ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
127. Requirements for special interest unit trust
Edition: 2022-12-31 · In force
127. Requirements for special interest unit trust
A special interest collective investment special scheme shall comply with the following requirements—(a)application and registration for a special interest unit trust shall be accompanied with the following information and documents—(i)proposed trust deed and scheme rules;(ii)names of the proposed trustees;(iii)board of directors or promoter resolution approving the establishment of a special interest collective investment scheme and the appointment of the proposed trustees;(iv)holders approval for the establishment of the special interest collective investment scheme and the terms of the trust deed (where already obtained); and(v)any other information that the Authority may require.(b)every trust deed to a special interest collective investment scheme shall include the following particulars—(i)parties to the trust deed;(ii)interpretation of terms used in the trust deed;(iii)declaration of trust;(iv)appointment and removal procedures for trustees;(v)procedure for creation and issuance of units;(vi)method of pricing and valuation of units;(vii)procedure for repurchase of units;(viii)procedure for income distribution;(ix)apportionment of unit holders' entitlements in respect of dividends, rights and capitalization issues;(xi)restrictions on trustees;(xii)trustees fees and charges;(xiii)liability of the trustees;(xiv)register of holders and records of trust fund charges and commissions;(xv)audit and periodic reports;(xvi)procedures for winding up;(xvii)procedure for variation of trust deed; and(xviii)procedure for settlement of disputes.(c)every special interest collective investment scheme shall have scheme rules which shall include the following—(i)eligibility of membership;(ii)procedure for saving and/or acquisition and repurchase of units;(iii)maximum individual holding;(iv)holders rights in respect of units;(v)pricing and valuation of units; and(vi)entitlement to holders in the event of reconstruction or winding up.