ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
38. Resignation of a custodian
Edition: 2022-12-31 · In force
38. Resignation of a custodian
(1)The custodian shall not be entitled to resign except upon the appointment of a new custodian and if the custodian wishes to resign it shall give three months notice in writing to that effect to the board of directors or the fund manager, as the case may be and the Authority and the custodian shall give reasons for the resignation.(2)The fund manager shall appoint within two months after the date of a notice under subregulation (1) some other qualified person as the new custodian upon and subject to such person being approved by the Authority and entering into an agreement similar to the agreement comprised in the incorporation documents.(3)If the fund manager is unable to appoint a new custodian as within the period of two months, the custodian shall be entitled to appoint a qualified company selected by it as the new custodian on the same basis as a custodian appointed under Regulation 34.(4)On receipt of the notice by the trustee, board of directors or the fund manager as the case may be, the agreement between the board of directors, fund manager as the case may be and the custodian shall be deemed to have been terminated.(5)In the event the custodian desiring to retire or ceasing to be registered as a custodian with the Authority, the fund manager, may with the approval of the Authority appoint another eligible person to be a custodian in its place.