The Bangladesh Securities and Exchange Commission (BSEC) and other regulatory bodies should have coordination between them while supervising the mutual fund sector.
"It [monitoring the sector] is not a task that can be performed by a single department of the BSEC. It needs coordinated efforts from all the departments of the BSEC. Not only the BSEC, it needs help from other regulatory bodies, such as the Bangladesh Bank, insurance development authority (IDRA)," said BSEC commissioner Dr. Mizanur Rahman at a workshop on mutual funds on Wednesday.
There have been instances in Bangladesh, when asset managers embezzled unit holder's money.
Last year, the BSEC identified Universal Financial Solutions' (UFS) involvement in misappropriation of Tk158.37 crore from four mutual funds managed by them.
Legal complications prevent the authorities from taking direct actions against financial criminals, including fraud asset managers.
So, the capital market watchdog alone will not be able to take action against fraud asset managers. They need help from other authorities.
The seminal was titled "Regulatory oversight and governance of mutual funds in Bangladesh".
BSEC commissioner Mr Rahman said the regulator was working to develop rules and regulations to improve the sector in Bangladesh.
BSEC chief Shibli Rubayat Ul Islam was the chief guest at the workshop.
He said the governance of the mutual fund sector must be improved. Mutual funds are a very important part of the capital market. "If we can improve the mutual fund sector, we will be able to improve the capital market."
© 2024 - All Rights with The Financial Express
