PRIV S2.22 Information on Umbrella Schemes

For an umbrella scheme, the following information:

(a) that a unitholder may exchange units in a subscheme for units in any other subscheme (other than a subscheme that has limited the issue of units);
(b) that an exchange of units in a subscheme for units in another subscheme is treated as a redemption and issue;
(c) that a unitholder who exchanges units in a subscheme for units in any other subscheme does not have the right to withdraw from or cancel the transaction;
(d) the policy for allocating between subschemes any assets of, or costs, charges and expenses payable out of, scheme property that are not attributable to any particular subscheme;
(e) what charges (if any) may be made on exchanging units in a subscheme for units in another subscheme;
(f) for each subscheme — the currency in which the scheme property attributed to it must be valued, and the price of units calculated and payments made, if this currency is not the base currency of the umbrella scheme;
(g) for an umbrella scheme constituted by a CIC — that the subschemes are not 'ring-fenced' and, if the umbrella scheme cannot meet liabilities attributable to any particular subscheme out of the assets attributable to that subscheme, the remaining liabilities may have to be met out of the assets attributable to other subschemes.
Derived from QFCRA RM/2010-06 (as from 1st January 2011)