PRIV 7.3.2 Transfer Schemes

(1) Financial Services Regulations, part 16 is modified in accordance with the following provisions of this rule.
(2) If, for the purpose of a relevant scheme, it is proposed that scheme property of a scheme should become the property of another scheme registered in the QFC or the property of a subscheme of an umbrella scheme registered in the QFC, the proposal must not be implemented without the approval of a special resolution of the unitholders of the first scheme, unless subrule (3) applies.

Note Subscheme and umbrella scheme are defined in r 1.2.8. Special resolution is defined in the glossary.
(3) If, for the purpose of a relevant scheme, it is proposed that scheme property attributable to a subscheme (the first subscheme) of an umbrella scheme (the first umbrella scheme) should become the property of another scheme registered in the QFC or another subscheme of an umbrella scheme registered in the QFC (whether or not of the first umbrella scheme), the proposal must not be implemented without the approval of—
(a) a special resolution of the unitholders in the first subscheme; and
(b) a special resolution of the unitholders of units in the first umbrella scheme, unless implementation of the scheme is not likely to result in any material prejudice to the interests of the unitholders in any other subscheme of the first umbrella scheme.
(4) If it is proposed that a scheme or a subscheme of an umbrella scheme should receive property (other than its first property) under a relevant scheme, or an arrangement equivalent to a scheme of arrangement, that is entered into by another scheme registered in the QFC, by a subscheme of an umbrella scheme registered in the QFC or by corporation, the proposal must not be implemented without the approval of a special resolution of the unitholders of the first scheme or of the class or classes of units related to the first subscheme (as appropriate).

Note Corporation is defined in the glossary.
(5) However, if the operator agrees that the receipt of the property by the scheme or subscheme as mentioned in subrule (4)—
(a) is not likely to result in any material prejudice to the interests of the unitholders of the scheme; and
(b) is consistent with the investment objectives, strategies and policy of the scheme or subscheme;
the property may be transferred to the scheme or subscheme, and units may be issued in exchange for the property, as part of the relevant scheme without the approval of a special resolution.
(6) To remove any doubt, relevant scheme has the meaning given by theFinancial Services Regulations, article 94 (4).
Derived from QFCRA RM/2010-06 (as from 1st January 2011)