Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) > Part IX : Trustee or Custodian > 68. Appointment and termination of appointment of trustee or custodian

(1)	A manager must appoint either a trustee or a custodian for its collective investment scheme depending on the structure of the collective investment scheme.

(2)	A person may not become or act as a trustee or custodian unless that person is registered as such under section 69.

(3)	When the appointment of a trustee or custodian is terminated, otherwise than as contemplated in section 69(3), that trustee or custodian must as soon as possible submit a report to the registrar stating—

(a)	whether any irregularity or undesirable practice is contemplated, has taken place or is taking place in the conduct of the affairs of the collective investment scheme which has caused or is likely to cause financial loss to investors in a portfolio of the collective investment scheme;

(b)	particulars of any such irregularity or undesirable practice; and

(c)	the reason, if known, for the termination of the appointment.

(4)

A trustee or custodian intending to retire from an appointment in terms of this section, must give to the manager and to the registrar not less than six months’ notice of such intention, and during the said period of six months the manager concerned must take steps to appoint as trustee or custodian some other person competent to act as such in terms of section 69.

(5)	If a manager fails to take the steps mentioned in subsection (4) within the said period of six months, the registrar may, after consultation with the manager, direct the manager to appoint as trustee or custodian a competent person nominated by the registrar.

(6)

(a)	When it is impracticable for a trustee or custodian to perform any or all its duties under section 70, the trustee or custodian may appoint a representative which is independent from the manager and any of its agents, to perform such duties.

(b)	A trustee or custodian of a collective investment scheme who has appointed a representative under paragraph (a), is not divested of the functions referred to in that paragraph.