COLL 8.1.21 Deferred Redemption—QFC Retail Schemes

(1) If a QFC retail schemes has at least 1 valuation point on each business day, the constitutional document and latest filed prospectus may permit deferral of redemptions at a valuation point to the next valuation point if the requested redemptions exceed—
(a) 10% of the scheme's value; or
(b) if the latest filed prospectus provides another reasonable percentage—that percentage of the scheme's value.

Note Constitutional document is defined in r 3.1.1. Latest filed prospectus, business day, redemption and valuation point are defined in the glossary.
(2) Any deferral of redemptions under subrule (1) must be undertaken in accordance with the procedures explained in the latest filed prospectus.
(3) The procedures must ensure—
(a) the consistent treatment of all unitholders who have sought to redeem units at any valuation point at which redemptions are deferred; and
(b) that all deals relating to an earlier valuation point are completed before deals relating to a later valuation point are considered.

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