In an effort to improve supervision on fund houses, SEBI has allowed trustees of mutual funds to appoint a dedicated officer who will supervise various activities of AMCs.
SEBI said that the market regulator has received feedback from MF trustees for providing them with administrative assistance in monitoring various activities of the AMCs.
With this, MF trustees can appoint a dedicated officer having professional qualification and minimum 5 years of experience in finance and financial services industry. The officer will have to directly report to the trustees. The officer will play the role and responsibilities of the trustees.
However, SEBI clarified that such an appointment does not mean that trustees are not liable for discharge of various fiduciary responsibilities.
Trustees will have to compensate the officer from the head ‘fees and expenses of trustees’ of SEBI MF regulations.
Meanwhile, SEBI has asked trustees to obtain internal audit reports at regular intervals from independent auditors appointed by them.
