COLL 8.2.19 Maintaining Value—All Money-Market Funds

(1) This rule applies to a QFC qualified investor scheme or QFC retail scheme that is a money-market fund.

Note Money-market fund is defined in r 1.3.12.
(2) The operator must conduct a valuation of the scheme property on a mark to market basis at least once every week and at the same valuation point used to value the scheme property on an amortised cost basis.

Note Valuation point is defined in the glossary.
(3) The operator must ensure that the value of the scheme property when valued on a mark to market basis does not differ by more than 0.5% from the value of the scheme property when valued on an amortised cost basis.
(4) The operator must tell the independent entity in writing whenever a valuation discloses that the mark to market value of the money-market fund differs from its amortised cost basis value by more than 0.1%.
(5) The operator must agree with the independent entity procedures designed to stabilise the money-market fund if the mark to market value of the scheme differs from its amortised cost basis value by 0.1%, 0.2% or 0.3%.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)