Decree No. 245 / 2013 Coll.
Ordinance on the control obligations of the depositary of the standard fund
Valid
Order
Effective from 19.08.2013
Text versions:
19.08.2013
245
DECLARATION
of 24 July 2013
on the control obligations of the depositary of the standard fund
The Czech National Bank provides pursuant to § 670 (4) of Act No. 240 / 2013 Coll., on investment companies and investment funds:
Subject matter
This decree regulates the requirements for quality criteria for the fulfilment of the obligations of the depositary of the standard fund (hereinafter referred to as "depositary ') in the control
(a) the assets of a standard fund which cannot be held in custody under Section 669 (a) of the Investment Companies and Investment Funds Act (hereinafter referred to as "the Act") or in custody under Section 669 (b) of the Act;
(b) the issue, redemption and cancellation of units or investment shares issued by the standard fund;
(c) the calculation of the actual value of the unit sheet or investment shares issued by the standard fund;
(d) valuation of the assets and debts of the standard fund;
(e) payment of remuneration from transactions in the assets of the standard fund within normal time limits;
(f) the use of the proceeds of the standard fund; and
(g) acquisition and disposal of assets of the standard fund.
Checking the assets of the standard fund
(Paragraph 670 (3) of the Law)
(1) The depositary shall, in accordance with Article 669 (a) of the Act, control the value and nature of the controlled property which cannot be held in custody or in custody under Article 669 (b) of the Act, at least by:
(a) verify on an ongoing basis the status of the register where the controlled property is kept; and
(b) compare information from the manager of the standard fund of which he is a depositary to information from his own records.
(2) Where, on the basis of the information obtained in accordance with paragraph 1, the depositary is not able to reliably establish the current status of the assets, it shall verify the status of the assets by on-the-spot check or by any other appropriate procedure at least once a year; in this way, verify the state of the property whenever, for any reason, there may be doubts as to the accuracy or completeness of the information provided by the manager of the standard fund.
Control of the issue, redemption and cancellation of units or investment shares issued by the standard fund
[K § 670 (1) (a) of the Act]
(1) The depositary shall carry out checks on the issue of units and investment shares issued by the standard fund at least by verifying, for each day on which the unit or investment shares were issued, that the number of shares is:
(a) the units issued by the holding fund shall be equal to the share of the total amount paid for them in the account of the holding fund set up or maintained by the depositary and the actual value of the holding sheet declared at the relevant date specified in the Statute; taking into account, where appropriate, the premium in accordance with the holding fund rules; or
(b) investment shares issued by a self-governing investment fund which is a standard fund (hereinafter referred to as the "self-governing standard fund") shall be equal to the share of the total amount credited for the purpose of issuing such shares to the cash account of the self-governing standard fund established or maintained by the depositary and the fixed emission rate of the investment share.
(2) When checking under paragraph 1, the depositary shall take into account the premiums and the emission allowance at least in terms of whether the total amount credited takes into account at least the lowest premium or premium and the highest premium or premium possible under the Statute of the Standard Fund or under the decision of the General Meeting of the Autonomous Standard Fund1).
(3) The depositary may, instead of the procedure referred to in point (a) of paragraph 1, carry out a check on the issue of units of the mutual fund by checking that the number of units of the unit of account corresponding to the amount credited to the account of the Fund has been issued to individual shareholders; Paragraph 8 (2) shall apply mutatis mutandis.
(4) The depositary shall check the redemption of units or investment shares by verifying that, for each day on which the share sheet or investment shares have been purchased, the individual payments made from the cash account of the standard fund correspond to the amounts equivalent to the actual value of the share sheet or investment shares issued on the date on which the administrator of the standard fund received the application of the shareholder or shareholder to buy the share sheet or investment shares, multiplied by the number of shares and investment shares that have been purchased; taking into account, where provided for in the Statute, the reduction; Paragraph 8 (2) shall apply mutatis mutandis.
