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Regulator checks banks grip on unit trusts

Regulator checks banks’ grip on unit trusts Fri, 11 Dec 2020 Kenya’s Capital Markets Authority (CMA) has proposed a comprehensive review of rules governing the operations of Collective Investment Schemes (CISs) to check dominance of commercial banks. The review of the Collective Investment Schemes Regulations, 2001, also seeks to introduce a harmonised criteria of valuing assets held by CISs in line with international best practices. According to CMA, the review will ensure transparency in the management of investments and reporting of the schemes’ performances to the regulator. The EastAfrican has learnt that the regulator and the stakeholders have agreed to expand the eligibility of trustees of unit trust funds to non-banking trustees such as accountancy and law firms.

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