IN EXERCISE of the powers contained in section seventy-nine of the Securities Act, Cap. 354 of the Laws of Zambia, the following Guidelines are hereby made:
These Guidelines may be cited as the “Guidelines on Trustees and Custodians in a Collective Investment Scheme established under trust”.
These Guidelines shall apply to schemes established under trust which are required to appoint a trustee as per the Securities Act.
Whilst the Act requires all other schemes to appoint a custodian, we would nonetheless recommend the appointment of a trustee for purposes of good corporate governance. Suffice to mention, the SEC is proposing an alteration to the Act in order to institute the three tier model (i.e. trustee, custodian and management company) for all collective investment schemes.