(5) The depositary shall, on the basis of supporting documents from the administrator of the standard fund, check at least once a month whether the purchased units or investment shares that have ceased to be purchased have been invalidated or cancelled in the register.
Control of the calculation of the current value of the unit sheet or investment shares issued by the standard fund
[K § 670 (1) (b) and (c) of the Act]
(1) The depositary shall carry out a check on the calculation of the current value of the unit sheet or investment shares before publication of that value (2) by verifying the accuracy of the data submitted by the manager of the standard fund. A check on the calculation of the actual value of the equity or investment share shall include a check on the valuation process of the assets and debts of the standard fund.
(2) A verification of the accuracy of the data on the current value of the unit sheet or investment share shall be carried out by the depositary on the basis of data from sources independent of the manager of the standard fund that qualified investors usually use in their activities. In the absence of such resources, the depositary shall base itself on the documentation of the manager of the standard fund; in the event of obvious deficiencies in the supporting documents, the depositary shall examine the accuracy of the data and procedures used. The expert's opinion under Section 266 (1) of the Act may also be used for the verification.
Control of payment of remuneration from transactions in the assets of the standard fund within normal time limits
[K § 670 (1) (d) of the Act]
The depositary shall check the payment of consideration from transactions in the assets of the standard fund within normal time limits by determining, on the following working day after the normal time limit, whether the consideration received corresponds to the data on transactions in the assets of the standard fund.
Control of the use of the proceeds of the standard fund
[K § 670 (1) (e) of the Act]
(1) The depositary shall control the use of the proceeds of the standard fund before they are split from the assets of the standard fund.
(2) Where a standard fund pays profit shares or advance payment of a profit share, the depositary shall check that the total payment of funds to shareholders or owners of investment shares corresponds to the amount of profit or advance on the profit to be distributed and the rights associated with the shares or investment shares resulting from the status of the payment.
Control of the acquisition and disposal of assets of the standard fund
[K § 670 (1) (f) of the Act]
(1) The depositary shall carry out an inspection of the instructions of the provider of the standard fund for the management of the assets acquired in the assets of the standard fund (hereinafter referred to as the "control of the order"), to the extent and in the manner set out in paragraphs 2 to 5 and Article 8 (2) and within the deadlines set out in Section 8.
(2) Where an order for the acquisition of property into the assets of a standard fund is issued, the depositary shall, in the context of the control of the order:
(a) checking that the assets of the standard fund acquire only the types of assets permitted under the Government Regulation governing the investment of investment funds and techniques for their management (3) (hereinafter referred to as the Government Regulation) and the Statute; if the type of property value is not obvious, the check shall also be carried out on the basis of an analysis of the documentation relating to the relevant property value;
(b) checking compliance with investment limits under government regulations and statutes by comparing the established and determined limits with the latest available information on the assets of the standard fund on the date on which the order was submitted.
(3) Where an order is for the acquisition or disposal of property value, the depositary shall, in the context of the control of the order, check the professional care of the provider of the standard fund in determining the price and other conditions of trade, unless it is an anonymous transaction concluded on the market pursuant to Article 3 (1) (a) of the Government Regulation. This check shall be carried out in particular by a review of the analysis to be supported by the manager of the standard fund by the acquisition or disposal of assets at best conditions4). The subject of the review is, in proportion to the nature of the controlled transaction, at least the price, potential return on the transaction, whether the transaction was negotiated under conditions more favourable or similar than those of another counterparty (comparison of competing bids), and the assessment of the quality of the counterparty (creditworthiness and credibility of the counterparty).
(4) If the order is related to the management techniques of the standard fund, the depositary shall, as part of the control of the order, check the professional care in determining the price and other trading conditions; This check shall be carried out at least by reviewing the analysis of the terms of the transaction referred to in paragraph 3 and by verifying compliance with the rules for the use of techniques for the management of the standard fund5).
