Mutual Funds Reporting Requirements
The administrator shall at all times act in good faith and in the interests of the investors in each of the mutual funds which it administers. It is responsible for ensuring the promoter can fulfil their obligations, communicating the financial affairs and maintaining accounting records in respect of the fund, managing the sale and redemption of equity interests in the fund, making distributions and meeting the filing requirements:
Mutual fund administrators must submit:
- Return by Mutual Funds Administrator of Mutual Funds (Form No. 7), which lists all the mutual funds and exempt mutual funds for which it acts, indicating any additions or deletions which have occurred during the preceding year;
- a certificate signed by a director or partner of the administrator confirming that the administrator had conducted its business properly and in compliance with the Mutual Funds Ordinance and subsidiary legislation and any conditions attached to its licence; an annual certificate of solvency confirming that the assets of the fund exceed its liabilities by 15%;
- audited account on each of the funds under administration for investors and the Commission within four months of year end;
- provide evidence that the administrator has a valid, acceptable insurance policy to cover any claims arising from negligence or breach of duty; and
- file any corporate changes that may affect the conditions of approval as well file an amended prospectus to the Commission where changes made will materially affect any information in the prospectus filed with the Commission.