ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
159. Manner of winding up
Edition: 2023-12-15 · In force
159. Manner of winding up
(1)In a case falling within regulation 158(2)(d) or 158 (2)(e), the trustee shall wind up the scheme in accordance with the approved scheme of amalgamation or reconstruction.(2)In any other case falling within regulation 158—(a)the trustee or custodian shall, as soon as practicable after the scheme falls to be wound up, realise the property of the scheme and, after paying out or retaining adequate provision for all liabilities properly so payable and retaining provision for the costs of the winding up, distribute the proceeds of that realisation to the participants and the fund manager proportionately to their respective interests in the scheme as at the date of the relevant event referred to in regulation 158(2); and(b)any unclaimed net proceeds or other case (including unclaimed distribution payments) held by the trustee shall be dealt with as provided under the law on unclaimed financial assets subject to the trustee or custodian having a right to retain any expenses incurred by it in making and relating to that payment.(3)Where the trustee and one or more participants agree, the requirement in subregulation (2) to realise the property of the scheme shall not apply to that part of the property proportionate to the entitlement of that or those participants, and the trustee may distribute that part in the form of property, after making such adjustments or retaining such provision as appears to the trustee or depositary appropriate for ensuring that those participants bear a proportional share of the liabilities and costs.(4)This regulation is subject to the terms of any scheme of amalgamation or reconstruction sanctioned by participants by way of a special resolution passed on or before the date of winding up or amalgamation.(5)The fund manager may agree with one or more participants to distribute assets under management in actual form to that or those participants in proportion to their respective rights to participate on condition that such participants bear the proportion of the liabilities of the scheme and the expenses of the distribution attributable to them.(6)Subregulation (5) shall not apply to proprietary assets of the fund manager.(7)Nothing in this Part requires the trustee to distribute proceeds of a realisation to any participant in any case where the fund manager or the trustee considers it necessary or appropriate to carry out or complete identification procedures in relation to the participant or another person pursuant to a statutory obligation.(8)On completion of the winding up in respect of the events referred to in paragraphs (b), (c), (d) or (e) of regulation 158(2), the trustee shall notify the Authority in writing of that fact and at the same time, the trustee or board of directors shall request the Authority to revoke the approval and the trustee or board of directors shall publish a notice of the winding up on their website and in a newspaper of nationwide circulation.(9)Where any sum of money including unclaimed distributions, stands to the account of the scheme at the date of its dissolution, the fund manager shall pay as is provided under the law relating to unclaimed financial assets.