ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
114. Transfer of participatory interests by act of parties
Edition: 2023-12-15 · In force
114. Transfer of participatory interests by act of parties
(1)Subject to subregulation (2), every participant shall be entitled to transfer participatory interests held by him or her in respect of which he or she is entered in the register by an instrument of transfer in any usual or common form or in such other lawful form as the fund manager may from time to time approve.(2)The fund manager is not under any duty to accept a transfer—(a)if the number or value of the participatory interests sought to be transferred would result in the participant, or the transferee, holding less than any number or value stated in the scheme documents as the minimum number to be held; or(b)if the scheme documents contain a limitation upon the categories of persons who may be a participant and the transferee is not within one of those categories.(3)Every instrument of transfer of participatory interests shall be signed by or on behalf of the participant transferring the participatory interests or, in the case of a body corporate, duly executed pursuant to its incorporation documents and, unless the transferee is the fund manager, the transferor shall be deemed to remain the participant until the name of the transferee has been entered in the register.(4)Every instrument of transfer, duly stamped if it is required to be stamped, must be left for registration accompanied by—(a)any necessary declarations or other documents that may be required in consequence of any legislation now or from time to time in force; and(b)such other evidence as the fund manager may require to prove the right of the transferor to transfer the participatory interests or, in the case of a body corporate, the authority of the signatory on its behalf.(5)All instruments of transfer which shall be registered shall be retained by the fund manager in original copy or digital form for a minimum period of seven years.(6)Upon registration of an instrument of transfer, a reference shall be made on the register enabling the name of the transferor and the transferee and the date of transfer to be identified.