ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
41. Obligation to conduct due diligence
Edition: 2023-10-06 · In force
41. Obligation to conduct due diligence
(1)An issuer or offeror, a transaction adviser and any person who is—(a)appointed or proposed to be appointed as a REIT manager;(b)involved in or connected with the issue or offer of REIT securities or the issue of a supplemental offering memorandum or supplemental prospectus or conversion prospectus or conversion offering memorandum; or(c)named as an expert in the prospectus or offering memorandum;shall conduct an independent verification and due diligence of all statements made by or attributed to him or her which he or she has consented to its inclusion in the prospectus or offering memorandum and in respect of any covenants or warranties provided by it which are included, with his or her consent, in the prospectus or offering memorandum or in any scheme document associated or the issue or offer of the REIT securities.(2)A person shall not be held liable for a statement in or omission from a prospectus or offering memorandum or in respect of a representation, covenant or warranty in a scheme document if that person proves that, prior to making such statement, omission, representation or warranty, that person—(a)made all inquiries, if any, that were reasonable in the circumstances; and(b)believed on reasonable grounds that the statement, representation, warranty or omission was not misleading, deceptive or material.