ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
20. Revocation of authorization
Edition: 2023-10-06 · In force
20. Revocation of authorization
(1)The Authority may, on its own initiative or at the request of the trustee, revoke an order for the authorization of a real estate investment trust scheme under regulation 18(1).(2)The Authority shall not revoke an order under paragraph (1) unless it has given the trustee, the REIT manager and any REIT securities holder an opportunity to be heard and the Authority has reason to believe that—(a)there has been a breach of a condition or the scheme has failed to satisfy a requirement for the grant of an authorization;(b)it is undesirable in the interests of the REIT securities holders or potential REIT securities holders that the scheme should continue as an authorized scheme;(c)any proposal to restructure the scheme including changing the trustee or the REIT manager would not adequately protect the interests of the REIT securities holders; or(d)the trustee or REIT manager has—(i)furnished the Authority with false, inaccurate or misleading information; or(ii)contravened a provision of, or failed to satisfy a requirement imposed under the Act or these Regulations.(3)In revoking an authorization under paragraph (1), the Authority shall take into consideration any matter relating to the scheme, the trustee, the REIT manager or an officer or controller of the trustee or REIT manager or any director of, person employed by, or associated with the trustee or REIT manager in relation to the scheme.(4)The Authority shall, in revoking an authorization under paragraph (1)—(a)issue to the trustee and the REIT manager a written notice of its intention to revoke the authorization; and(b)give the trustee and the REIT manager an opportunity to be heard either in person or through submissions.(5)A notice issued under paragraph (4)(a) shall specify—(i)the reasons for which the Authority proposes to revoke the authorization; and(ii)the particulars of the rights conferred under paragraph (4)(b); and(iii)require the trustee to submit a copy of the notice to the REIT securities holders.