ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
41. Reuse of assets
Edition: 2023-12-15 · In force
41. Reuse of assets
(1)The assets entrusted to or held in custody by a trustee or custodian shall not be reused by the trustee or custodian, or by any third party to which the custody function has been delegated, for their own account.(2)Without prejudice to the generality of subregulation (1), the assets may be reused where—(a)the reuse of the assets is executed for the account of the collective investment scheme;(b)the trustee is carrying out the recommendations of the fund manager;(c)the reuse is for the benefit of the collective investment scheme and in the interest of the participants; and(d)the transaction is covered by high-quality and liquid collateral received by the collective investment scheme under a title transfer arrangement.(3)The market value of the collateral shall, at all times, amount to at least the market value of the reused assets plus a premium.(4)For purposes of this regulation, "reuse" shall comprise any transaction of assets held in custody including transferring, pledging, selling and lending.