COLL 8.6.2 Payments Out of Scheme Property—QFC Retail Schemes

(1) The only payments that may be made from the scheme property of a QFC retail scheme are payments in relation to—
(a) remunerating the persons operating the scheme; or
(b) the administration of the scheme; or
(c) the investment or safeguarding of the scheme property; or
(d) any taxes payable by the scheme or on scheme property.
(2) A payment under subrule (1) (a) to (c) must not be made from scheme property if it is unfair to (or materially prejudices the interests of) any class of unitholders or potential unitholders.
(3) To remove any doubt, subrule (2) does not invalidate a payment that gives rise to a difference between the rights of separate classes of units if the difference relates solely to the payments that may be taken out of the scheme property.
(4) If any annual management charge, or performance fee, (however described) that is payable to the operator in accordance with the latest filed prospectus is not paid when it is payable, the operator must tell the Regulatory Authority about the non-payment immediately, but within 1 business day.


See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)