Regulatory Alerts2017-04-10
Amendment of Decision 14 on Collective Investment Schemes
The Capital Markets Authority has amended Article 13 of Decision No. 14 to impose strict diversification and segregation rules on collective investment scheme administrators. The revised provisions prohibit fund managers from holding or investing more than 15 percent of assets in a single issuer or source, while mandating the complete separation of scheme investments from those of the managing company. Additionally, investment-related borrowing is capped at 20 percent of the fund's estimated value, with higher limits permissible upon prior Capital Markets Authority Board approval.
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