The Bangladesh Securities and Exchange Commission (BSEC), which has found discrepancies in reports submitted to it on behalf of Insurance Asset Management Ltd, will examine the company’s business activities.
It is a new member of the Bangladesh capital market arena as a Next Generation Asset Management Company (AMC) to provide efficient financial solutions to investors.
The securities regulator has already appointed two agents – BSEC additional director Muhammad Amdadul Hoque and deputy director Mohammad Emdadul Haque – to lead the investigation.
BSEC officers will inspect the company’s account book, records, documents and relevant matters and submit the report to the committee within 30 working days.
Sources further said that asset management companies are one of the main intermediaries that can play a vital role in the growth of the capital market in accordance with rules and regulations.
The regulator is not satisfied with the business activities of some asset management companies.
According to Investopedia, an asset management company invests clients’ mutual funds in a variety of securities and assets.
AMCs vary in size and operations, from personal fund managers to giant investment firms.
AMC managers are remunerated through commissions, typically a percentage of a client’s assets under management. Most AMCs are held to a fiduciary standard.
Until August 17, 2021, BSEC provided 51 licenses for the creation of asset management companies.
In addition, the commission issued 21 fund manager licenses until June 7, 2021.