Past version: effective from 21/10/2015 - 20/10/2015
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(1) A Trustee may not retire, or be removed, except as provided in this Rule.
(2) A Fund Manager of a Fund may, at the request of the Trustee or otherwise, and if it is of the view that the Trustee is unable to discharge its functions a Fund Manager shall, with the prior written approval of the Regulator, replace the existing Trustee.
(3) The Regulator may grant approval for the replacement of a Trustee only where it has received:
(a) a written notice from the Fund Manager of its intention to remove the Trustee and either:
(i) a certification that the removal of the Trustee will not adversely affect the interests of the Unitholders and the Fund Manager's ability to comply with its obligations under the Trust Deed, Prospectus, these Rules and the FSMR; or
(ii) a Special Resolution of Unitholders approving the Fund Manager's proposal to remove the Trustee and its replacement with another Trustee; and
(b) the written consent of the person who agrees to be the replacement Trustee, and that person meets the requirements for a Trustee in Section 114(2) of the FSMR to be able to act as the replacement Trustee.
(4) The Unitholders of the Investment Trust may replace the Trustee by Special Resolution.
(5) The Regulator or the Fund Manager may apply to the Court for an order for the removal of the Trustee and any other appropriate orders including, but not limited to, the appointment of a replacement Trustee where the Trustee is, or is believed to be, in breach of its obligations under the Trust Deed, its Financial Services Permission, these Rules, the FSMR or any other enactment or rule of law in the Abu Dhabi Global Market.
(6) The Regulator may make Rules prescribing other circumstances in which a Trustee may be replaced.
(7) Subject to the terms of the Trust Deed, these Rules, the FSMR and the rules made for the purposes of the FSMR, a Trustee appointed as a replacement Trustee shall have the same powers, discretions and duties as the previous Trustee.
(8) Where a Trustee is removed or retires pursuant to the above, it shall, without any delay, transfer the assets of the Investment Trust held by it as directed by the Fund Manager or, as required by any Court order. Until the assets of the Investment Trust are so transferred, the Trustee remains accountable to the Unitholders for the safety of those assets.