Section 177 Investments and Securities Act

Section 177 of the Investments and Securities Act 2025 is about Qualification and registration of trustee or custodian. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) The Commission may by regulation prescribe the qualification and conditions for any person or institution to become or act as a manager, trustee or custodian to a collective investment scheme.

(2) A company or institution referred to in subsection (1) may not become or act as a manager, trustee or custodian unless it maintains capital and reserves as may be prescribed by the Commission.

(3) The Commission may not approve the appointment of a person as a trustee or custodian unless it is satisfied that the —
(a) person is not in relation to the manager, either a holding company or a subsidiary or related company within the meaning of those terms as defined in the Companies and Allied Matters Act;

(b) person or a related party does not have significant shareholdings with the manager, or hold board appointment with the manager; and
(c) general financial and commercial standing and independence of the person is such that it is fit for performing the functions of a trustee or custodian and that the person is by reason of the nature of its business sufficiently experienced and equipped to perform such functions.