The Non-Banking Financial Services Authority issued Prakas 035 on the Issuance of the Fund Units of “Collective Investment Scheme” (CIS) on 20 July 2023 to set out the conditions and procedure for issuing CIS Fund Units with the purpose to ensure accountability and transparency according to the applicable laws and regulations.
CIS funds must:
- obtain a prior approval from the Securities and Exchange Regulator of Cambodia (“SERC”);
- establish a unique name for the funds;
- be issued for subscription within 60 (sixty) days or any other period permitted by the SERC;
- be registered with the SERC within 07 (seven) working days or any other period permitted by the SERC upon the completion of the issuance of the funds; and
- register the subscribers of the funds.
CIS funds can be invested in securities, financial instruments, and/or investment instruments in the Kingdom of Cambodia.
CIS fund can also be invested in foreign financial markets if those markets: (a) are legally authorized, (b) serve public interests, (c) provide appropriate market information, and (d) permit capital or fund transfers.
The termination of CIS funds can be made by the decision of the fund unit holders, expiration of the specified term in the underlying CIS contract, a decision of the competent court, or other events outlined in the underlying CIS contract or determined by the SERC. In case of termination of the CIS fund, a liquidator accredited by and registered with the SERC must be appointed to liquidate the active assets and wind up the terminated CIS funds.