Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Off-site supervision of the investment funds industry in Poland Mirosław Jeżowski

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Definition – off-site supervision Methods of supervision Off-site supervisionOn-site supervision

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Definition – off-site supervision Methods of supervision Off-site supervisionOn-site supervision

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Off-site supervision Funds- non issuers (open-end funds, specialized open-end funds, close-end funds) Funds-issuers (close-end funds) Information only for PFSA Information for investors (unitholders)  Current reports  Periodic reports: o quarterly statements o half-yearly financial statements o yearly financial statements  NAV per unit  Prospectuses  Periodic reports: o half-yearly financial statements o yearly financial statements  Current reports  Periodic reports: o quarterly reports o half-yearly reports o yearly reports  Current reports (less that for PFSA)  Periodic reports: o quarterly reports o half-yearly reports o yearly reports

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Supervised areas of the fund’s activites Investment policy Transactions Financial non-transactional events Changes in NAV per unit Non-transactional agreements Organisational changes Changes in the documents for unitholders Other Open-end funds / specialized open-end funds Off-site supervised areas – current reports

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Investment policy Breach of the investment limits caused by events different than: o changes in the asset prices o accrual changes of the assets o buy-sell-back transactions o changes in the fund’s capital

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Transactions Sell or redemption of the units of certificates of other funds managed by the same management company; Credits exceeding (altogether with other credits): o 5 % NAV o 35 % NAV of specialized open-end fund using the investment policy of the close-end fund

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Financial non-transactional events decrease of the funds NAV beneath: zł, zł, zł, zł and zł; suspension of the redemption of units / starting the redemption; suspension of the issue of units / starting the issue of units; incorrect valuation of the NAV per unit; Lack of valuation of the NAV per unit in the days of valuation; Loose of the assets exceeding: o 10 % of assets – when assets value is lower than zł, o 5 % of assets – when assets value is higher than zł, disapproval of the fund’s financial statements.

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Changes in NAV per unit publication of the intention to divide or merge the units division or merger the units

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Non-transactional agreements donation to the fund collateral based on the fund’s assets (more that 5%)

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Organisational changes Changes in the funds organisational data: o fund’s/subfund’s name, o special type of the fund, o type of the fund; resolution of a board of investors to dissolve the fund; creation of the subfund; merger of the subfunds; intention to liquidate subfund; liquidation of the subfund; change of the depository changes in the agreement with the depository agreement with transfer agent

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Changes in the documents for unitholders changes in the prospectus and simplified prospectus;

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Other judicial proceeding against the fund;

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Supervised areas of the fund’s activites Investment policy Transactions Financial non-transactional events Changes in NAV per certificate Non-transactional agreements Organisational changes Other Close-end funds (non-issuers) Off-site supervised areas – current reports

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Investment policy Breach of the investment limits caused by events different than: o changes in the asset prices o accrual changes of the assets o buy-sell-back transactions o changes in the fund’s capital

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Transactions changes in the portfolio of the portfolio fund

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Financial non-transactional events incorrect valuation of the NAV per certificate; lack of valuation of the NAV per certificate in the days of valuation; loose of the assets exceeding 10 % of fund’s disapproval by the Investors’ meetings of the fund’s financial statements. changes in the fund’s subsidiaries; collateral exceeding 10% of fund’s assets; payout of the proceeds from the sale of the fund’s investments; not making the payment by the unitholder who posess the certificates which haven’t been fully paid for; debt issue;

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Changes in NAV per certificate NAV and NAV per certificate; merger or split of the certificates; redemption of the certificates;

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Non-transactional agreements donation to the fund; collateral based on the fund’s assets (more that 5%).

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Organisational changes Changes in the funds organisational data: o fund’s/subfund’s name, o special type of the fund, o type of the fund; resolution of a board of investors to dissolve the fund; creation of the subfund; merger of the subfunds; intention to liquidate subfund; liquidation of the subfund; change of the depository changes in the agreement with the depository

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Other judicial proceeding against the fund regarding the liabilities exceeding 10% fund’s NAV; other judicial proceedings against the fund.

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Close-end funds - issuers financial supervision based on the information sent to the regulated market, with several reports being sent only to the supervisor;

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Role of Depositary Article 231 of the Act on investment Funds A depositary shall promptly notify the Commission if the fund is acting in breach of the law or does not give due regard to the interests of the unit-holders.

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Role of Depositary PFSA Investment fund Depositary REPORT INFORMATION

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Role of Auditor audit of the yearly financial statement of the management company audit of the yearly financial statement of the fund simplified audit of the half-yearly financial statement of the fund statement that the methods and principles used in the valuation of an investment fund’s assets comply with the accounting regulations applicable to investment funds, are complete ant comply with the fund’s investment policy

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Role of Auditor Article 223 of the Act on Investment Funds An auditor shall be obliged to notify the Commission, through the qualified auditor of financial statements of:  a management company;  an investment fund;  any other entity performing activities related to the management of a fund under an agreement with a management company or an investment fund, of any material misconduct in the operations of the audited entity or of any breach of the applicable regulations identified during the audit or review of the financial statements of such entities.

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX 27 Investment funds sector in Poland