Regulatory Alerts2016-01-01
Guidelines on Trustees and Custodians in a Collective Investment Scheme Established Under Trust
The Securities and Exchange Commission of Zambia issued Guideline No. 1 of 2016 to clarify the roles, eligibility, and operational requirements for trustees and custodians in Collective Investment Schemes established under trust. The regulation mandates that every such scheme appoint a Commission-approved trustee to hold all scheme property in trust while simultaneously engaging an approved custodian for portfolio custody, thereby establishing a clear three-tier governance model. It further specifies detailed duties, appointment procedures, resignation protocols, and removal conditions for both entities to resolve prior regulatory ambiguities and ensure proper asset registration and oversight.
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