The Process of Funds Authorisation

Once the sponsoring manager has obtained approval or authorisation to conduct its general investment business, the process of obtaining authorisation for its funds to be marketed to the general public follows a similar pattern iii most countries. Documents which establish the company or trust – a deed of incorporation or a deed of trust – together with a prospectus or equivalent particulars of how the scheme will operate, are submitted together with a marketing plan, a fee and a formal request for authorisation to the relevant authority.

In addition to setting out the name and objectives of the mutual fund, the application needs to identify the key parties involved and, if applicable, provide details of their respective permissions or authorisations to conduct investment business. Regulations usually require a fund to have a manager and a custodian /Australia is an exception in this regard), but there may be others performing specialist tasks as investment adviser, registrar or transfer agent, auditor and administrator. Investment companies, of course, will also have directors and possibly other officers.

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