(5) Where a payment order is issued on the assets of a standard fund other than those referred to in paragraphs 2 to 4, the depositary shall verify, in the context of the control of the order, the professional care incurred, in particular, whether the reasons which lead the investment company or the self-governing standard fund to submit the order are justified. A check on the merits of the payment order, including professional care, shall be carried out to the extent that the purpose of the payment, its amount and whether it is a one-off or periodic payment.
(6) In the context of the control of the acquisition and disposal of the assets of the standard fund, the depositary shall act in such a way that, where the legal order governing the management of the property allows it to do so, the depositary shall agree with the manager of the standard fund in accordance with Article 668 (2) (e) of the Act in order that it is not possible to dispose of such rules with the assets of the standard fund without the consent of the depositary.
(1) The depositary shall check the order before making the payment or other settlement of the transaction on the basis of that order. Upon payment or other settlement of a transaction, the order may be checked only where:
(a) the amount on which the order is issued shall not exceed CZK 500,000 until the cumulative daily value of such payments has reached 0,1% of the value of the assets of the standard fund; or
(b) the assets referred to in § 3 (1) (a), § 6 and 11 of the Government Decree are the subject of trade; and
1. the method of trading in the market in accordance with Article 3 (1) (a) of the Government Regulation excludes the settlement of the trade later than the day following the submission of the order; or
2. The depositary has, on the basis of an inspection by the operator of the standard fund or other person managing the assets of the standard fund pursuant to paragraphs 23 to 26 of the Act, in agreement with these persons during the last 12 months, satisfied itself that the management and control system of that person ensures that compliance with the law, the Statute, the deposit agreement and the management contract is adequately controlled.
(2) Control of orders referred to in paragraph 1 (a) may be carried out by checking a representative sample of payments within 30 days of the end of the week in which the order was issued. The representative sample of payments shall be selected by the depositary for an up-to-date period not exceeding 30 days.
(3) Where the depositary carries out a check on a payment order submitted through an electronic banking system prior to its execution, it shall simultaneously authorise the order. This does not apply to payments entered through automated settlement systems.
The depositary shall check at least once a month that the assets have been acquired after settlement in accordance with the lists of closed transactions provided; for those purposes, the depositary shall agree with the manager of the standard fund in accordance with Article 668 (2) (e) of the Act such rules that the manager of the standard fund, which manages more investment funds, shall transmit to it each day a list of the closed transactions to their account on that day, broken down by fund.
The depositary shall carry out compliance checks
(a) the limits relating to the assets of the standard fund at least once a month within 15 days of the end of the previous month, according to the latest available data;
(b) the limits applicable to the issuer of securities held by the standard fund, on the basis of the last available information on the issuer's capital or the number of voting rights associated with the issuer's shares, but at least once a quarter, in the case of the issuer, at least every half year; and
(c) other limits in accordance with government regulations and statutes, mutatis mutandis, the nature of the limit; compliance with the quality requirements of the investment instrument or its issuer shall be checked not only when dealing with the investment instrument but also during the holding of the investment instrument, at least once a quarter.
Efficacy
This decree shall take effect on the day of its publication.
Governor:
Ing. Singer, Ph.D., v. r.
1) Article 485 (1) of Act No. 90 / 2012 Coll., on Commercial Companies and Cooperatives (Commercial Corporation Act).
2) Article 239 of Act No. 240 / 2013 Coll., on investment companies and investment funds.
3) Part Two of Government Decree No 243 / 2013 Coll., on investment funds and on techniques for their management.
4) Paragraph 22 (3) (f) of Act No. 240 / 2013 Coll.
5) Title II of Part Two of Government Decree No 243 / 2013 Coll.
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Regulation Information
| Citation | Decree No. 245 / 2013 Coll., on the Accounting Obligations of the Depositary of the Standard Fund |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 19.08.2013 |
|---|---|
| Effective from | 19.08.2013 |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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