COLL 8.6.5 Redemption Charges—QFC Retail Schemes

(1) A redemption charge may be expressed as an amount or percentage.

Note Redemption charge is defined in the glossary.
(2) A redemption charge may also be expressed as diminishing over the time for which the unitholder has held the units or be calculated on the basis of the unit price performance of the units.
(3) However, any redemption charge must not be such that it could be reasonably regarded as restricting any right of redemption.

Note For the mandatory content of the prospectus of a QFC retail scheme in relation to redemption charges, see r S4.19 (Redemption charges).
Derived from QFCRA RM/2010-05 (as from 1st January 2011)