ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
54. Authorization of a scheme as a self-managed scheme
Edition: 2023-10-06 · In force
54. Authorization of a scheme as a self-managed scheme
(1)The scheme documents shall provide for the appointment, resignation and removal of the REIT manager.(2)The Authority may, on the application of the trustee, authorize a scheme to be self-managed by a company which is wholly owned and controlled by the trustee and is an eligible asset of the real estate investment trust.(3)In considering whether to authorize a scheme to be self-managed the Authority shall take into consideration—(a)the type, objectives, history and performance of the real estate investment trust and the number and type of REIT securities holders;(b)the proposed terms of appointment;(c)the resources including, human, systems and financial resources that will be available to the company;(d)the experience of the directors and senior management of the company;(e)the experience and history of performance of the trustee and the resources available to it;(f)the potential conflicts of interest and the powers of the trustee and of REIT securities holders to—(i)remove the company as REIT manager;(ii)appoint the directors of the company;(iii)limit the conflicts of interest including the remuneration of directors and employees of the company;(iv)limit the risks to the fund and to the unit holders including the availability of insurance in respect of negligent acts by the company as REIT manager or its directors; and(v)other factors that the Authority considers relevant in the interests of REIT securities holders; and(g)the amendments proposed to the trust deed and the scheme documents !o recognise the scheme as a self-managed scheme.(4)Where the Authority authorizes self-management of a scheme through a wholly owned company the provisions of these Regulations shall, except where expressly provided for, apply to the REIT manager notwithstanding that it is a company that is wholly owned.(5)An approval by the Authority for a scheme to be self-managed shall be conditional upon the trustee and the REIT securities holders approving the appointment and terms of the appointment of the company.(6)A REIT manager shall not manage more than one real estate investment trust scheme unless it has applied for and obtained the approval of the Authority.