IFM09520 - Changes in and Breaches of Qualifying conditions and notification requirements: Breaches of qualifying conditions
The regulations set out the consequences where a breach of any of the qualifying conditions occurs. In some cases, this includes cure periods to allow a scheme time to rectify breaches. The term ‘cure period’ is not used in the regulations, but is used here as a descriptive term for the effect of the rules.
The default position is set out in Regulation 20, which states that a scheme ceases to be a RIF when it ceases to meet one or more of the qualifying conditions. Where there is no cure period then the scheme will exit the RIF regime (IFM09600). In such cases, a scheme ceases to be a RIF from the beginning of the first day on which it ceases to meet one or more of those conditions.
However, cure periods may apply where there is a breach of the ownership (IFM09530) or restriction (IFM09540) requirements.