The Bangladesh Securities and Exchange Commission (BSEC), which has found anomalies in reports submitted to it on behalf of Assurance Asset Management Ltd, will look into the business activities of the company.
It is a new member of Bangladesh's capital market arena as a new generation asset management company (AMC) to provide effective financial solutions to investors.
The securities regulator has already appointed two officers – BSEC Additional Director Muhammad Amdadul Hoque and Deputy Director Mohammad Emdadul Haque – for carrying out the investigation.
The BSEC officers will inspect the book of accounts, records, documents, and relevant issues of the company and submit the report to the commission within 30 working days.
Sources further said asset management companies are one of the prime intermediaries which can play a vital role in capital market growth following 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 pooled funds from clients into a variety of securities and assets.
AMCs vary in terms of their size and operations, from personal money managers to giant investment companies.
AMC managers are compensated via fees, usually a percentage of a client's assets under management. Most AMCs are held to a fiduciary standard.
Till 17 August 2021, BSEC has provided 51 licences for setting up asset management companies.
Besides, the commission has issued 21 fund manager licences till 7 June 2021.