COLL S4.17 Dilution

Details of what is meant by dilution, including—

(a) a statement explaining—
(i) that is not possible to predict accurately whether dilution is likely to happen; and
(ii) that a dilution adjustment is required to reduce the effect of dilution; and
(iii) the operator's policy in relation to requiring a dilution levy together with an explanation of how this policy may affect the future growth of the scheme; and
(b) a statement of the following:
(i) the operator's policy in deciding when to require a dilution levy, including the operator's policy on large deals;
(ii) the estimated rate or amount of any dilution levy or dilution adjustment based either on historical data or future projections;
(iii) the likelihood that the operator may require a dilution levy or make a dilution adjustment and the basis (historical or projected) on which the statement is made.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)