Section 160: Authorisation of collective investment scheme.

(1) No person shall establish or operate a collective investment scheme or carry on or purport to carry on the business of a collective investment scheme unless such scheme is authorised by and registered with the Commission.
(2) An application for authorization under this section shall be in the form prescribed by the Commission and shall be accompanied by such documents as may be prescribed, from time to time, by the Commission.
(3) Upon application to the Commission in accordance with this Act by the manager of a scheme, the Commission may authorise and register the scheme where:
(a) the Commission is satisfied that the competence in respect of matters of the kind with which they would be concerned in relation to a scheme and probity of the manager and its directors and management as well as external auditors, trustee or custodian, as the case may be, are such as to render them suitable to act as manager, trustee or custodian in respect of the scheme;
(b) the manager, trustee or custodian, of the scheme is :
(i) a body corporate which is incorporated under the Companies and Allied Matters Act,
(ii) having capital and reserve as may be prescribed by the Commission from time to time, and
(iii) registered by the Commission;
(c) the Commission is satisfied that the scheme is such that the effective control of its affairs is vested in the manager and exercised independently of the trustee or custodian of the scheme;
(d) the Commission is satisfied that the trust deed or custodial agreement is in compliance with the provisions of this Act and the rules and regulations of the Commission for the time being in force; and
(e) the name of the scheme is not, in the opinion of the Commission, undesirable.
(4) The Commission may refuse to authorise a scheme if in the opinion of the Commission it fails to comply with the provisions of this part of this Act and shall so notify the manager, trustee or custodian under the scheme stating its reasons for refusal within sixty days of filing the application.