Regulation 16 - Disqualification from being appointed as trustees

Trustee eligibility requires integrity and absence of disqualifying offences; independence and sponsor separation restrict appointments.

Regulation 16 prescribes trustee eligibility and disqualification: trustees must be persons of ability, integrity and standing, not guilty of moral turpitude or convicted of economic or securities offences, and must furnish prescribed particulars. Asset management companies and their officials are ineligible to serve as trustees. Trustees are restricted from holding trustee appointments across multiple mutual funds unless independence conditions are met. A specified proportion of trustees must be independent and unaffiliated with sponsors. Where a company is trustee, its directors may serve on other trusts if objects do not conflict, and the trustee company's chairperson must be an independent director subject to transitional compliance.