Section 178: Appointment and termination of appointment of trustee or custodian.

(1) A manager shall appoint either a trustee or a custodian for any scheme managed by it having regard to the structure of the scheme.
(2) A person may not become or act as a trustee or custodian unless that person is registered as such by the Commission.
(3) A trustee or custodian intending to retire from an appointment in terms of this section, shall give to the manager and the Commission not less than three months' notice of such intention, and during the said period of three months the manager concerned shall take steps to appoint another trustee or custodian competent to act as such.
(4) When the appointment of a trustee or custodian is terminated, that trustee or custodian shall within 7 days submit a report to the Commission stating:
(a) the assets and liabilities of the scheme;
(b) whether any irregularity or undesirable practice has taken place or is taking place in the conduct of the affairs of the scheme which has caused or is likely to cause financial loss to investors in a portfolio of the scheme;
(c) particulars of any such irregularity or undesirable practice; and
(d) the reason, if known, for the termination of the appointment.
(5) If a manager fails to take the steps specified in subsection (4) of this section within the said period of three months, the Commission may, after consultation with the manager, direct the manager to appoint as trustee or custodian a competent person nominated by the Commission.
(6) When it is impracticable for a trustee or custodian to perform any or all its duties, the trustee or custodian may with the approval of the Commission appoint a representative which is independent from the manager and any of its agents, to perform such duties.
(7) A trustee or custodian of a scheme who has appointed a representative under subsection (6) of this section, is not thereby relieved of any of its responsibilities or duties under the scheme.