ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
154. Amalgamation and reconstruction
Edition: 2023-12-15 · In force
154. Amalgamation and reconstruction
(1)Neither a collective investment scheme nor a sub-fund of a collective investment scheme shall be subject to an amalgamation or reconstruction, which would result in the participants becoming participants in any other entity other than a licensed scheme or a recognised scheme.(2)Where, for the purpose of an amalgamation or reconstruction, it is proposed that the assets under management of a collective investment scheme, or assets under management attributable to a sub-fund of collective investment scheme, should become the property of another licensed scheme or sub-fund or equivalent separately pooled part of a licensed scheme, the proposal shall not be implemented without the sanction of an extraordinary resolution of the participants of the collective investment scheme or, as the case may be, of the class or classes of participatory interests related to the sub-fund.(3)Where it is proposed that a collective investment scheme or sub-fund of a collective investment scheme should receive property as a result of a scheme of amalgamation or reconstruction of some other collective investment scheme or sub-fund (or equivalent separately pooled part) of such a scheme then the proposal shall not be implemented without the sanction of an extraordinary resolution of the holders of the participatory interests of the collective investment scheme or, as the case may be, of the class of participatory interests related to the sub-fund, unless subregulation (4) applies.(4)This subregulation applies where the fund manager is reasonably satisfied that the inclusion of the property concerned—(a)is not likely to result in any material prejudice to the interests of the participants of the collective investment scheme;(b)is consistent with the objectives of the collective investment scheme or sub-fund; and(c)could be effected without any breach of management of collective investment schemes under Part V.(5)The fund manager may at any time carry out a valuation of the assets under management for the purpose of effecting a scheme of amalgamation or reconstruction, and such a valuation does not create a valuation point for the purposes of dealings.(6)The fund manager may carry out a valuation of the assets under managements on the day on which the annual or half yearly accounting period ends and—(a)if that day is not a dealing day; or(b)if the accounting period ends on a day before or after the period of that day which is the dealing day,that valuation does not create a valuation point for the purposes of dealings.