PRIV 4.1.6 Property Safeguarding Functions of Operator

(1) The operator of a scheme is responsible for the safeguarding of all the scheme property.

Note 1 Scheme property is defined in r 1.2.3.

Note 2 See also guidance to r 2.1.2 (2) (g).
(2) Without limiting subrule (1), the operator must—
(a) ensure that all the scheme property is properly accounted for; and
(b) ensure that all the scheme property is—
(i) clearly identified as scheme property; and
(ii) held separately from the operator's own property and the property of any other person; and
(c) ensure that any scheme property in registrable form is appropriately registered as soon as practicable; and
(d) take into its custody or control under this rule all documents evidencing title to scheme property, other than in relation to derivatives and forward positions; and

Note Document evidencing title and derivative are defined in the glossary.
(e) ensure that any resulting benefit of a derivative or forward transaction is received by it for the scheme property; and
(f) collect, hold and deal with income in relation to the scheme property.
(3) If the operator is of the opinion that a deal in property in relation to the scheme breaches these rules or the constitutional document, the operator must, subject to the constitutional document—
(a) cancel the transaction or make a disposal or acquisition to restore the previous situation; and
(b) meet any resulting loss or expense.

Note Deal and breach are defined in the glossary.
Derived from QFCRA RM/2010-06 (as from 1st January 2011)