PRIV 7.1.1 Suspension and Restart of Dealings

(1) The operator of an open-ended scheme may, within any parameters that are fair and reasonable to all unitholders and are set out in the latest filed prospectus, temporarily suspend dealings in all units or a class of units.

Note Open-ended scheme is defined in r 1.2.7 (1). Latest filed prospectus, deal and class are defined in the glossary.
(2) The operator may suspend dealings under subrule (1) only if the operator has decided, having regard to the interests of all the unitholders in the scheme and on reasonable grounds, that there is a good and sufficient reason for the suspension in the interests of unitholders or potential unitholders.
(3) If the operator decides to suspend dealings, the operator must tell the Regulatory Authority about the suspension and the reasons for it immediately, but within 1 business day after the day the operator makes the decision.

Examples for this rule on 'within 1 business day'
See examples to rule 4.1.4 (2) on the meaning of 'within 1 business day'.
(4) The operator must also notify the unitholders about the suspension as soon as practicable after the suspension starts.
(5) The operator must ensure that the suspension continues only for as long as it is justified having regard to the interests of all the unitholders in the scheme.
(6) The suspension of dealings must end as soon as subrule (5) no longer applies.
(7) The operator must—
(a) review the suspension at least every 28 days; and
(b) tell the Regulatory Authority about the result of the review immediately, but within 1 business day after conducting the review.
(8) If the operator becomes aware of any material change in circumstances that may affect the continuation of the suspension, the operator must tell the Regulatory Authority about the change immediately, but within 1 business day.
(9) The Regulatory Authority may, at any time, direct the operator to end the suspension.
(10) The operator must immediately comply with the direction.
(11) If the suspension ends, the operator must tell the Regulatory Authority about the restart of dealings immediately, but within 1 business day after the day dealings restart.

Note The Regulatory Authority has power under the Financial Services Regulations, art 105 to give certain directions in relation to collective investment schemes (which are called collective investment funds in those regulations), including a direction to cease the issue or redemption of units in the scheme and to wind up the scheme.
Derived from QFCRA RM/2010-06 (as from 1st January 2011)