Bangladesh Securities and Exchange Commission

Life Insurance Tower (15th, 16th, 17th, and 21st Floor), 10 Dilkusha B/A, Dhaka-1000, Bangladesh.

No.-SECI/CMARRSCDI/2009-133/130

Guidelines

Guidelines on Management Fees for Mutual Fund Asset Managers

The Bangladesh Securities and Exchange Commission, under Section 20A of the Securities and Exchange Ordinance, 1969 (XVII of 1969), read with Rule 81 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001, and in exercise of powers, hereby issues these guidelines regarding the collection of management fees during the pre-scheme formation period for mutual fund asset managers, as follows:

1.

(a) Asset managers who have already formed schemes but have not completed the audit report of the first financial year of the scheme in accordance with Rule 63 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001, may charge management fees on the collected fund size for the period from fund registration to scheme formation (Pre-scheme formation period/Pre-trade period) according to the steps and rates described in clauses (a) to (b) of sub-rule (2) of Rule 65 of the aforementioned Rules. However, in the case of Special Purpose Funds formed under clause (d) of sub-rule (1) of Rule 2 of the aforementioned Rules, management fees may be charged according to the rate mentioned in clause (e) of sub-rule (2) of Rule 65;

(b) Asset managers of funds whose prospectuses have not yet been approved may charge management fees on the collected fund size for the period from the fund registration date to scheme formation (Pre-scheme formation period/Pre-trade period) according to the steps and rates described in clauses (a) to (b) of sub-rule (2) of Rule 65 of the aforementioned Rules. However, in the case of Special Purpose Funds formed under clause (d) of sub-rule (1) of Rule 2 of the aforementioned Rules, management fees may be charged according to the rate mentioned in clause (e) of sub-rule (2) of Rule 65;

(c) Asset managers who have registered funds and, with the Commission's approval, have already made sponsor investments but have not yet formed the scheme in accordance with the Rules, may charge management fees on the income earned from invested amounts during the period from fund registration to scheme winding up (Winding up) according to the steps and rates described in clauses (a) to (b) of sub-rule (2) of Rule 65 of the aforementioned Rules. However, no further applications for sponsor investment prior to scheme formation will be considered in the future.

(d) The pre-scheme formation period/Pre-trade period refers to the period from fund registration to scheme formation.

2.

Furthermore, according to Rule 58 of the Securities and Exchange Commission (Mutual Fund) Rules, 2001, after a mutual fund is registered, the Commission may extend the deadline for submitting the draft prospectus for public offering by up to three (3) months, once, if the Commission deems it reasonable.

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By Order of the Bangladesh Securities and Exchange Commission,

Professor Dr. M. Khairul Hossain
Chairman

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Any (PBX): +880-2-9568101-2, +880-2-9561525, Fax: +880-2-9563721, E-mail: secbd@bdmail.net, Web: www.secbd.org, www.sec.gov.bd