The securities regulator has decided to remove the Investment Corporation of Bangladesh (ICB) and its investment banking subsidiary from the trusteeship of two open-end mutual funds being managed by ICB's asset management arm.
The move is aimed at ensuring more transparency in the mutual fund industry of the country, said the Bangladesh Securities and Exchange Commission (BSEC) in a statement following the 776th commission meeting on Monday.
The meeting, headed by BSEC Chairman Professor Shibli Rubayat-Ul-Islam, decided to appoint any other firm which has a regulatory licence to operate as a trustee.
Trustee looks after the interest of mutual fund unitholders, while asset manager operates the investment activities of the fund under trustee's supervision, and of course within the rules and regulations concerned.
ICB itself is the trustee of ICB AMCL Unit Fund while ICB Capital Management is the trustee of Bangladesh Fund and both the funds are managed by ICB Asset Management Ltd.
Separation of trusteeship would help ensure accountability and transparency in both the funds, believes the BSEC.