Section 186: Power to make regulations on the constitution and management of collective investment schemes

(1) The Commission may make regulations as to the constitution and management of collective investment schemes, the powers and duties of the manager and trustee or custodian of any such scheme, and the rights and obligations of persons participating in any such scheme.
(2) Without prejudice to the generality of subsection (1) of this section, the Commission may make regulations under this section:
(a) as to the issue and redemption of the units or securities under the scheme;
(b) as to the expenses of the scheme and the means of meeting them;
(c) for the appointment, removal, powers and duties of an auditor for the scheme;
(d) for restricting or regulating the investment and borrowing powers exercisable in relation to the scheme;
(e) requiring the keeping of records with respect to the transactions and financial position of the scheme and for the inspection of those records;
(f) requiring the preparation of periodic reports with respect to the scheme and the furnishing of those reports to the participants and the Commission; and
(g) with respect to the amendment of the scheme.
(3) Regulations made under this section:
(a) may make provision as to the contents of the trust deed or custodial agreement, including provision requiring any of the matters mentioned in subsection (2) of this section to be dealt with in the trust deed or custodial agreement;
(b) shall be binding on the manager, trustee, custodian, participants independent of the contents of the trust deed or custodial agreement and, in the case of the participants, shall have effect as if contained in it ;
(c) shall not impose limits on the remuneration payable to the manager of a scheme; and
(d) may contain such incidental and transitional provisions as the Commission thinks necessary or expedient.