| (1) |
A deed must provide for the requirements applicable to the administration by a manager of a collective investment scheme in securities and must, amongst others and as far as applicable, contain provisions regarding the following matters: |
| (a) |
The investment policy to be followed in respect of each portfolio; |
| (b) |
the manner in which the assets of a portfolio are to be valued for purposes of calculating the selling and repurchase prices of participatory interests; |
| (c) |
the frequency of calculation of selling and repurchase prices of participatory interests, and the point in time at which such calculations will be performed on a specific day, which point will be referred to as the valuation point; |
| (d) |
if assets other than securities listed on an exchange may be included in any portfolio, the basis on which the market value of such assets is to be determined for the purposes of determining selling and repurchase prices; |
| (e) |
the manner in which and a point in time at which the valuation point will be applied either to the creation, sale, repurchase or cancellation of participatory interests; |
| (f) |
the manner in which distributions are to be calculated and settled; |
| (g) |
the limits, terms and conditions under which scrip may be lent; |
| (h) |
the limits, terms and conditions under which a manager may for the account of a portfolio borrow money; |
| (i) |
the charges that may be levied and the method of calculation of those charges; |
| (j) |
not less than three months’ written notice must be given to every investor of an increase in any charge and of any change in the method of calculation which could result in an increase or the introduction of any additional charge; and |
| (k) |
the manner in which a deed may be amended. |
| (2) |
In respect of the repurchase of participatory interests in a portfolio of a collective investment scheme in securities, a deed must provide for the following: |
| (a) |
It is incumbent on a manager to repurchase any number of participatory interests offered to it; |
| (b) |
for the purposes of sub-item (a) and subject to sub-item (d), the manager must determine a point in time by when repurchase requests must be received for the purpose of determining which valuation point will be utilised for the pricing calculation: |
| (c) |
the time determined in terms of sub-item (b) may not be changed unless 30 days’ prior written notice has been given to investors; |
| (d) |
a manager, when it receives a request for repurchase of participatory interests under circumstances determined by the registrar under section 114(3) of the Act— |
| (ii) |
must, without delay when the trustee or custodian so requires, |
suspend the basis of the repurchase of the relevant participatory interests, if the manager, trustee or custodian, as the case may be, is of the opinion that the circumstances referred to warrant the suspension in the interest of investors; and
| (e) |
the repurchase of such participatory interests must be settled in accordance with conditions determined by the registrar under section 114(3) of the Act. |
Implementation of Geneva Conventions Act, 2012
