| (a) | ensure that the basis on which the sale, issue, repurchase or cancellation, as the case may be, of participatory interests effected by or on behalf of a collective investment scheme is carried out is in accordance with this Act and the deed; |
| (b) | ensure that the selling or repurchase price of participatory interests is calculated in accordance with this Act and the deed; |
| (c) | carry out the instructions of the manager unless they are inconsistent with this Act or the deed; |
| (d) | verify that in transactions involving the assets of a collective investment scheme any consideration is remitted to it within time limits which are acceptable market practice in the context of a particular transaction; |
| (f) | enquire into and prepare a report on the administration of the collective investment scheme by the manager during each annual accounting period, in which it must be stated whether the collective investment scheme has been administered in accordance with— |
| (i) | the limitations imposed on the investment and borrowing powers of the manager by this Act; and |
| (ii) | the provisions of this Act and the deed; |
| (g) | if the manager does not comply with the limitations and provisions referred to in paragraph (f)(i) or (ii), state the reason for the non-compliance and outline the steps taken by the manager to rectify the situation; |
| (h) | send the report referred to in paragraph (f) to the registrar and to the manager in good time to enable the manager to include a copy of the report in its annual report; |
| (i) | there is a legal separation of assets held under custody and that the legal entitlement of investors to such assets is assured; |
| (ii) | appropriate internal control systems are maintained and that records clearly identify the nature and value of all assets under custody, the ownership of each asset and the place where documents of title pertaining to each asset are kept. |
| (2) | A trustee or custodian must report to the manager any irregularity or undesirable practice concerning the collective investment scheme of which it is aware and if steps to rectify the irregularity or practice in question are not taken to the satisfaction of the trustee or custodian, it must as soon as possible report such irregularity or undesirable practice to the registrar. |
[Subsection (2) amended by section 230 of Act No. 45 of 2013]
| (3) | The trustee or custodian must satisfy itself that every income statement, balance sheet or other return prepared by the manager in terms of section 90 fairly represents the assets and liabilities, as well as the income and distribution of income, of every portfolio of the collective investment scheme administered by the manager. |
| (4) | At the request of the trustee or custodian, every director or employee of the manager must submit to the trustee or custodian any book or document or information relating to the administration by the manager of its collective investment scheme which is in his or her possession or at his or her disposal, and which the trustee or custodian may consider necessary to perform its functions. |
| (5) | A person may not interfere with the performance by a trustee or custodian of its functions. |
| (6) | A trustee or custodian of a collective investment scheme which fails to perform any of its duties referred to in this section, is guilty of an offence. |
