Sebi group moots compliance officer for AMCs

The working group on trustees set up by Sebi has made a number of suggestions to further streamline the mutual fund sector.

Every asset management company (AMC) will have to appoint a compliance officer with the prior approval of the trustees.

The compliance officer will have to ensure compliance by those, who have to submit reports, certificates, and declarations. He shall be the first level verifying officer and shall assist the trustees in discharging their obligations under the regulations

The concept of professional trustee company will be introduced on an optional basis in the mutual fund regulations along with the eligibility criteria.

Reporting requirements for trustees have also been modified. For instance prior approval from trustees is necessary for the appointment of senior personnel such as the CEO and other key personnel in the selection process itself. Qualifications for appointment of compliance officers have also been proposed.

The rights and obligations of the sponsors have also been specified. Every AMC will have to maintain and preserve books of accounts of the schemes for eight years, including unit certificates for three years from the date on which the units were redeemed or converted or extinguished upon winding up of the scheme. Any other record and document for a period of five years will have to be kept.