Section 157 Investments and Securities Act

Section 157 of the Investments and Securities Act 2025 is about Authorisation of collective investment schemes. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) A person shall not establish or operate a collective investment scheme, carry on or purport to carry on the business of a collective investment scheme without the prior review and approval of the Commission.

(2) An application for authorisation under this section shall be in the form prescribed by the Commission and shall be accompanied by such documents as may be prescribed by the Commission.

(3) Upon application to the Commission in accordance with this Act by the manager of a scheme, the Commission may authorise the scheme where the —
(a) Commission is satisfied that the competence in respect of matters of the kind with which they would be concerned in relation to a scheme and probity of the manager and its directors and management as well as external auditors, trustee or custodian, as the case may be, are such as to render them suitable to act as manager, trustee or custodian in respect of the scheme;

(b) manager, trustee or custodian, of the scheme is —
(i) a body corporate which is incorporated under the Companies and Allied Matters Act,
(ii) having funds, capital and reserve as may be prescribed by the Commission, and
(iii) registered by the Commission;

(c) Commission is satisfied that the scheme is such that proprietary interest in the scheme assets is vested in the trustee and the scheme is managed by the manager for the benefit of the unitholders of the scheme;

(d) Commission is satisfied that the trust deed or custodial agreement is in compliance with the provisions of this Act and the rules and regulations of the Commission for the time being in effect; and
(e) name of the scheme is not, in the opinion of the Commission, undesirable.

(4) The Commission may refuse to authorise a scheme if it fails to comply with the provisions of this Part and shall so notify the manager, trustee or custodian under the scheme stating its reasons for refusal within 60 days of filing the application.