On 30 October 2018, the Minister of Economy and Finance (“NEF”) issued Prakas No. 008/18 SECC/BR.K on Obligations to Submit Reports, Notify, and Request for Approval of Securities Firms And Investment Advisory Firms (“Prakas”) to supervise and monitor the fulfillment of obligations of securities firms and investment advisory firms licensed/authorized by Securities and Exchange Commission of Cambodia (“SECC”).

Scope

This Prakas has a scope applying to securities firms and investment advisory firms licensed/authorised by SECC.

Reporting obligations

Monthly reports.

A licensed/authorised firm shall submit to SECC the following monthly reports no later than the 10th day of the following month:

1- Report detailing securities, fund and/or assets of each client kept by the firm in accordance with Article 47 of the Anukret.

2- Report on handling of dispute and client complaints.

3- Updated list of client account specifying the clients who opened and

closed the account within the month.

Quarterly reports

A licensed/authorised firm shall submit to SECC the following quarterly reports no later than the 15th day of the first month of the following quarter:

1- Quarterly internal financial statements prepared in accordance with the Law on Corporate Accounting and Auditing, showing clearly the profit structure.

2- Report on the securities trading of directors, partners, and employees of the firm.

3- Internal control and compliance checklist.

4- Report detailing employees, qualified persons and licensed representatives as well as dividing in each business unit.

Annual reports

A licensed/authorised firm shall submit to SECC the following annual reports no later than the 31st March of the following year:

1- Annual financial statements audited by independent auditor and prepared in accordance with the Law on Corporate Accounting and Auditing;

2- Audit reports and other letters received from independent auditor;

3- Report on the achievements and challenges of licensed firms following the business plan.

4- Professional indemnity insurance contract, if any.

5- Current structure of licensed/authorised firm including all holding/ parent company, subsidiaries, and branches of licensed/authorized firm;

6- Certification letter from all related companies which guarantee the debt obligations of licensed/authorised firm and relevant documents, if any;

7- Current organization chart of licensed/authorised firm;

8- Certification letter signed by an independent auditor of the company providing audit service in securities sector in relation with securities, fund or assets of clients in accordance with point 7 of Article 47 of Anukret;

9- Other information determined by the Director General of SECC.

Deadline of reporting

Penalty

Transactional Fine

Without considering other sanctions as stipulated in the law and regulation in force in the Kingdong of Cambodia, the licensed/authorized firm committing the offenses against Article 5, Article 6, Article 7, Article 9, Article 10, Article 11, Article 12, Article 13, Article 14, Article 15, Article 16, Article 17, Article 18,

Article 19, Article 20, Article 21, Article 22 or providing false information intentionally or with significant negligence or not complying with the instruction or requirement of the Director General of SECC shall be subject to the administrative sanction as prescribed in Article 24 of this Prakas and/or transactional fine from SECC in cash not more than KHR200,000,000 (two hundred million).

A licensed/authorized firm being late in providing reports, notifying or replying in respect of time period or date as prescribed in Article 8, Article 10, Article 11, paragraph (1) and (3) of Article 14, paragraph (3) of Article 16 or paragraph (3) of Article 19 of this Prakas shall be subject to the administrative sanction as stipulated in Aritcle 24 of this Prakas and/or transactional fine from SECC in cash as follows:

1- KHR1,000,000 (one million) per day for being late in providing report or sending notification to SECC.

2- KHR400,000 (hour hundred thousand) per day for being late in replying or providing other information to SECC.

Administrative Sanction

Administrative sanctions are as follow:

1- Warning;

2- Correction order;

3- Suspension or dismissal of director and/or senior staff;

4- Restriction on license/authorization;

5- Suspension or revocation of license/authorization.

Click here to download Prakas.