PRIV 6.1.3 Issue and Redemption of Units Generally

(1) The operator of a scheme must ensure that at each valuation point there are at least as many units in issue of any class as there are units registered to unitholders of that class.

Note Valuation point and class are defined in the glossary.
(2) In issuing or redeeming units, the operator must not do, or fail to do, anything that would, or might, give the operator, or an associated person for the operator, a benefit or advantage at the expense of a unitholder or potential unitholder.

Note Issue, redemption and associated person are defined in the glossary.
(3) If the scheme is an open-ended scheme, the operator must arrange for the issue and redemption of units as required by the latest filed prospectus.

Note Open-ended scheme is defined in r 1.2.7 (1).
(4) If the scheme is an open-ended scheme, the operator must keep a record of the issues and redemptions it makes.
(5) If the operator breaches subrule (1) or (2), it must—
(a) correct the breach as quickly as possible; and
(b) reimburse the scheme any costs the scheme may have incurred in correcting the breach, subject to any reasonable minimum level for reimbursement provided in the latest filed prospectus.

Note Breach is defined in the glossary.
Derived from QFCRA RM/2010-06 (as from 1st January 2011)