BSEC opens probe into non-compliance in Investasia Capital's two mutual funds
The Bangladesh Securities and Exchange Commission (BSEC) formed a committee today to investigate potential non-compliance and financial affairs of two mutual funds managed by Investasia Capital and Asset Management Limited and its trustee Sentinel Trustee and Custodial Services Limited.
The committee's objectives include investigating possible violations of the Mutual Funds Rules 2001 and the trust deeds of the mutual funds, according to a BSEC order on the formation of the inquiry panel.
The three-member panel led by BSEC Additional Director Mohammad Amdadul Hoque, with Deputy Director Md Rafiqunnabi and Assistant Director Md Sakil Ahmed as members, has been formed in the interest of the capital market and general investors, said the regulator.
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The committee will also review any illegal activities involving key management personnel, including the Managing Director of Investasia Capital and Asset Management Limited, which got incorporated in 2009, during the tenure of these funds.
Other tasks of the committee include identifying breaches of the Mutual Fund Rules 2001 by the asset manager, trustee, custodian, or other involved parties, examining the roles of independent external auditors, the trustee, and the custodian, and collecting necessary documents to support the inquiry.
The committee is expected to complete its investigation and submit a report to the commission within 60 days, addressing any non-compliance or irregularities.
Sentinel Trustee and Custodial Services is a fast-growing trusteeship company in Bangladesh, providing a wide range of trusteeship services.
The BSEC has issued 67 licenses for asset management companies, with 29 firms managing mutual funds. Market insiders have reported negative propaganda in the mutual fund industry, leading to reduced interest from institutions in entering the sector. This has resulted in challenges for newcomers in creating funds and establishing confidence.
Despite the regulator's efforts to minimise complexity and improve the sector, challenges persist. There is also a lack of a sufficient skilled workforce and leaders to manage the numerous asset management companies. Additionally, industry insiders note that many sponsors obtained licences without serious planning and vision.
