Section 105: Duties of CIS managers and officers

105. Duties of CIS managers and officers (1) Notwithstanding any other obligation arising under the Companies Act or under a contract with respect to the duties of a director, the CIS manager and its officers shall, in exercising their powers and duties— (a) act honestly; (b) exercise the degree of care and diligence that would be reasonably expected of a person in that position; (c) act in the best interests of the participants in the scheme and, where there is a conflict between the interests of the participants and their own interests, give priority to the participants’ interests; (d) treat the participants who hold interests of the same class equally and participants who hold interests of different classes fairly; S7 – 39 [Issue 1] Securities Act (e) not make use of information acquired through being a CIS manager or officer to— (i) gain an improper advantage for themselves or another person; or (ii) cause detriment to the participants in the scheme; (f) ensure that all payments out of the scheme property are made in accordance with the constitutive documents of the scheme, this Act, any regulations made under this Act and any FSC Rules; and (g) report to the Commission, as soon as practicable after it becomes aware of any breach of— (i) this Act, any regulations made under this Act or any FSC Rules; or (ii) the scheme’s constitutive documents that have had, or are likely to have, a materially adverse effect on the interests of participants. (2) Any person who contravenes this section shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees together with imprisonment for a term not exceeding 5 years. (3) Notwithstanding section 103, this section shall apply to a company managing its own scheme. (4) Regulations made under this Act and FSC Rules may provide for additional duties of CIS managers, their officers and employees. Sub-Part C – Disclosure