ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
121. Other payments out of the property of the scheme
Edition: 2023-12-15 · In force
121. Other payments out of the property of the scheme
(1)No payments may be made out of the property of the scheme other than payments under Part XI and sums due by virtue of any other provision in these Regulations and the following—(a)broker’s commission, fiscal charges and other disbursements which are—(i)necessary to be incurred in effecting transactions for the scheme; and(ii)normally shown in contract notes and confirmation notes as appropriate;(b)interest on borrowings permitted under the scheme and charges incurred in effecting or terminating such borrowings or in negotiating or varying the terms of such borrowings;(c)taxation and duties payable in respect of the property of the scheme, the incorporation documents or the issue of participatory interests; and(d)any costs incurred in modifying the incorporation documents, including costs incurred in respect of meetings of participants convened for purposes which include the purpose of modifying the trust deed, where the modification is—(i)necessary to implement, or necessary as a direct consequence of any change in the law, including changes in these Regulations;(ii)expedient having regard to any change in the law made by or under any fiscal enactment and which the fund manager and the trustee or custodian agree is in the interest of participants; or(iii)to remove from the deed, obsolete provisions;(e)any costs incurred in respect of meetings of participants convened on a requisition by participants not including the fund manager or an associate of the fund manager; and(f)liabilities arising on unitization, amalgamation or reconstruction;(g)the audit fee properly payable to the auditor and any value added tax on it and any proper expenses of the auditor; and(h)the scheme fees of the Authority.(2)In a case where the property of a scheme (transferor) is transferred to another scheme (transferee) in consideration of the issue of participatory interests in the transferee to participants of the transferor, the trustee or custodian may pay out of the property of the transferee, any liability arising after the transfer which had it arisen before the transfer, could properly have been paid out of the transferred property.(3)The trustee may only make the payments in subregulation (2) if—(i)there is nothing in the incorporation documents of the transferor expressly forbidding the payment; and(ii)the trustee is of the opinion that proper provision was made by the transferor for meeting such liabilities as were known or could reasonably have been anticipated at the time of the transfer.(4)Other payments may be made from the property of the transferor provided that they are authorized, reflected and disclosed in transferee’s incorporation documents.