COLL 9.2.5 Notification to Regulatory Authority that Scheme not Commercially Viable Etc—All QFC Schemes

(1) If the operator of a QFC scheme believes, on reasonable grounds, that the scheme is not commercially viable or the scheme's purpose cannot be accomplished, the operator must give the Regulatory Authority notice about the matter immediately, but within 1 business day after the day the operator forms the belief.

Examples
See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
(2) The notice must include the following information:
(a) the name of the scheme and its registration number given by the Regulatory Authority;
(b) the size and type of scheme;
(c) the number of unitholders;
(d) whether dealing in the scheme's units has been suspended;
(e) why the operator believes that the scheme is not commercially viable or the scheme's purpose cannot be accomplished;
(f) what consideration has been given to the scheme entering into a transfer scheme under part 9.3 (Transfer schemes—QFC schemes) with another scheme registered in the QFC or a subscheme of an umbrella scheme registered in the QFC and the reasons why a transfer scheme is not possible;
(g) whether unitholders have been told of the intention to seek winding-up and, if not, whether and when they will be told of the intention;
(h) details of any proposed rebate of charges to be made to unitholders who recently purchased units;
(i) the preferred date for the start of the winding-up.
(3) The notice must be accompanied by a notice given by the independent entity that includes the following:
(a) a statement that the independent entity, having taken reasonable care in considering the matter, believes that a transfer scheme under part 9.3 is not practicable;
(b) an explanation of the other steps that have been considered that would result in the scheme not needing to be wound up;
(c) confirmation that the operator has exercised its functions in accordance with these rules;

Note Exercise and function are defined in the glossary.
(d) whether the scheme's investment and borrowing powers have been exceeded.
(4) The Regulatory Authority may, in writing, require the operator or independent entity to provide any further information or documents that the authority reasonably needs in relation to the scheme.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)