ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
39. Control by the trustee of the assets of the scheme
Edition: 2023-12-15 · In force
39. Control by the trustee of the assets of the scheme
(1)The trustee shall ensure that assets of a collective investment scheme are—(b)segregated from—(i)the trustee’s own assets;(ii)the assets of the fund manager and the fund manager’s related entities; and(iii)the assets of other collective investment schemes and other clients of the trustee.(2)The relationship between the fund manager and trustee shall be formally documented in a contract which shall include provisions about the scope of the trustee’s responsibility and liability.(3)The trustee shall ensure that the custodian takes into custody all the scheme assets and holds them in trust for the holders and that custody arrangements for the assets of the collective investment scheme are monitored on an ongoing basis.(4)The trustee shall take all steps and execute all documents which are necessary to ensure that the acquisitions, disposals and loans properly made by the fund manager are completed.(5)The trustee shall cause the collection of any income due to be paid to the scheme and hold any income received in trust for the participants in accordance with these Regulations and the trust deed.(6)The trustee shall keep such records as are necessary—(a)to enable the trustee to comply with these Regulations; and(b)to demonstrate that such compliance by the trustee has been achieved.