ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
156. Reconstruction
Edition: 2023-12-15 · In force
156. Reconstruction
(1)A reconstruction of a collective investment scheme is a scheme of arrangement authorized by the Authority whereby—(a)part of the property of a collective investment scheme becomes the property of another collective investment scheme or schemes; or(b)the whole of that property becomes the property of two or more collective investment schemes,whereby participants in the collective investment scheme being reconstructed receive participatory interests in the reconstructed collective investment scheme or schemes in exchange for the property received into that collective investment scheme or schemes.(2)A proposal for reconstruction requires, in respect of the collective investment scheme being reconstructed, the approval of the participants in the scheme.(3)Where it is proposed that assets under management of the collective investment scheme being reconstructed should become property of another collective investment scheme, the proposals will require the approval of the participants in the collective investment scheme being reconstructed, unless that approval would not have been required on an amalgamation by virtue of regulation 151 on the assumption that the assets to be included were treated as a discontinuing scheme.