Library / Midstream Petroleum (Host Communities Development Trust) Regulations 2024
Midstream Petroleum (Host Communities Development Trust) Regulations 2024

Page 20 of 29
B  908
(c)  it is registered as a Fund Manager with the Securities and Exchange
Commission; and
(d)  it is registered with the Authority.
33.  The Fund Manager shall in administering the reserve fund —
(a)  act with honesty and fairness;
(b)  act with skill, care and diligence;
(c)  act in the interest of the host communities;
(d)  act with independence and objectivity;
(e)  communicate with the Board of Trustees in a timely and accurate
manner;
(f )  not participate in any business relationship or accept any gift that
may affect its independence or objectivity;
(g)  exercise due diligence in ensuring the maintenance of the reserve
fund and shall ensure that there is no avoidable deterioration in value;
(h)  institute mechanisms to ensure that proper care is taken for the
collection, monitoring and supervision of the reserve fund;
(i) avoid conflict between its interests and the interest of the host
communities;
(j) disclose the interests of its directors and management to the Board
of Trustees; and
(k)  keep proper and accurate records, including details of its decision-
making process in dealing with any investment with justifications for such
decisions and forward same to the Board of Trustees.
34.—(1) The Fund Manager shall cease to act as a Fund Manager
where —
(a)  its registration with the Securities and Exchange Commission
is withdrawn or revoked in accordance with the Investments and
Securities Act;
(b)  it becomes bankrupt or makes a compromise with creditors or a
moratorium is granted on its debt or such other comparable measures are
taken against the Fund Manager;
(c)  it is found guilty of a crime involving fraud or dishonesty or any other
felony or it is sanctioned for misconduct by Securities and Exchange
Commission or any professional body or association; or
(d)  it resigns its appointment as Fund Manager by a notice to the Board
of Trustees.
(2)  The Board of Trustees shall notify the Authority through the licensee
of the removal or resignation of a Fund Manager within 14 days of the removal
or resignation.
Duties of
the Fund
Manager
Cessation of
office of the
Fund
Manager