Collective Investment Funds (Supervisor`s Handbook, May 2014) Provides an overview of the risks of mutual funds and a management framework. The Securities and Exchange Commission, SEC, has ordered that all units/securities of a collective investment undertaking be registered by the Commission. „We have a fintech department within the Commission that has been specifically set up to understand these new types of investment structures and to work with fintech companies that want to register as capital market operators and provide services to the investing public.“ There are also private investment agreements between fund managers and certain investors. Many of these funds in private fund management mandates are in our custody. SEC D-G also said the commission is also looking at the market to see how it could formulate regulations that would help investors protect their investments. The rule also stipulates that all shares/securities subject to registration by the Commission may be offered in the following manner: (a) subscription offer; (b) offer for sale; 3. Units/securities of a collective investment undertaking may be registered by means of share registration. „The investment manager was previously responsible not only for managing the investments, but also for the securities and cash as whole stocks of that investment.“ For example, we have the collective venture where you have the fund managers. According to Yuguda, every investor in the capital market should be sure that their investments are safe, as the SEC has a 100% safekeeping agreement in the CIS sector.

„The risk is that if the investment manager fails, the investor will lose, which is unacceptable in financial markets around the world. A mutual fund (CIF) is a trust managed by banks that holds mixed assets that meet certain criteria set out in 12 CFR 9.18. The bank acts as trustee for the CIF and holds legal ownership of the fund`s assets. FIAs allow banks to avoid costly purchases of small batches for their small escrow accounts. 2. The application of the new total expense ratio and the calculation of incentive fees take effect at the beginning of Q3 2020, i.e. in July 2020; „I think with the introduction of full custody in this sector, we`re probably going to see massive adoption of these types of products. SEC begins to apply hold rule to collective investment schemes The SEC said all shelf documents should be made available to the public in the fund manager/promoter`s office/website, while the fund manager/prospectus will have to pay a filing fee of N50,000 and an examination fee of N200.

000 at the time of shelving/documents and the corresponding fees for the registration of shares/securities in accordance with these rules and regulations at the time of issue of the shares/securities. Read also: CBN starts selling foreign currency, says it is able to meet legitimate needs He explained that all client assets managed under discretionary and non-discretionary mandates should be held under depositary and independent custodian agreements. The SEC said shelf registration is a repository of issuers who intend to enter the market in the near future. 1. All managers of collective investment schemes must comply with the provisions of the new rules and provide evidence of compliance by 30 September 2020; Following the publication of the new rules on collective investment undertakings in December 2019, the Commission is publishing the following clarifications to facilitate effective compliance with the new CIS rules. „We have a dichotomy between public funds, funds that are publicly traded, and you can see the unique values in the stock market and in newspapers on a daily basis. In case of renewal, the fund manager/promoter of a prospectus pays a deposit fee of N50,000 and a revision fee of N200,000 in accordance with the rule. Other provisions stipulate that a prospectus must be renewed every three years from the date of its publication; A prospectus must (i) conform to the general form and content of a prospectus as set out in these rules and regulations; (ii) indicate that the prospectus has been registered by the Commission; (iii) declare that registration of the prospectus and the supplementary prospectus should not be construed as meaning that the Commission endorses or recommends the securities or accepts responsibility for the accuracy of the statements, opinions or reports expressed therein. ».