ADVOKS GLOBAL · KENYA
The Capital Markets (Alternative Investment Funds) Regulations
18. Transparency
Edition: 2023-12-15 · In force
18. Transparency
(1)The fund manager shall ensure that there is transparency and disclosure of information to investors on all funds it manages, including the following—(a)financial, risk management, operational, portfolio, and transactional information regarding fund investments on a quarterly basis;(b)any fees ascribed to the fund manager and any fees charged to the fund or any investee company by an associate of the fund manager on a quarterly basis;(c)any inquiries or legal actions by legal or regulatory bodies in Kenya on a quarterly basis;(d)any material liability arising during the funds duration or tenure shall be disclosed, as and when occurred;(e)any breach of a provision of the placement memorandum or agreement made with a participant or any other scheme or incorporation documents, if any, as and when occurred;(f)change in control of the fund manager or investee company.(2)The fund manager shall ensure that quarterly reports are provided to participants which shall include the following information, as may be applicable to the fund—(a)financial information of investee companies;(b)material risks and how they are managed which, may include—(i)concentration risk at fund level;(ii)foreign exchange risk at fund level;(iii)leverage risk at fund and investee company levels;(iv)realization risk (change in exit environment) at fund and investee company levels;(v)strategy risk (change in or divergence from business strategy) at investee company level;(vi)reputation risk at investee company level;(vii)extra-financial risks, including environmental, social and corporate governance risks, at fund and investee company level;(viii)any significant change in the key investment team; and information on systemic risk (including the identification, analysis and mitigation of systemic risks); and(ix)any other emerging risks.