Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesRules for the administration of a collective investment scheme in participation bonds22. Cession, transfer or encumbering of participatory interest and withdrawal of investment |
| (1) | A participant may transfer, cede or encumber part or the whole of his or her participatory interest without the consent of any of the mortgagors concerned provided that:— |
| (a) | the manager is not obliged to note a cession, transfer or encumbrance unless informed in writing thereof and the fees and charges as may be determined by the manager have been paid by such participant or his or her successor; |
| (b) | a cession, transfer or encumbrance is only enforceable against the manager if the manager has confirmed in writing that the cession, transfer or encumbrance has been noted and that the fees and charges referred to in sub-paragraph (a) have been paid in full; and |
| (c) | the manager may refuse to note such cession, transfer or encumbrance if the participatory interest is ceded or transferred to, or encumbered in favour of, more than one person with the result that the extent of any participatory interest held by a person is less than the minimum investment determined by the manager from time to time. |
| (2) | A participant may, upon the expiry of the five year period referred to in section 58 of the Act, withdraw part or the whole of the funds invested by him or her in a scheme, if:— |
| (a) | the manager has consented to the withdrawal, which consent may not be unreasonably withheld, provided that where the manager withholds consent, the manager must provide reasons in writing for withholding the consent; |
| (b) | the participant has given the manager written notice, the period of which must be determined by the manager and disclosed in the application form, of his or her intention to withdraw such investment; and |
| (c) | the participant has paid such reasonable fees and charges as the manager may impose. |