PRIV 6.4.2 Removal of Operator

(1) The unitholders of a scheme may, in accordance with the constitutional document—
(a) remove the operator; and
(b) appoint another person as the operator of the scheme.

Note Constitutional document is defined in r 3.1.1.
(2) Without limiting subrule (1), the unitholders must, under that subrule, remove the operator (and appoint another person as the operator of the scheme) if the operator is no longer eligible to be the operator of the scheme under rule 4.1.1 (Requirements for operator) because of action taken by the Regulatory Authority under the Financial Services Regulations, whether or not under article 31 (Own initiative action by Regulatory Authority).
(3) The person appointed as operator under subrule (1) must be eligible to be the operator of the scheme under rule 4.1.1.
(4) If a replacement operator is appointed under subrule (1), the replacement operator must tell the Regulatory Authority about the appointment immediately, but within 1 business day after the day the appointment is made.

Examples

See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
(5) On the removal of the former operator under subrule (1), the former operator is released from all further obligations under these rules and the constitutional document.

Note Constitutional document is defined in r 3.1.1.
(6) Subrule (5) does not affect the rights of a person in relation to an act or omission of the former operator before its removal.
(7) If the name of the scheme contains a reference to the name of the former operator, the former operator is entitled to require the replacement operator to propose a change to the name of the scheme.
(8) This rule does not affect—
(a) any right to the compensation that the former operator has under the constitutional document; or
(b) any right that the former operator has under the constitutional document in relation to units held by the operator.
Derived from QFCRA RM/2010-06 (as from 1st January 2011)