The Securities and Exchange Regulator of Cambodia (SERC) has recently introduced the ‘Guideline on Reporting Forms for Fund Management Companies (FMCs),’ aiming to invigorate the Collective Investment Scheme (CIS) sector by standardizing reporting procedures. This move is anticipated to bolster FMC activities within Cambodia’s financial landscape, ensuring a systematic approach to fulfilling reporting obligations.
The guideline mandates FMCs to submit structured financial reports to SERC, encompassing monthly, semi-annual, and annual updates. These reports are crucial for assessing the financial health, internal control mechanisms, regulatory compliance, risk management strategies, and the overall business status of FMCs.
Reflecting the stipulations of the ‘Prakas on Obligations of Reporting, Notifying and Requesting for Approval of Fund Manager’ issued in December 2022, these guidelines are set to enhance transparency and accountability among FMCs. By facilitating investments in approved CIS projects, FMCs are expected to contribute significantly to the financial market, offering investors financial benefits and rights in various assets.
The streamlined reporting process will enable SERC to more effectively regulate investments in CISs by FMCs, which typically involve aggregating individual funds through fund units issuance or digital platforms like crowdfunding. This regulatory oversight aims to diversify investment portfolios, mitigate individual risks, and boost market liquidity.
Sou Socheat, Director-General of SERC, emphasized that the new guidelines are a critical step towards the development of Cambodia’s CIS market and the broader securities sector. By providing clear reporting instructions, the guidelines are designed to facilitate FMC compliance with relevant laws and regulations, enhancing SERC’s supervisory capabilities.
The introduction of these reporting forms is also expected to elevate regulatory oversight, reinforcing investor protection as a core priority for SERC. With a growing number of licensed FMCs and other CIS entities, these guidelines represent a significant stride towards greater transparency and trust in Cambodia’s securities market, aligning with the regulator’s commitment to safeguarding regulated entities and investors.
Source: Khmer Times