ADVOKS GLOBAL · KENYA
The Capital Markets (Alternative Investment Funds) Regulations
4. Eligibility criteria
Edition: 2023-12-15 · In force
4. Eligibility criteria
(1)The Authority shall consider the following conditions for eligibility of grant of approval—(a)the formation documents which—(i)shall conform with the Second Schedule;(ii)shall not include any provision which is unfairly prejudicial to the interests of participants; and(iii)shall demonstrate its authority or power to carry on the activity of an alternative investment fund;(b)an alternative investment fund shall not make an invitation to the public to subscribe to its securities;(c)the directors, trustees or partners of the applicant, or their equivalent, are fit and proper persons as provided under the Act;(d)the key investment team of the fund manager has adequate experience, with at least one key person having not less than five years’ experience in—(i)advising or managing pools of capital;(ii)fund, asset, wealth or portfolio management;(iii)the business of buying of, selling of and dealing in securities or other financial assets; and(iv)has relevant professional qualifications;(e)the fund manager has the necessary infrastructure and human resources to effectively discharge its activities;(f)the fund manager has, on behalf of the alternative investment fund, clearly described at the time of approval—(i)the investment objective;(ii)the targeted investor;(iii)the proposed scheme assets;(iv)the investment policy or strategy; and(v)the proposed tenure of the alternative investment fund; and(g)the entity or any other entity established by the fund manager has not previously been denied approval by the Authority.(2)The following arrangements shall not be considered as alternative investment funds for the purposes of these Regulations—(b)an employee participation scheme or employee savings scheme;(d)a securitisation special purpose vehicle; and where the pooling is by members of a club or association, whether or not incorporated, and the members can reasonably be regarded as having a common interest with each other and with the club or association in the affairs of the club or association and in what is to be done with the proceeds of the offer;