ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
12. Criteria for approval
Edition: 2023-12-15 · In force
12. Criteria for approval
(1)A collective investment scheme shall be eligible for approval where—(a)the scheme has—(i)a fund manager who shall be independent of the trustee and custodian;(ii)a trustee, in the case of a trust; and(b)in the case of an investment company reference to the fund manager shall be construed as a reference to its authorized corporate director;(c)the fund manager, trustee and custodian are each—(i)a body corporate incorporated in and with its registered office in Kenya; and(d)the directors of the—(iv)the key personnel of the parties referred to in subparagraphs (i) and (ii) are fit and proper;(e)the aims of the scheme are reasonably capable of being achieved as demonstrated in the investment policy statement;(f)an investment company with fixed capital or a closed ended fund listed on a securities exchange, the participants are either entitled to have their participating interests redeemed or repurchased in the manner provided for in these Regulations; and(g)the price at which participatory interests are sold or redeemed is calculated on the basis of net asset value.(2)In the case of a collective investment scheme constituted as a company—(a)the company has at least three directors one of whom shall be a licensed fund manager;(b)the directors are fit and proper persons to act as directors of such a company;(c)the combination of the experience and expertise of the directors is such as is appropriate for the purposes of carrying on the business of the company; and(d)a fund manager, namely the authorized corporate director, has been appointed by the directors of the company from amongst such of their number as are bodies corporate and not prohibited by scheme regulations from acting in that capacity; and the custodian is independent of the persons appointed as directors of the company.(3)A trustee and a custodian may be one entity subject to the entity demonstrating to the Authority that conflicts of interest are well mitigated.