ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
17. Duties of a fund manager
Edition: 2022-12-31 · In force
17. Duties of a fund manager
(1)A fund manager of a collective investment scheme shall carry out the administration of the fund including the management of the portfolio of investments in accordance with the direction and the authority of the trustee or the board of directors, as the case may be, as well as the provisions of the incorporation documents, the information memorandum, the rules of the collective investment scheme and these Regulations.(2)The principal duties of a fund manager shall include but shall not be restricted to—(a)advising the trustee or board of directors, as the case may be, on the asset classes which are available for investment;(b)formulating a prudent investment policy;(c)investing the scheme's assets in accordance with the scheme's investment policy;(d)reinvesting any income of the scheme fund which is not required for immediate payments;(e)instructing the custodian to transfer, exchange, deliver in the required form and manner the scheme assets held by such custodian;(f)ensuring that the shares or units in the collective investment scheme are priced in accordance with the information memorandum, the rules of the collective investment scheme and these Regulations;(g)not selling any shares otherwise than on the terms and at a price calculated in accordance with the provisions of the information memorandum, rules of the collective investment scheme or these Regulations;(h)rectifying any breach of matters arising under paragraph (f) or (g) provided that where the breach relates to incorrect pricing of shares or to the late payment in respect of the issue or redemption of shares, rectification shall, unless the trustee or board of directors, as the case may be, otherwise directs, extend to the reimbursement or payment or arranging the reimbursement or payment of money by the fund manager to the holders or former holders, by the fund manager to the scheme, or by the scheme to the fund manager;(i)purchasing at the request of a holder, any shares held by such holder on the terms and at a price calculated in accordance with the provisions hereof;(j)publishing daily the price of shares in at least two daily newspapers of national circulation, published in the English language:Provided that where a collective investment scheme is not dealing on a daily basis, there shall be at least one publication a month of the prices of shares in at least two daily newspapers of national circulation, at least three days before the dealing day, specifying therein the date of the dealing day.(k)preparing and timeously dispatching all cheques, warrants, notices, accounts, summaries, declarations, offers and statements required under the provisions of the information memorandum, rules of the collective investment scheme or these Regulations, to be issued, served or sent and signing and executing all certificates and all transfers of securities;(l)making available for inspection to the trustee or board of directors or any approved auditor appointed by the trustee or directors, the records and the books of account of the fund manager giving to the trustee or board of directors or to any such auditor such oral or written information as it or he requires with respect to all matters relating to the fund manager, its properties and its affairs;(m)making available or ensuring that there is made available to the trustee or board of directors such details as the trustee or board of directors may require with respect to all matters relating to the collective investment scheme; and(n)being fair and equitable in the event of any conflict of interest that may arise in the course of its duties.(3)A fund manager shall not engage or contract any advisory or management services on behalf of a collective investment scheme without prior written approval of the trustee or the board of directors:Provided that—(a)the fund manager shall remain liable for any act or omission of the sub-contracted fund manager;(b)the fees and expenses of any such persons shall be payable by the fund manager and shall not be payable out of the collective investment scheme portfolio;(c)any expenses incurred by any such persons which, if incurred by the fund manager would have been payable out of the collective investment scheme portfolio, may be paid out of the collective investment scheme portfolio to the fund manager by way of reimbursement; and(d)any such appointment or termination of appointment shall be notified in writing to all holders.(4)All monetary benefits or commissions arising out of managing scheme funds shall be credited to the scheme fund by the fund manager.(5)The fund manager shall account to the trustee within thirty days after receipt by the fund manager any monies payable to the trustee.(6)Every fund manager shall issue a receipt evidencing the purchase of shares of the collective investment scheme for each purchase.(7)The fund manager shall issue a certificate of entitlement to the holders every thirty days, specifying any shares held by any holder and showing the transactions in the holder's account during the preceding month and which shall be prima facie evidence of the title of the holder to the units or shares.