Section 4
( 1)
Subject to the following provisions of this section, for the purposes of this Order each of the following is a mutual fund -
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(a)
an arrangement under which property belongs benefi.cially to, and is managed, either as a whole or in two or more separate parts, by or on behalf of, a body corporate whether incorporated or otherwise established in Brunei Darussalam or elsewhere) having as its purpose or effect -
(i)
the investment of its funds with the aim of spreading investment risk; and
(ii)
to give the persons taking part in the arrangement ("the participants") the benefi.t of the results of the management of those funds by or on behalf of that body and to participate in or receive profi.ts or other gains or income arising from the acquisition, holding, management or disposal of the property or any part thereof or of any sums paid out of such profi.ts or income;
(b)
a unit trust, a limited or other partnership or other arrangement with respect to property, whose purpose or effect is -
(i)
to enable persons taking part in the arrangement ("the participants"), whether by becoming owners of the property or any part thereof or otherwise, to participate in or receive profi.ts or other gains or income arising from the acquisition, holding, management or disposal of the property or any part thereof or of any sums paid out of such profi.ts or income; and
(ii)
to spread risk by means of pooling in the manner described in subsection (3)(a);
BRUNEI DARUSSALAM GOVERNMENT GAZETTE and in this subsection "property" means property of any description, including money or any fund interest;
(2)
In the case of such an arrangement as is mentioned in subsection (l)(a}, the rights of the participants must be represented by shares in or securities of that body at least some of which shares or securities, either on demand or within a specified period after demand -
(a}
are redeemable or repurchasable at the option of the participant concerned; or
(b)
the body ensures can be sold by the participants at a price, whether incorporating a premium or profit or a discount or loss, related to the value of the property to which they relate.
(3)
A unit trust, partnership or other arrangement such as is mentioned in subsection (l)(b}-
(a}
must be such that the participants do not have day to day control over the management of the property, whether or not they have rights to attend and vote at meetings of the body or to be consulted or to give directions;
(b)
must have both of the characteristics mentioned in subsection (4);
and
(c)
must be such that -
(i)
at least some of the fund interests issued or otherwise offered under the arrangement are, under the arrangement, redeemable or repurchasable at the option of the participant concer9ed on demand or within a specified period after demand; or
(ii)
must be such that the fund interests issued or otherwise offered under the arrangement are, under that arrangement, transferable by the participants at a price related to the value of the property to. which they relate.
(4)
The characteristics referred to in subsection (3}(b} are-
(a} that the contributions of the participants and the profits or income out of which payments are to be made to them are pooled either in a single pool or in two or more pools however segregated; and fb}
that the property in question is managed as a whole by or on behalf of the manager of the fund.
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Bearer shares.