COLL 9.1.1 Suspension and Restart of Dealings—All QFC Schemes

(1) The operator of a QFC scheme may, with the prior agreement of the independent entity, temporarily suspend dealings in all units or a class of units if, because of exceptional circumstances, it is in the interests of all the unitholders of the scheme to do so.

Note Deal and class are defined in the glossary.
(2) If the independent entity requires the operator to suspend dealings in all units or a class of units, the operator must do so without delay.
(3) The independent entity may make a requirement under subrule (2) if, because of exceptional circumstances, it is in the interest of all the unitholders of the scheme to do so.
(4) The operator and independent entity must ensure that the suspension continues only for as long as it is justified having regard to the interests of all the unitholders in the scheme.
(5) If the operator suspends dealings under subrule (1) otherwise than because of a requirement of the independent entity under subrule (2), the operator must—
(a) immediately tell the Regulatory Authority orally, giving its reasons for the suspension; and
(b) give written confirmation to the authority of the suspension and its reasons for the suspension within 1 business day.

Examples for this rule on 'within 1 business day'
See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
(6) If the operator suspends dealings under subrule (1) because of a requirement of the independent entity under subrule (2), the independent entity must—
(a) immediately tell the Regulatory Authority orally, giving the reasons for its action; and
(b) give written confirmation to the authority of the suspension, and its reasons for its action, within 1 business day.
(7) If the operator suspends dealings under subrule (1) or (2), the operator must—
(a) notify the unitholders about the suspension immediately but within 1 business day after the day dealing is suspended; and
(b) from time to time publish (on its website or by other general means) sufficient information to keep unitholders appropriately informed about the suspension, including, if known, its likely duration.
(8) Notification under subrule (7) (a) must—
(a) tell the unitholders about the exceptional circumstances that resulted in the suspension; and
(b) be clear, fair and not misleading; and
(c) tell the unitholders how to obtain the information it is required to publish under subrule (7) (b).
(9) During the suspension—
(a) none of the obligations under part 8.1 (Dealing—QFC schemes) apply; but
(b) the operator must as far as practicable comply with all relevant provisions of part 8.2 (Valuation and pricing—QFC schemes).
(10) The suspension of dealings must end as soon as practicable after the exceptional circumstances mentioned in subrule (1) or (3) cease.
(11) The operator or independent entity must—
(a) review the suspension at least every 28 days; and
(b) tell the Regulatory Authority about the results of the review immediately, but within 1 business day after conducting the review.
(12) If the operator or independent entity becomes aware of any material change in circumstances that may affect the continuation of the suspension, the operator or independent entity must tell the Regulatory Authority immediately, but within 1 business day.
(13) The Regulatory Authority may, at any time, direct the operator to end the suspension.
(14) The operator must immediately comply with the direction.
(15) If the operator decides to restart dealings, the operator must—
(a) immediately tell the Regulatory Authority about the decision orally; and
(b) give written confirmation to the authority of its decision within 1 business day.
(16) The operator may agree, during the suspension, to deal in units at a price calculated by reference to the first valuation point after restarting dealings.
(17) However, if the scheme is a QFC qualified investor scheme that operates limited redemption arrangements, and the exceptional circumstances have affected a valuation point, the operator must fix an additional valuation point as soon as possible after restarting dealings.

Note 1 Limited redemption arrangements and valuation point are defined in the glossary.

Note 2 The Regulatory Authority has power under the Financial Services Regulations, art 105 to give certain directions in relation to collective investment schemes (which are called collective investment funds in those regulations), including a direction to cease the issue or redemption of units in the scheme and to wind up the scheme.
Amended by QFCRA RM/2016-1 (as from 19th September 2016)