This law shall govern undertakings for collective investment in transferable securities in Cameroon, in accordance with the provisions of Section 4(2) of Law No. 99/15 of 22 December 1999 to establish and organize a financial market in Cameroon.
For the purposes of the law, the following definitions shall apply:
- Assets of an undertaking for collective investment in transferable securities: all the liquid assets and transferable securities posted on the assets side of the balance sheet.
- Depositary: corporate body responsible for safekeeping of assets and checking the regularity of decisions taken on behalf of an undertaking for collective investment in transferable securities.
- Mutual fund shares: transferable securities representing co-ownership rights whose ownership stems from their inclusion on a list kept by the fund management company; each share corresponds to the same fraction of the fund's assets.
- Investment service provider: a market intermediary authorized to negotiate and execute transferable securities purchase and sale orders on behalf of clients.
- Management company: corporate body whose exclusive purpose is to ensure the administrative, financial and accounting management of an undertaking for collective investment in transferable securities on behalf of investors, unit holders and/or shareholders.
- Open-ended Investment Company: public limited company whose sole purpose is to manage a portfolio of transferable securities and deposits whose shares are issued and redeemed at any time at the request of any subscriber or shareholder.
- Net asset value of a unit or share of an undertaking for collective investment in transferable securities: value of assets estimated on the basis of the latest price or value thereof divided by the number of shares or units in circulation.
- Transferable securities: securities issued by public or private corporate bodies, transferable through book entry, conferring similar rights by category and giving direct or indirect access to a percentage of the capital of the issuing corporate body or to a general claim on its property, excluding shares and interests.
Undertakings for collective investment in transferable securities, hereinafter abbreviated and referred to as "UCITS", shall comprise open-ended investment companies (SICAVS) and mutual investment funds (MIFs).
UCITS shall be classified into categories, notably according to investment strategy, composition and asset types.
The various categories of UCITS shall be fixed by order of the minister in charge of finance, upon the recommendation of the Financial Markets Commission.