COLL 8.6.10 Payment of Liabilities on Transfer of Assets—QFC Retail Schemes

(1) This rule applies if the scheme property of a QFC retail scheme (the first scheme) is transferred to another QFC retail scheme (or to the independent entity of the other scheme for the other scheme) in consideration of the issue of units in the other scheme to unitholders of the first scheme.

Note In the circumstance described in subrule (1), the other scheme (or independent entity of the other scheme) becomes successor in title to the scheme property transferred.
(2) The other scheme (or independent entity of the other scheme) may pay out of the scheme property of the other scheme any liability arising after the transfer if—
(a) the liability could properly have been paid out of the scheme property transferred had it arisen before the transfer; and
(b) there is nothing in the constitutional document of the other scheme expressly forbidding the payment; and

Note Constitutional document is defined in r 3.1.1.
(c) the operator of the other scheme is of the opinion that proper provision was made for meeting the liabilities that were known or could reasonably have been anticipated at the time of the transfer.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)