Section 176 Investments and Securities Act

Section 176 of the Investments and Securities Act 2025 is about Appointment and termination of appointment of trustee or custodian. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) A manager shall appoint either a trustee or a custodian for any scheme managed by it having regard to the structure of the scheme.

(2) A person may not become or act as a trustee or custodian unless that person is registered as such by the Commission.

(3) A trustee or custodian intending to resign from an appointment under this section, shall give to the manager and the Commission not less than three months’ notice of such intention, and during three months period, the manager concerned shall take steps to appoint another trustee or custodian competent to
act as such.

(4) The appointment of a trustee or custodian shall not be terminated except with prior approval of the Commission, and the manager shall give not less than 30 days’ notice to the Commission, the trustee or custodian of its intention to terminate such appointment stating reasons for the termination.

(5) Where the appointment of a trustee or custodian is terminated, the trustee or custodian shall within seven days submit a report to the Commission stating —
(a) the assets and liabilities of the scheme;
(b) whether any irregularity or undesirable practice has taken place or is taking place in the conduct of the affairs of the scheme which has caused or is likely to cause financial loss to investors in a portfolio of the scheme;

(c) particulars of any such irregularity or undesirable practice; and
(d) the reason, if known, for the termination of the appointment.

(6) Where a trustee or custodian fails to take the steps specified in subsection (3) within the period of three months, the Commission shall direct the manager to appoint as trustee or custodian a competent person approved by the Commission.

(7) Where it is impracticable for a trustee or custodian to discharge any or all of its duties, the trustee or custodian may with the approval of the Commission appoint a representative which is independent from the manager and any of its agents, to discharge such duties.

(8) A trustee or custodian of a scheme who has appointed a representative under subsection (7), is not relieved of any of its responsibilities or duties under the scheme.