ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
68. Duties of a custodian
Edition: 2023-12-15 · In force
68. Duties of a custodian
(1)A custodian shall render custodial services in accordance with a written agreement between the custodian and the fund manager or trustee as the case may be.(2)The agreement shall include the following—(a)to maintain the custody of all the assets of the scheme;(b)to receive and keep in safe custody title documents and the assets of the scheme;(c)to open an account in the name of the collective investment scheme for the exclusive benefit of such scheme;(d)to transfer, exchange or deliver in the required form and manner securities held by it upon receipt of proper instructions from the fund manager or trustee as the case may be;(e)to require from the fund manager or trustee, such information as it deems necessary for the performance of its functions;(f)to promptly deliver to the trustee or fund manager or to such other persons as the fund manager or trustee may authorise, copies of all information the custodian may receive;(g)to exercise subscription, purchase or other similar rights represented by the securities subject to receipt of proper instructions from the fund manager;(h)to exercise the same standard of care that it exercises over its own assets in holding, maintaining, servicing and disposing of the collective investment scheme portfolio and in fulfilling obligations in the agreement;(i)where title to investments are recorded electronically, to ensure that entitlements are separately identified from those of the fund manager or the trustee, as the case may be, of the collective investment scheme in the records of the person maintaining records of entitlement;(j)to attend general meetings of the participants and be heard at any general meeting on matters which concern it as custodian;(k)conflicts of interests and how such conflict shall be managed;(l)extent of the liability of the custodian; and(m)fees payable to the custodian for the custodial services which shall be disclosed to the participants in the annual report each year.