Published: 2001-06-22
Key Benefits:
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title
2. Interpretation
PART II
Regulatory Authority
3. Designation of the Bank of Botswana as the Regulatory Authority
4. Functions of Regulatory Authority
PART III
Collective Investment Undertakings
5. Application of Act
6. Objectives and structure of collective investment undertakings
7. Conversion of collective investment undertakings prohibited
PART IV
General Provisions on the Licensing of Collective Investment Undertakings
8. Residence of collective investment undertakings
9. Prohibition on conducting business without a licence
10. Directors required to be of good repute and competent experience
11. Appointment to be approved
12. Application for a licence
13. Refusal of licence and right of appeal
14. Right of appeal of a collective investment undertaking resident in another country
PART V
Unit Trusts
15. Management company
16. Prohibition on management company engaging in other activities
17. Assets of a unit trust
18. Trustee
19. Obligations of a trustee
20. Liability of trustee
21. Prohibition on a single company acting as management company and trustee
PART VI
Investment Companies with Variable Capital
22. Licensing by Regulatory Authority
23. Share capital of investment companies with variable capital
24. Power of company to purchase own shares
25. Shareholder can request company to purchase his shares
26. Treatment of purchased shares
27. Name
28. Purchase of shares at request of shareholder and treatment of purchased shares
29. Legal reserve
30. Restriction of Companies Act
31. General
PART VII
Custodian
32. Assets of investment companies
33. Custodian
34. Obligations of a custodian
35. Exemption from requirement to have custodian
36. Liability of custodian
37. Prohibition on single company combining functions of investment company and custodian
PART VIII
Investment Policies of Collective Investment Undertakings
38. Permitted investments
39. Regulations concerning limitations on investments
40. Debt instrument, debentures and property required for an investment company's business
41. Ancillary liquid assets and investment techniques and instruments
42. Securities issued or guaranteed by countries, local authorities or public international bodies
43. Investment in other collective investment undertakings
44. Acquisition of shares carrying voting rights
45. Breaches of limits
PART IX
General Provisions Relating to Collective Investment Undertakings
46. Obligation on collective investment undertaking to purchase units
47. Issue of units
48. Purchase of units
49. Value of assets
50. Suspension of purchase of units
51. Creation and cancellation of units of unit trust
52. Issue of registered certificates or bearer securities
53. Replacement of management company, trustee and custodian
54. Remuneration and expenditure
55. Application of income
56. Borrowing
57. Granting loans or guarantees
58. Sales of securities
PART X
Prospectus, Reports and Publication of Information
59. Publication of prospectus
60. Annexation of trust deed or articles to prospectus
61. Offering of prospectus to investors
62. Publication of annual and half-yearly reports
63. Time limits
64. Contents of annual report
65. Contents of half yearly report
66. Transmission of reports to Regulatory Authority
67. Offering of reports to investors before contract concluded
68. Reports to be available to public
69. Supply of reports to participants
70. Auditing requirements in relation to annual report
71. Publication of issue and purchase prices
72. Publicity and advertising
PART XI
Special Provisions in Relation to the Regulatory Authority
73. Collaboration with competent authorities in other countries
74. Professional secrecy
75. Application of professional secrecy to information exchanged with other competent authorities
76. Restriction on the use of information received from other countries
PART XII
Inspection and Enforcement Powers of the Regulatory Authority
77. Compliance with additional requirements imposed by Regulatory Authority
78. Keeping of books and records
79. Furnishing of information to Regulatory Authority
80. Revocation of licence
81. Notice of intention to revoke
82. Regulatory Authority's powers of intervention
83. Review of Regulatory Authority's decision, etc, by the High Court
PART XIII
Miscellaneous Provisions
84. Liability of Regulatory Authority
85. Publication and register of names of licensed collective investment undertakings
86. Regulatory Authority to approve subsequent changes
PART XIV
Offences, Regulations and Transitional Provisions
87. Offences
88. Regulations
89. Repeal of Act No. 20 of 1996 and savings
Act 20, 1999.
[Date of Commencement: 22nd June, 2001]
87. Offences
(1) An investment company, management company, trustee or custodian which has contravened any provision of this Act shall be guilty of an offence.
(2) An auditor who contravenes any provision of this Act shall be guilty of an offence.
shall also be guilty of an offence.
(4) A person guilty of an offence under subsection (1), (2) or (3) shall be liable on conviction to a fine not exceeding P2 500 000 or, in the case of an individual, to imprisonment for a term not exceeding three years or to both.
(5) In the case of a continued contravention in respect of a person convicted under subsection (4) that person shall be guilty of a further offence for every day on which the contravention continues and liable on conviction to a fine not exceeding P5 000 for every day on which the offence is so continued.
(6) In this Act, a reference to a contravention includes a reference to a failure to comply.
88. Regulations
(1) The Minister may, after consultation with the Regulatory Authority, make regulations for the better carrying out of the purposes and provisions of this Act, or to give force or effect to its provisions.
(2) Without prejudice to the generality of the powers conferred in subsection (1) regulations may-
(a) provide such conditions for the granting of a licence to a collective investment undertaking generally or by reference to a particular category of collective investment undertakings;
(b) provide for the prudential requirements of the investment policies of the collective investment undertaking;
(c) prescribe matters to be contained in a prospectus and other information disseminated by collective investment undertakings;
(d) prescribe the manner of the vesting of assets or specified assets of the collective investment undertaking in a person nominated by the Regulatory Authority with such of the powers or duties of a custodian for the company as are specified by the Regulatory Authority.
89. Repeal of Act No. 20 of 1996 and savings
(1) The Collective Investment Undertakings Act (hereinafter referred to as the repealed Act) is hereby repealed.
(2) Notwithstanding the repeal effected under subsection (1) any-
(a) application, claim or other process commenced;
(b) determination, order or ruling made,
under the repealed Act, immediately before the commencement of this Act, shall, in so far as there is no inconsistency with the provisions of this Act, be deemed to have been made under this Act.