a. An investment fund is a collective investment scheme aimed at providing investors therein with an opportunity to participate collectively in the profits of the scheme which is managed by a portfolio manager for specified fees.
b. The Authority shall assume the power to regulate the activities of investment funds managed by banks within two years from the enactment of this Law.
c. The Authority shall regulate portfolio managers and investment advisers and supervise them. This shall include setting the regulations, rules and instructions that pertain to the following:
- The organizational structure;
- Accounting systems and operational rules;
- Investment fund governance and decision making;
- Securities custody procedures and efficient provision of services to clients;
- Services fees and commissions and management remuneration;
- Entering into transactions with related parties;
- Performance reports and the calculation of asset values and unit prices and advertisement;
- Conditions and requirements for the approval of establishing new funds;
- Financial and periodic reporting requirements of funds;
- Liquidity requirements and risk limits;
- Professional qualifications, personal suitability, financial responsibility and licensing requirements.
