Mutual Funds (Amendment) Act, 2026 (Act 5 of 2026)

Summary

This Act amends the Mutual Funds Act (2025 Revision) to create a legal framework for "tokenised mutual funds" - mutual funds that represent some or all of their equity interests using digital equity tokens. It introduces new defined terms ("digital equity token", "tokenised mutual fund", "LLC interest", "partnership interest") and updates the definitions of "debt" and "equity interest" to expressly cover LLC interests.

The Act adds a new Part 3B (sections 22I and 22J) setting out specific ongoing requirements for tokenised mutual funds and their operators. These requirements cover the following areas:

• Annual record-keeping confirmations to CIMA
• Restrictions on transferability of tokenised equity interests
• Mandatory risk disclosures in offering documents
• CIMA's power to impose technical restrictions on digital equity tokens
• Periodic reporting
• CIMA's supervisory and inspection powers over the underlying technology and token transactions

The Act also amends section 16 of the principal Act to require licensed mutual fund administrators, in respect of tokenised mutual funds, to be satisfied that records relating to issuance, creation, sale, transfer and ownership of digital-equity-token-represented equity interests are securely maintained and available to CIMA within a period it specifies, and that the fund has met every other applicable requirement for tokenised mutual funds.

Key obligations

• Operators of tokenised mutual funds must confirm annually to the Authority that all records relating to issuance, creation, sale, transfer and ownership of equity interests represented by digital equity tokens have been properly kept and maintained.
• Equity interests represented by a digital equity token may only be transferred with the approval of the operator of the tokenised mutual fund, in accordance with the offering document.
• Tokenised mutual funds must disclose in their offering document any risks specific to the digital equity tokens, including cybersecurity and transferability risks, and any other risks identified by the Authority, and must set out how those risks are mitigated.
• Tokenised mutual funds must ensure that digital equity tokens comply with any specific characteristic restrictions imposed by the Authority.
• Tokenised mutual funds must comply with any periodic reporting requirement specified by the Authority.
• Tokenised mutual funds must provide any additional information requested by the Authority to enable it to decide on an application relating to the fund.
• Licensed mutual fund administrators must be satisfied that, for tokenised mutual funds, records relating to issuance, creation, sale, transfer and ownership of digital-equity-token equity interests are securely maintained and available to the Authority (or its assignee) within the period the Authority specifies, and that the fund has complied with every other applicable requirement for tokenised mutual funds.

Applies to

mutual funds, tokenised mutual funds, licensed mutual fund administrators, operators of tokenised mutual funds

Deadlines

• annually: Operator of a tokenised mutual fund must confirm to the Authority that records relating to digital equity tokens have been properly kept and maintained.
• within the period specified by the Authority: Records relating to issuance, creation, sale, transfer and ownership of digital-equity-token equity interests must be made available to the Authority or its assignee.

Related documents

• This document amends Mutual Funds Act (2025 Revision)