ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
52. Functions of fund manager
Edition: 2023-12-15 · In force
52. Functions of fund manager
(1)A fund manager shall—(a)carry out the administration of the fund, including the management and control of the collective investment scheme, in accordance with the provisions of the scheme documents and these Regulations; and(b)ensure that payments due on behalf of the scheme are made as required.(2)The principal duties of a fund manager shall include—(a)advising the trustee, on the asset classes which are available for investment;(b)formulating a prudent investment policy;(c)investing the scheme’s assets in accordance with the scheme’s investment policy including reinvestment of any income of the fund—(i)subject to consent by the trustee, transferring, exchanging or delivering in the required form and manner the scheme assets held by the custodian;(ii)ensuring that the shares in the investment company or units in the collective investment scheme are priced in accordance with the scheme documents and these Regulations; and(iii)not selling any shares or units otherwise than on the terms and at a price calculated in accordance with the provisions of the scheme documents, rules of the collective investment scheme or these Regulations;(d)rectifying any breach of matters arising under subparagraph (a) or (g) provided that where the breach relates to incorrect pricing of shares or to the late payment in respect of the issue or redemption of shares, rectification shall, unless the trustee otherwise directs, extend to the reimbursement or payment or arranging the reimbursement or payment of money—(i)by the fund manager to the holders or former holders;(ii)by the fund manager to the scheme; or(iii)by the scheme to the fund manager;(e)to at the request of a holder, purchasing any shares held by the holder on the terms and at a price calculated in accordance with the provisions in these Regulation;(f)publishing daily or in such periodic intervals as may be set out in an Information Memorandum, the price of shares or units in a widely accessible medium or as the Authority may guide, where necessary;(g)preparing and timeously dispatching all warrants, notices, accounts, summaries, declarations, offers and statements required under the provisions of the information memorandum, rules of the collective investment scheme or these Regulations, to be issued, served or sent and signing and executing all certificates and all transfers of securities;(h)making accessible for inspection to the trustee, or any approved auditor appointed by the fund manager with the approval of the trustee, the records and the books of account of the fund manager;(i)giving to the trustee or custodian or to any such auditor referred to in subparagraph (h) such oral or written information as the trustee, custodian or auditor requires with respect to all matters relating to the fund manager, its properties and its affairs;(j)making available or ensuring that there is made available to the trustee or custodian such details as the trustee or custodian may require with respect to all matters relating to the collective investment scheme;(k)being fair and equitable in the event of any conflict of interest that may arise in the course of its duties; and(l)maintaining a website disclosing, in detail, information relating to the collective investment scheme and any of its funds.(3)The fund manager shall credit the monetary benefits arising out of managing scheme funds to a bank account opened in the name of the scheme under the control of the trustee.(4)The fund manager shall issue to each participant for each purchase, a document evidencing the purchase of participatory interest in the collective investment scheme.(5)The fund manager shall issue a statement to the participants at least once in each month, specifying any participatory interests held by any participant and showing the transactions in the participant’s account during the preceding month and which shall be evidence of the title of the participant to the participatory interests.(6)The fund manager’s proprietary investment or non- investment in the scheme shall be disclosed in the quarterly performance report.