended, for the relevant currency, until the shortage is rectified.

Note Borrowing is defined in the glossary.
(4) If subrule (3) applies, the operator must take reasonable steps to rectify the currency shortage as quickly as possible.
(5) This rule does not apply if the rule 8.1.20 (Issue or redemption otherwise than for cash—QFC retail schemes) applies.
(6) This rule does not require the independent entity or operator to pay an amount or transfer scheme property for a redemption of units if an amount is owing on the earlier issue of the units.

Note Redemption and issue are defined in the glossary.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)