Revised collective investment schemes rules gazetted
INVESTORS should note that the revised set of Collective Investment Schemes rules was published on the 8th of September 2017. This move was taken with the aim of aligning the rules with the changing operating environment. The reviewed set of rules includes:
◆ Statutory Instrument 108 of 2017 — Collective Investment Schemes (Internal Schemes) (Amendment), Rules, 2017 (No. 4). These rules amended certain sections of the principal Collective Investment Schemes (Internal Schemes) Regulations, 1998, published in Statutory Instrument 172 of 1998.
◆ Statutory Instrument 107 of 2017 — Collective Investment Schemes (Professional Schemes) (Amendment), Rules, 2017 (No. 1). These rules amended certain sections of the principal Collective Investment Schemes (Professional Schemes) Regulations, 1998, published in Statutory Instrument 176 of 1998. This new set of rules is accessible from the SECZ website. Investors are therefore advised to familiarise themselves with the amendments that have taken place for informed decisions making purposes. Meanwhile, in terms of section 6 (1) of the Collective Investment Schemes Act [Chapter 24:19], an Investment Scheme may be registered as:
◆ Internal Scheme
◆ External Scheme
◆ Professional Scheme
An Internal Scheme is any Unit Trust Scheme which is constituted by a Trust Deed executed in Zimbabwe and which is operated wholly or mainly in Zimbabwe. The Trust Deed of the Scheme is executed by the Scheme Manager and the Trustee.
An External Scheme refers to any Unit Trust Scheme which is established and managed outside Zimbabwe. However, the manager of every registered external scheme shall maintain an office in Zimbabwe.
A Professional Scheme is any Unit Trust Scheme which has between five and thirty registered public Accountants, public Auditors, members of the ZSE or any other professionals who possess such other prescribed qualification or experience. Each Professional Scheme participant invests not less than the prescribed amount.
It is advisable for investors to participate in registered Collective Investment Schemes for recourse to regulatory action.