The Cambodian Ministry of Economy and Finance has officially issued a new decree approving the legal sale of unit trusts by fund management companies. According to the "Ministerial Order on the Offering of Unit Trusts for Joint Investment Plans," signed by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, fund management companies can raise funds from the public through the public sale of unit trusts and utilize these funds to invest in local and foreign financial instruments and other investment projects.
Apart from investing in Cambodian government bonds and approved financial products, fund management companies must undergo review and approval by the Cambodian Securities and Exchange Commission when investing in other financial instruments or projects. When investing abroad, fund management companies must select legally established financial markets that are related to public interest and possess sufficient information. For investments in other instruments or projects, approval from the Cambodian Securities and Exchange Commission is also required.
The ministerial order points out that the Cambodian Securities and Exchange Commission will issue separate guidelines to categorize and specify the "limits" for various types of investment instruments or projects that fund management companies can invest in. It also stipulates that all participants in joint investment plans, including fund management companies, trustees, distributors, and fund administrators, must obtain a business license issued by the Cambodian Securities and Exchange Commission and comply with information disclosure requirements.
The government's decision to allow joint investment plans to operate and function aims to further promote the development of Cambodia's capital market. This move diversifies investment products, provides businesses with more financing channels, reduces financing costs, and consequently expands business operations. Ultimately, this is expected to contribute to the overall economic development of the country.
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