COLL 8.1.7 When Instructions for Issue and Redemption Must be Given—QFC Qualified Investor Schemes

(1) The latest filed prospectus of a QFC qualified investor schemes must fix a time before a valuation point (the cut-off point) after which the operator must not accept instructions to issue or redeem units on behalf of the scheme at the valuation point.
(2) The cut-off point must not be earlier than the close of business on the business day before the valuation point to which it relates.
(3) However, if there are 2 or more valuation points on a day, the cutoff point for a valuation point must not be earlier than the valuation point immediately before it.

Examples

If there are 3 valuations points at 10 am, 12 noon and 2 pm on a business day (the relevant day), the cut-off points for the valuations points must comply with the following:
(a) the cut-off point for the 10 am valuation point cannot be earlier than the close of business on the business day before the relevant day;
(b) the cut-off point for the 12 noon valuation point cannot be earlier than 10 am on the relevant day;
(c) the cut-off point for the 2 pm valuation point cannot be earlier than 12 noon on the relevant day.
(4) Different cut-off points may be used to differentiate between the methods of submitting instructions to redeem to the operator but not to differentiate between unitholders or potential unitholders.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)