The NSSMC has identified the AMC’s actions in the event of problems with individual assets in its portfolio

The National Securities and Stock Market Commission approved amendments to the Regulation on the Procedure for Determining the Net Asset Value of Joint Venture Institutions. Changes govern the actions of asset management companies (hereinafter referred to as AMCs) when, in the case of an asset, there are signs or changes in its usefulness.

In particular, the amendments to the Regulation provide an opportunity to obtain fair information on the value of net assets in order to protect the rights of investors who have invested their funds in ICI.

The document stipulates that the AMC is required to revaluate the value of certain assets of the ICI in connection with the change in the fair value of such assets, and sets the timing of such revaluation.

There are signs that indicate the impairment of a particular asset, in particular securities that are part of the assets of ICI, as well as the actions of the asset management company in case of occurrence or disappearance of these features.

Among the innovations proposed in the document are identified, including the following features:

• suspension of circulation of securities, except in case of suspension of circulation of securities in the course of carrying out corporate operations of the issuer;
• suspension of changes to the depository accounting system based on the decision of the NSSMC, except when such a decision is made at the request of a statutory authority or its official;
• Prohibition of securities trading based on the decision of the NSSMSC;
• failure of the issuer to issue debt securities within the time limits and deadlines set by the securities issue / prospectus decision, their obligations (non-payment of securities income, non-payment of securities, including non-payment of part or full par value of securities);
• bankruptcy of a securities issuer or a business company (debtor of ICI).

The text of the Regulations can be found at the link