Every fund manager that manages discretionary funds has to appoint a custodian for the assets of the fund.
- A fund manager must publish their financial statements in at least two daily newspapers that have national circulation
- They must display audited balance sheet, profit and loss statement, auditor’s report and a list of its directors
- Fund managers must also have professional indemnity insurance with the amount of cover based on funds under management.
- The financial requirements include shareholder’s funds of Kshs 10 million and the higher of Kshs 5 million or 8% of liabilities in liquid capital.
- To act in the interests of the fund and its investors and avoid conflicts of interest.
- To appoint an independent auditor who holds a valid practicing certificate issued by the Institute of Certified Public Accountants of Kenya (ICPAK).