Prudential control on investment companies is performed based on the term reports and the submitted information. In order to apply the accountability mechanism, there are some requirements and control measures identified by supervisory authority.
Requirements on the reports by investment companies to supervisory authority are regulated by the “Law on Securities Market” and “Rules on preparation and submission of reports by investment companies”.
Investment companies submit the term reports (capital requirement reports, financial reports, customer account reports, on provided services (operations), and reports on operations on their activity to supervisory authority monthly, semiannually and annually.
In addition, supervisory authority makes it important to assess the reports by investment companies by independent audit company. Independent audit company must comply with the requirements of “Rules on requirements on external auditors on licensed entities in the securities market.”