ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
57. Dealing in assets of the scheme
Edition: 2023-12-15 · In force
57. Dealing in assets of the scheme
(1)The fund manager may, without the specific authority of the trustee, give instructions to agents on the acquisition or disposal of assets of the scheme.(2)Where the trustee is of the opinion that a particular acquisition or disposal of property by the fund manager exceeds the power conferred on the fund manager, it is the duty of the fund manager at the fund manager’s expense, to cancel the transaction or make a corresponding acquisition or disposal to secure restoration of the status quo that prevailed before the acquisition or disposal.(3)The trustee may require a fund manager to cancel a transaction or to make a corresponding disposal where the trustee is of the opinion that—(a)the acquisition of assets by the fund manager involves documents of title or documents evidencing title being kept in the custody of a person other than the custodian; and(b)the trustee cannot reasonably be expected to accept the responsibility which would otherwise be placed upon it as a delegator.(4)Where an investment company ceases to have any directors including the Authorized Corporate Director, the custodian shall have power—(a)to retain the services of a licensed person to carry out the functions set out in regulation 43; or(b)provided it is not prohibited from doing so by any rule or prohibition under these regulations to manage the assets under management itself or on behalf of the investment company until in either case—(i)a director is appointed; or(ii)a winding up of the company is commenced.