ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
61. Removal and replacement of fund manager
Edition: 2023-12-15 · In force
61. Removal and replacement of fund manager
(1)A trustee may remove a fund manager immediately or by three months’ notice in writing to the fund manager, the unit holders and the Authority, as the case may be, if any of the following occurs—(a)the fund manager goes into liquidation;(b)the fund manager is placed under administration;(c)the fund manager ceases to be a licensee of the Authority;(d)for good and sufficient reasons, the trustee is of the opinion, and so states in writing, that a change of fund manager is desirable in the interest of the participants; or(e)an extraordinary resolution of removing the fund manager is passed by three quarters majority in value of the participatory interests in existence (excluding participatory interests held or deemed to be held by the fund manager or by any associate of the fund manager) and the total number of participants.(2)The fund manager shall on receipt of a notice under subregulation (1) cease to be the fund manager of the scheme and the trustee shall, by deed, appoint another person eligible under these Regulations to be the fund manager of the scheme upon and subject to that other person’s entering into a deed or deeds as the trustee may require.(3)A trustee shall ensure that upon service of the notice under subregulation (1), it shall immediately appoint a new fund manager for the scheme, subject to the approval by the unit holders and the Authority.(4)If the name of the scheme contains a reference to the name of the former fund manager, the former fund manager shall be entitled to require the new fund manager and the trustee immediately to propose a change in the name of the scheme.