Regulatory Alerts2021-01-01
Financial Regulatory Authority Board of Directors Resolution No. (106) for the Year 2021 Regarding Permitting Licensed Investment Fund Management Companies to Manage Other Companies' Investments
The Financial Regulatory Authority issued Resolution No. 106 of 2021 to authorize licensed investment fund management companies to manage investments for other corporate entities, provided their governing contracts or articles of association permit it. The resolution mandates that investment managers execute formal agreements detailing party rights, targeted investment scopes, and fee structures, while strictly maintaining independent accounts and avoiding conflicts of interest. Furthermore, it prohibits cross-investing corporate funds into the manager's own investment funds (except money market and debt instrument funds) or investing those funds back into the managed corporate entities, and requires periodic reporting to the Authority for oversight.