Collective Investment Schemes Act
- Published in Government Gazette
- Commenced on 1 August 1998
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short title and date of commencementThis Act may be cited as the Collective Investment Schemes Act [Chapter 24:19].[Short title amended by s.i. 262 of 2006]
2. InterpretationIn this Act—"advertisement", in relation to a collective investment scheme, means any form of advertising in any media whatever but, except in relation to a professional scheme, does not include editorial or journalistic advice or comment on matters of public interest where the intention of the comment is neither to promote the collective investment scheme nor to procure persons to become participants in it;"Chief Executive Officer" means the Chief Executive Officer of the Commission;[definition inserted by Act 2 of 2013]"collective investment scheme" has the meaning given to it in section three;"Commission" means the Securities and Exchange Commission established by section 3 of the Securities and Exchange Act [Chapter 24:25];[definition inserted by Act 2 of 2013]"external scheme" means a collective investment scheme described in section nineteen;"fixed date", in relation to any provision of this Act, means the date fixed in terms of subsection (2) of section one as the date of commencement of that provision;"group of companies" means companies or other bodies corporate that are related to each other as holding company and subsidiary, or as subsidiaries of the same holding company, for the purposes of section 143 of the Companies Act [Chapter 24:03];"holder", in relation to a licence, means the person to whom the licence has been issued;"inspector" means a person appointed as an inspector in terms of subsection (1) of section twenty-eight;"internal scheme" means a collective investment scheme described in section ten;"licence" means a licence issued in terms of section thirteen to the manager or trustee of an internal scheme, and "licensed" shall be construed accordingly;"manager", in relation to—(a)any collective investment scheme, means the person who is responsible to participants for the management and control of the scheme and for the issue and redemption of units in the scheme;(b)an external scheme, includes the promoter of the scheme;"Minister" means the Minister of Finance and Economic Development or any other Minister to whom the President may, from time to time, assign the administration of this Act;[definition inserted by section 4 of Act 22 of 2001]"participant" means a person who invests in or otherwise takes part in a collective investment scheme;"professional scheme" mean a collective investment scheme described in section twenty-three;"promoter", in relation to a collective investment scheme, means a person who promotes the establishment of the scheme and additionally, or alternatively, promotes the sale of units, shares or other interests in the scheme;"registered" means registered in terms of this Act;"registered office", in relation to the holder of a licence, means the holder’s registered office for the purpose of section 112 of the Companies Act [Chapter 24:03];"Registrar" [definition repealed by Act 2 of 2013]"trust deed", in relation to a unit trust scheme, means the written agreement between the manager and trustee which constitutes the scheme and under whose terms the property of the scheme is held;"trustee", in relation to a unit trust scheme, means the person who holds the property of the scheme in trust for the participants;"unit", in relation to a unit trust scheme, means the interest or share, by whatever name called, which a participant has in the scheme;"unit trust scheme" means a collective investment scheme under which the property of the scheme is held in trust for the participants.
3. Meaning of "collective investment scheme"
Part II – Administration
4. Functions of chief executive officer and staff of commission
Part III – Registration of collective investment schemes
5. Prohibition against promotion or operation of unregistered collective investment schemes
6. Categories in which collective investment schemes may be registered
7. Registration of collective investment schemes
8. Cancellation of registration
9. Registration and cancellation thereof to be notified in GazetteWhenever the Chief Executive Officer registers a collective investment scheme or cancels the registration of a collective investment scheme in terms of this Part, he shall cause notice thereof to be published in the Gazette.
Part IV – Internal schemes
10. Application of Part IVThis Part shall apply to internal schemes, that is to say, to any unit trust scheme which is constituted by a trust deed executed in Zimbabwe and which is operated wholly or mainly in Zimbabwe.
11. Trust deed
12. Manager and trustee
13. Licensing of manager and trustee
14. Cancellation of licence of manager or trustee
15. Suspension of licence of manager or trustee
16. Issue, cancellation or suspension of licence to be notified in GazetteWhenever the Chief Executive Officer issues, cancels or suspends a licence in terms of this Part, he shall cause notice thereof to be published in the Gazette.[section amended by Act 2 of 2013]
17. Replacement of manager or trustee
18. Auditors of internal schemes
Part V – External schemes
19. Application of Part VThis Part shall apply to external schemes, that is to say, to any unit trust scheme which is established and managed outside Zimbabwe.
20. Additional requirements for registration of external schemesWithout derogation from subsection (2) of section seven, the Chief Executive Officer shall not register a scheme as an external scheme in terms of that section unless he is satisfied that—
21. Manager of external scheme to maintain local officeThe manager of every registered external scheme shall maintain an office in Zimbabwe where—
22. Suspension of registration of external scheme
Part VI – Professional schemes
23. Application of Part VIThis part shall apply to professional schemes, that is to say, to any unit trust scheme—
24. Additional requirements for registration of professional schemesWithout derogation from subsection (2) of section seven the Chief Executive Officer shall not register a scheme as a professional scheme in terms of that section unless he is satisfied that—
25. Auditors of professional schemes
26. Suspension of registration of professional scheme
27. Application of sections 11 and 12 to professional schemesSections eleven and twelve shall apply, mutatis mutandis, in relation to professional schemes as they do in relation to internal schemes:Provided that it shall not be necessary for the manager or trustee of a professional scheme to be licensed.
Part VII – Inspections and investigations
28. InspectorsInspectors "Persons who have been appointed to be inspectors in terms of section 101 of the Securities and Exchange Act [Chapter 24:25] shall be inspectors for the purposes of this Act.[section substituted by Act 2 of 2013]
29. Chief executive officer may demand information
30. Investigation into affairs of licensed person or registered scheme
31. Procedure on completion of investigation
32. Expenses of investigation
Part VIII – General
33. Restrictions on promotion of registered schemes
34. Unsolicited calls
35. Duty of disclosure towards participants in registered schemes
36. Right of action by participants against manager of registered schemesNotwithstanding anything to the contrary in any trust deed or contract whereby a person becomes a participant in a registered scheme, every participant in such a scheme shall be entitled to enforce his rights against the manager of the scheme in any competent court registered in Zimbabwe.
37. Secrecy to be observed by Chief Executive Officer and other officers
38. Annual reports of Chief Executive Officer
41. False statements etc.
43. Transitional provisions: existing schemes
History of this document
31 December 2016 this version
01 August 1998