ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
73. Annual allocation of income
Edition: 2022-12-31 · In force
73. Annual allocation of income
(1)At the end of each accounting period, the trustee, board of directors or the fund manager, as the case may be, shall arrange for the custodian to transfer the income of a collective investment scheme portfolio to an account to be known as 'the distribution account'.(2)The trustee, board of directors or the fund manager, as the case may be, are not obliged to comply with subregulation (1) if it appears to them that the average the allocations of income from the distribution account to the holders would be less than such minimum amount as may be prescribed in the information memorandum.(3)Any income that in accordance with subregulation (2) is not transferred to the distribution account must be carried forward to the next accounting period and be regarded as received at the start of the next period and the fund manager shall disclose the maximum number of periods in which any income in accordance with this subregulation can be carried forward.(4)The calculation of the available income shall be as follows—(a)take the aggregate of the income of a collective investment scheme portfolio received or receivable for the account of the collective investment scheme in respect of the period;(b)deduct the charges and expenses of the collective investment scheme paid or payable out of the income of the collective investment scheme portfolio in respect of the period;(c)add the fund manager's best estimate of any relief from tax on such charges and expenses;(d)make such other adjustments as the fund manager considers appropriate (in the case of subparagraph (i) and (ii), after consulting the auditors) in relation to—(ii)the proportion of the price received or paid for shares that is related to income (taking account of any provisions in the incorporation documents relating to equalisation);(iii)potential income which is unlikely to be received until twelve months after the income allocation date;(iv)income which should not be accounted for on an accrual basis because of lack of information about how it accrues;(v)any transfer between income and capital account; and(vi)any other adjustments that the fund manager considers appropriate after consulting the auditors.(e)on or before the annual income allocation date, the fund manager shall allocate the available income to the shares of each class in issue taking account of the provision of its incorporation documents relating to the proportion of available income attributable to each class in the case of an umbrella scheme.