Regulatory Alerts2012-03-22
Customers' Investments in Financial Assets via Portfolio Managers
The Supervisor of Banks issued this directive to establish mandatory procedures for banking corporations managing customer investments in financial assets through licensed portfolio managers. The regulation requires banks to implement strict internal controls, maintain segregated special accounts, and verify portfolio manager licenses while prohibiting the sharing of management income. It further mandates specific content for powers of attorney and agreements, ensuring clear definitions of authority, responsibility, and reporting obligations to protect customer interests.
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