On 20 July 2023, the Non-Banking Financial Services Authority (“NBFSA”) issued Prakas 035 on the Issuance of the Fund Units of Collective Investment Scheme (“CIS”) to set out the conditions and procedure for issuing CIS Fund Units with the purpose to ensure accountability and transparency in accordance with the applicable laws and regulations.
Registration
To issue fund units of CIS, a fund management company (“FMC”) shall establish the fund, apply for the issuance and offering of fund units, and register such fund.
CIS funds must:
Operations
CIS funds can be invested in securities, financial instruments, and/or investment instruments in the Kingdom of Cambodia including:
CIS fund can also be invested in foreign financial markets if those markets: (a) are legally authorized, (b) serve public interests, (c) provide appropriate market information, and (d) permit capital or fund transfers.
Reporting obligations
An FMC, with the assistance of a distribution company, shall notify and report to fund unit holders and SERC in event of:
Termination
The termination of CIS funds can be made by the decision of the fund unit holders, expiration of the specified term in the underlying CIS contract, a decision of the competent court, or other events outlined in the underlying CIS contract or determined by the SERC. In case of termination of the CIS fund, a liquidator accredited by and registered with the SERC must be appointed to liquidate the active assets and wind up the terminated CIS funds.
Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (ACAR Decision N0. 014), member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (license number C-00085) and tax agent from General Department of Taxation (license number TA202204002).
This Publication is intended for general guidance only and should not form the basic of specific decisions.
Should you need any further information or support, please contact us at: accounting@advancegroupkh.com (accounting), audit@advancegroupkh.com (audit), tax@advancegroupkh.com (tax) and number and telegram 085 36 8888 and 070 399 888.
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