9.1 Ongoing Record Keeping

The maintenance of records for a CIS is important both in itself and as a confirmation that other regulatory rules and procedures have been complied with. Legible, comprehensible and comprehensive records should be maintained of all transactions involving CIS assets, as well as all transactions in CIS units. Records should be kept for a specified time in an accessible place and should be available to the regulatory body upon request.

The types of records which may be required include accounting and book-keeping records, trading records, bills and bank statements, correspondence between the operator and its clients, client agreements, copies of advertisements, personal trading records and evidence to support performance claims. The regulatory body may also wish to take account of an operator's books and records which may be inspected by a public accountant.

9.2 Winding-Up

It is important that the interests of CIS investors are duly protected not only while the CIS is a going concern, but also when its continuity is affected by circumstances which require it to be wound up. Such circumstances may include a failure by a CIS operator to discharge its obligations properly, an event specified in the CIS rules, any relevant legislation or the passage of time.

Books and records of the CIS should ensure that investors' interests can be accurately determined for the purposes of a winding-up.