ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
88. Modification to participatory interests issued or cancelled
Edition: 2023-12-15 · In force
88. Modification to participatory interests issued or cancelled
(1)The number of participatory interests issued or cancelled may be modified by the fund manager making a record for the scheme of the modification provided that—(a)the fund manager ensures that any appropriate consequential payment as between the fund manager and the scheme is made; and(b)the requirements of subregulation (2) are satisfied.(2)A fund manager may only make a modification under subregulation (1) with the agreement of the trustee if the trustee is reasonably satisfied—(a)that the purpose of the modification is to rectify the consequences of an error which relates to the number of participatory interests held by the fund manager, or issued or cancelled in connection with the sale or redemption of participatory interests by the fund manager; and(b)that in view of the quality of the fund manager’s controls systems, the circumstance that resulted in the error in question is an isolated one and is unlikely to recur.(3)A modification under subregulation (1) shall be of no effect unless the corrected number of shares is calculated by the end of the next business day following the relevant valuation point, or, if the trustee agrees, within the payment period applicable to the original issue or cancellation under regulation 86.