Regulatory Alerts2013-05-22
Unit Trusts and Mutual Funds Regulations, 2001 (L.I. 1695)
Issued by the Minister for Finance on the Securities and Exchange Commission’s recommendation, these regulations establish the licensing framework and operational standards for unit trusts and mutual funds. The rules mandate minimum capital thresholds of ¢1 billion for managers and ¢5 billion for trustees or custodians, alongside guaranteed minimum initial subscriptions and standardized scheme particulars that shield investors from misleading disclosures. They further govern pricing, valuation, and redemption procedures while empowering the Commission to suspend dealings or mandate managerial removal when capital falls below statutory limits or adverse market conditions arise.
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