Capital market update: Issurance of Collective Investment Scheme

On 20 July 2023, the Non-Banking Financial Services Authority (“NBFSA”) issued Prakas 035 on the Issuance of the Fund Units of Collective Investment Scheme (“CIS”) to set out the conditions and procedure for issuing CIS Fund Units with the purpose to ensure accountability and transparency in accordance with the applicable laws and regulations.


To issue fund units of CIS, a fund management company (“FMC”) shall establish the fund, apply for the issuance and offering of fund units, and register such fund.

CIS funds must:

  • obtain a prior approval from the Securities and Exchange Regulator of Cambodia (“SERC”);
  • establish a unique name for the funds;
  • be issued for subscription within 60 (sixty) days or any other period permitted by the SERC;
  • be registered with the SERC within 07 (seven) working days or any other period permitted by the SERC upon the completion of the issuance of the funds; and
  • register the subscribers of the funds.


CIS funds can be invested in securities, financial instruments, and/or investment instruments in the Kingdom of Cambodia including:

CIS fund can also be invested in foreign financial markets if those markets: (a) are legally authorized, (b) serve public interests, (c) provide appropriate market information, and (d) permit capital or fund transfers.

Reporting obligations

An FMC, with the assistance of a distribution company, shall notify and report to fund unit holders and SERC in event of:

  • Changes of collective investment contract
  • Changes of FMC or trustee or custodian agent in securities sector
  • Changes in risk factors of the funds
  • Changes of dividend policy of the funds
  • Other material changes which influence investment decisions or rights of fund unit holders
  • Amendments to the investment policy such as the purpose or strategy of fund investments which prior approval from SERC is obliged and
  • Changes or determinations of new fees or expenses, or increase in fees or expenses in relation to the funds which prior approval from SERC is required.


The termination of CIS funds can be made by the decision of the fund unit holders, expiration of the specified term in the underlying CIS contract, a decision of the competent court, or other events outlined in the underlying CIS contract or determined by the SERC. In case of termination of the CIS fund, a liquidator accredited by and registered with the SERC must be appointed to liquidate the active assets and wind up the terminated CIS funds.