COLL 8.2.8 General Rules for Valuation of Scheme Property—QFC Retail Schemes

(1) The operator of a QFC retail scheme must value the scheme's investments using a reputable source.
(2) The operator must keep the reliability of the source of prices under regular review.
(3) For some or all of the investments held as part of the scheme property, the operator may quote different prices according to whether they are being bought (offer prices) or sold (bid prices).
(4) The valuation of investments held as part of the scheme property must reflect their mid-market value.
(5) If single prices are quoted for both buying and selling investments, the latest filed prospectus must explain how the investments must be valued.

Note Latest filed prospectus is defined in the glossary.
(6) If the scheme invests in approved money-market instruments, the operator must value an approved money-market instrument on an amortised cost basis if the instrument has a residual maturity of less than 3 months and has no specific sensitivity to market parameters, including credit risk.

Note Approved money-market instrument is defined in r 7.1.5.
(7) Any part of the scheme property that is not an investment must be valued at fair value. An interest in an immovable held by a QFC retail property fund must be valued by the fund's standing independent valuer under rule 12.5.6.

Note Under rules 12.3.2 (3) and 12.5.6, an investment in an intermediate holding vehicle for the purpose of holding an immovable:
(a) must be treated as if it were a direct investment in the immovable; and
(b) must be valued as an immovable.
(8) Any fiscal charges, commissions, professional fees or other charges that were paid, or would be payable, on acquiring or disposing of an investment or other part of the scheme property must be excluded from the value of the investment or other part of the scheme property.
(9) The operator must—
(a) document the basis of valuation of the scheme property (including any fair value pricing policy for rule 8.2.9) and, if appropriate, the basis of any methodology; and
(b) act consistently and fairly in making a valuation.
Amended by QFCRA RM/2016-1 (as from 19th September 2016)