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Requirements relating to the purchase of units from participants in a collective investment scheme by the responsible person for the scheme in the circumstances set out in regulation 8(4)(d), 10AA(3)(d) or 10AB(3)(d)

Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005

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SECOND SCHEDULERegulations 8(4)(d), 10AA(3)(d) and 10AB(3)(d)Requirements relating to the purchase of units from participants in a collective investment scheme by the responsible person for the scheme in the circumstances set out in regulation 8(4)(d), 10AA(3)(d) or 10AB(3)(d)1. Where any offer to purchase units in a collective investment scheme (referred to in this Schedule as the Scheme) is required to be made as a result of the occurrence of an event referred to in sub-paragraph (d)(i) or (ii) of regulation 8(4), sub-paragraph (d)(i) or (ii) of regulation 10AA(3) or sub-paragraph (d)(i) or (ii) of regulation 10AB(3), the responsible person for the Scheme shall, subject to paragraph 10 of this Schedule —(a)make an announcement of the offer to all participants in the Scheme within 16 days after the occurrence of the event; and(b)make the offer within 30 days after the occurrence of the event.[S 170/2020 wef 16/03/2020]2. Where any offer to purchase units in the Scheme is made, at least 10% of the total value of the assets of the Scheme shall be made available to satisfy purchase requests received by the responsible person for the Scheme from the participants in the Scheme pursuant to the offer.[S 170/2020 wef 16/03/2020]3. The responsible person for the Scheme shall give adequate notice to all participants in the Scheme of any offer to purchase units in the Scheme.[S 170/2020 wef 16/03/2020]4. Any offer to purchase units in the Scheme shall state —(a)the indicative price at which each unit will be purchased;(b)the period during which the offer will remain open;(c)the assets and borrowings of the Scheme which are to be made available to satisfy purchase requests received by the responsible person for the Scheme from the participants in the Scheme pursuant to the offer and, in the case of non-cash assets, the amount of cash that is expected to be available from the sale of such assets;[S 170/2020 wef 13/03/2020](d)that —(i)if the total amount of cash (including cash from the sale of non-cash assets and borrowings, if any) which is to be made available to satisfy purchase requests made by the participants in the Scheme pursuant to the offer (referred to in this Schedule as the total available amount of cash) is sufficient to satisfy all purchase requests received by the responsible person for the Scheme from the participants in the Scheme pursuant to the offer, all purchase requests will be satisfied in full; and[S 170/2020 wef 16/03/2020](ii)if the total available amount of cash is insufficient to satisfy all purchase requests made by the participants in the Scheme pursuant to the offer, the purchase requests will be satisfied on a pro-rata basis in proportion to the number of units which is the subject of each purchase request;(e)that the actual price at which units are to be purchased (as determined by reference to the latest available valuations of the assets of the Scheme, after deducting appropriate transaction costs) may differ from the indicative price referred to in sub-paragraph (a) due to changes in the value of the assets of the Scheme during the offer period;(f)that a participant in the Scheme shall, when making a purchase request, state whether he wishes to proceed with the purchase if his purchase request cannot be satisfied in full;(g)that purchase requests made by participants in the Scheme pursuant to the offer will be satisfied within 30 days after the closing date of the offer unless such period is extended in accordance with paragraph 7 of this Schedule; and(h)that the offer may be withdrawn in accordance with paragraph 10(b) of this Schedule.[S 669/2018 wef 08/10/2018]5. Where any offer to purchase units in the Scheme is made as a result of the occurrence of an event specified in —(a)sub-paragraph (d)(i) of regulation 8(4), sub-paragraph (d)(i) of regulation 10AA(3) or sub-paragraph (d)(i) of regulation 10AB(3), the offer shall remain open for a period of not less than 21 days but not more than 35 days, except where trading in the units in the Scheme resumes as specified in paragraph 10 of this Schedule, in which case the responsible person shall comply with that paragraph; or[S 170/2020 wef 16/03/2020](b)sub-paragraph (d)(ii) of regulation 8(4), sub-paragraph (d)(ii) of regulation 10AA(3) or sub-paragraph (d)(ii) of regulation 10AB(3), the offer shall remain open for a period of not less than 21 days but not more than 35 days.[S 170/2020 wef 16/03/2020]6. No purchase request made by a participant in the Scheme pursuant to any offer to purchase units in the Scheme shall be satisfied until after the closing date of the offer.7. All purchase requests made by the participants in the Scheme pursuant to any offer to purchase units in the Scheme shall be satisfied within 30 days after the closing date of the offer, but such period may be extended —(a)to 60 days after the closing date of the offer if the responsible person for the Scheme satisfies the following that the extension is in the best interest of the participants of the Scheme:(i)where the Scheme is constituted as a unit trust — the trustee for the Scheme;(ii)where the Scheme is constituted as a non-umbrella VCC or a sub-fund of an umbrella VCC — the directors of the VCC; or[S 170/2020 wef 16/03/2020](b)beyond 60 days after the closing date of the offer if such period of extension is approved by all participants in the Scheme.8. Where the total available amount of cash is sufficient to satisfy all purchase requests made by the participants in the Scheme pursuant to the offer, all purchase requests shall be satisfied in full.9. Where the total available amount of cash is insufficient to satisfy all purchase requests made by the participants in the Scheme pursuant to the offer, the purchase requests shall be satisfied on a pro-rata basis, in proportion to the number of units in the Scheme which is the subject of each purchase request.10. Where trading in the units in the Scheme resumes on an approved exchange within 30 days after the occurrence of the event specified in sub-paragraph (d)(i) of regulation 8(4), sub-paragraph (d)(i) of regulation 10AA(3) or sub-paragraph (d)(i) of regulation 10AB(3) —(a)the responsible person for the Scheme need not make an offer to purchase units in the Scheme; or[S 170/2020 wef 16/03/2020](b)if the responsible person for the Scheme has, prior to the resumption of trading in the units in the Scheme, made such an offer, the offer may be withdrawn by the responsible person, subject to the responsible person satisfying all purchase requests made by the participants in the Scheme pursuant to the offer which were received by the responsible person before the withdrawal of the offer.[S 669/2018 wef 08/10/2018][S 170/2020 wef 16/03/2020]11. Where any offer to purchase units in the Scheme has been made as a result of the occurrence of an event specified in sub-paragraph (d)(i) or (ii) of regulation 8(4), sub-paragraph (d)(i) or (ii) of regulation 10AA(3) or sub-paragraph (d)(i) or (ii) of regulation 10AB(3) (as the case may be), the responsible person for the Scheme must offer to purchase units in the Scheme at least once every year from the closing date of the last offer to purchase units and, in the case of the event specified in sub-paragraph (d)(i) of regulation 8(4), sub-paragraph (d)(i) of regulation 10AA(3) or sub-paragraph (d)(i) of regulation 10AB(3) (as the case may be), an offer must continue to be made with that frequency for as long as trading in the units in the Scheme does not resume on an approved exchange.[S 170/2020 wef 16/03/2020]

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