Mutual Funds (Amendment) Act, 2023 (Act 21 of 2023)

Summary

This is a short amending Act that updates the Mutual Funds Act (2021 Revision) to align it with the new Beneficial Ownership Transparency Act, 2023. It does not create a new licensing regime or new type of obligation for funds generally; instead it replaces cross-references in three sections of the principal Act so that CIMA's existing supervisory, search-and-seizure, and auditor-reporting powers over licensed mutual fund administrators who act as "corporate services providers" now refer to compliance with the Beneficial Ownership Transparency Act, 2023 rather than the previous beneficial ownership provisions in the Companies Act, Limited Liability Companies Act and Limited Liability Partnership Act.

• Section 31: Grounds on which CIMA may take action against a licensed mutual fund administrator now point to contraventions of the Beneficial Ownership Transparency Act, 2023 for administrators that are corporate services providers.
• Section 33: CIMA's powers to search and seize records under a search warrant now reference the Beneficial Ownership Transparency Act, 2023 in place of the prior beneficial ownership provisions.
• Section 35: Auditors' obligation to report matters to CIMA now extends to reporting obligations under the Beneficial Ownership Transparency Act, 2023.

The Act applies to licensed mutual fund administrators that qualify as corporate services providers under the Beneficial Ownership Transparency Act, 2023, and to their auditors, since it is their conduct and reporting obligations that are re-anchored to the new beneficial ownership statute. It was passed by the Parliament on 23 November 2023 and assented to on 7 December 2023, but does not take effect immediately on its own terms — it comes into force on a date to be fixed by Cabinet Order, which is not stated in this document.

Key obligations

• Auditors of a licensed mutual fund administrator that is a corporate services provider must report matters relevant to that administrator's compliance with the Beneficial Ownership Transparency Act, 2023, as required under amended section 35(2)(e) of the Mutual Funds Act.
• Licensed mutual fund administrators that are corporate services providers remain subject to CIMA action under section 31(1)(ab) if they contravene the Beneficial Ownership Transparency Act, 2023.
• Licensed mutual fund administrators and their records remain subject to CIMA's search and seizure powers under section 33 where an offence under the Beneficial Ownership Transparency Act, 2023 is suspected.

Applies to

licensed mutual fund administrators, corporate services providers, auditors of licensed mutual fund administrators

Deadlines

• by Order made by the Cabinet: The Act comes into force on a date to be fixed by Cabinet Order; no specific commencement date is stated in this document.

Related documents

• This document amends Mutual Funds Act (2025 Revision)
• Mutual Funds (Amendment) Act, 2023 (Commencement) Order, 2024 (SL 21 of 2024) commences this document
• Mutual Funds Act (2025 Revision) replaces this document
• Mutual Funds (Amendment) Act, 2023 (Commencement) Order, 2024 (SL 21 of 2024) is made under this document