CODE
050.0301 N.24.12.13
December 24, 2013,No. 301-N
Approval of Regulation 10/03 “Reports on Own Funds and Funds Managed by Investment Fund Manager Filed to the Central Bank of Armenia by Investment Fund Manager; Procedure, Terms and Conditions of Reporting; Providing the Central Bank of Armenia with Additional Information on Making Individual Decisions by Investment Fund Manager”
In pursuance of regulating the reports on own funds and funds managed by investment fund managers as well as the procedure, terms and conditions of reporting to the Central Bank of Armenia by investment fund managers,
Basing upon Article 92 (1) and (3) and Article 104 (2) of the Republic of Armenia Law on “InvestmentFunds”, and
By virtue ofArticle 20 "e"of the Republic of ArmeniaLaw on “Central Bank of Armenia” and Article 16 of the Republic of ArmeniaLaw on “LegalActsand Regulations”,the Board of the Central Bank of Armenia
Enacts:
1.Approve the Central Bank Regulation 10/03 “Reports on Own Funds and Funds Managed by Investment Fund Manager Filed to the Central Bank of Armenia by Investment Fund Manager; Procedure, Terms and Conditions of Reporting; Providing the Central Bank of Armenia with Additional Information on Making Individual Decisions by Investment Fund Manager”, pursuant to Appendix attached hereto.
2.This decisiontakes effect on the tenth day following its officialpublication.
ArthurJavadyan,
Chairman of the Central Bank of Armenia
December 27, 2013
c. Yerevan
APPENDIX
Approved: under the Central Bank Board Resolution No. 301-N,
Dated: December 24, 2013
Regulation 10/03
“Reports on Own Funds and Funds Managed by Investment Fund Manager Filed to the Central Bank of Armenia by Investment Fund Manager; Procedure, Terms and Conditions of Reporting; Providing the Central Bank of Armenia with Additional Information on Making Individual Decisions by Investment Fund Manager”
Chapter 1: General provisions
1.This regulation establishes:a) the format and content of the reports on own funds and funds for public investment (hereinafter “the Fund/s”), managed by an investment fund manager (hereinafter “the Manager/s”), which are filed to the Central Bank of Armenia (hereinafter “the Central Bank”); b) the procedure, terms and conditions of reporting; and c) providing additional information on certain decisions of the Manager about which the Manager is required to communicate to the Central Bank.
2.Thesums in the reports as established under this regulation shall be expressed in Armenian Dram, in the thousand dram’s precision.
3.Foreign currency items in the tables shall be presented in monetary terms, using average market exchange rate set by the Central Bank for the relevant foreign currency as of the closing day of the reporting period. The reports filed to the Central Bank by the Managers and the Funds shall be prepared in accordance with the Central Bank’s guidelines on basic principles of accounting of assets and liabilities of investment fund managers.
4.For records of purchase and sale of financial assets and liabilities, the Managersshall be required to use the method of final settlement date.
Chapter 2: Basic definitions
5.The definitions used in this regulation have the following meanings:
1)Date:the date is indicated in the following format – day/month/year, (for example, 01/01/2012).
2)Reportingyear:a period spanning from 1stof Januaryup to 31st of Decemberinclusive. To the Manager, the first reporting year will include the period spanning from the day on which an activity license has been granted for fund management up to 31st of December(inclusive) of that year.
3)Reportingquarter:each of four time intervals consisting of three months, beginning the calendar year. To the Manager, the first reporting quarter will include the period spanning from the day on which an activity license has been granted for fund management up to the closing of that quarter.
4)Reportingmonth:each of twelve time intervals of the year, beginning the calendaryear. To the Manager, thefirstreporting monthwill include the period spanning from the day on which an activity license has been granted for fund management up to the closing of that month.
5)Reporting day:each working day.
6)Reporting period:a reportingmonth, reportingquarterorreportingyear.
7)Netassetsvalue:the value calculated pursuant to the Central Bank Regulation 10/04 “Calculation of Net Assets Value of Investment Funds”as established by the Republic of Armenia Law on “Funded Pension Contributions” and approved under the Central Bank Board Decision No. 335-N, dated December 12, 2011.
8)Effective management premium: part of premium which depends on the profitability of the Fund.
6.Theotherdefinitions used in this regulation have the same meaning as in the Republic of Armenia Law on “Funded Pension Contributions” and the Republic of Armenia Law on “InvestmentFunds”.
Chapter 3: Reports on Own Funds and Funds Managed by Investment Fund Manager
Filed to the Central Bank
7.The Managershall file the following reports at the following time interval to the CentralBank:
Report No. / Report name / Time intervalOn the Manageractivity
Balance Sheet / monthly, annually
Income and Expense Account / monthly, annually
Total Capital, its Minimum Size and the Participation in the Funds / monthly
Generation of or Change in the Statutory Capital / upon generation or change in the statutory capital
Activity of the Manager / annually
On the Managed Funds
The Fund and the Fund’s Net Assets / daily
The Structure of Fund Investment / daily
The Fund’sIncomes and Expenses (change in net assets value) / monthly
The Employer Schemes / monthly
On Maintaining the Registry of Voluntary Funded Pension Scheme Participants
10. / Participation in Voluntary Pension Funds and the Units (Shares) Purchased in There / monthly
11. / Distribution of Aggregate Value of the Units (Shares) of Voluntary Pension Fund Participants / annually
12. / Disbursements from Voluntary Pension Funds / annually
8.Where the Manager also provides the service as specified in Article 52 (4) of theRepublic of Armenia Law on “Investment Funds”, reporting forms No. 7 and No. 8 as provided for in the Central Bank Regulation 4/03 “Statements of Investor Service Providers Filed to the Central Bank; Procedure, Terms and Conditions of Reporting” (approved under the Central Bank Board Resolution No. 140-N, dated April 22, 2008) will be submitted, as well.
9.Where the Manager also provides the service as specified in Article 52 (5) ‘2’ of the Republic of Armenia Law on “Investment Funds”, reporting form No. 18 as provided for in the Central Bank Regulation 4/03 “Statements of Investor Service Providers Filed to the Central Bank; Procedure, Terms and Conditions of Reporting” (approved under the Central Bank Board Resolution No. 140-N, dated April 22, 2008) will be submitted, as well.
Chapter 4: Filing of Reports
10.The reports as referred to in paragraph 7 of this regulation shall be filed to the Central Bank through the CBANet system. The reports will be filed using a protected template to the files which are provided by the Central Bank. The sample forms of these files are set out in Appendix 1-12 attached hereto.
11.In case of the CBANet system failure, the reports shall be submitted on magnetic or other electronic storage devices, while providing a notice of the failure.
12.The names of the reports shall be coded as follows:
Manager code / Dash / Report number / Dot / AbbreviationXXXXX / _ / XX XX / . / Xls
13.In the report name, the first two characters of the report number shall be used to denote the activity of the Manager.
14.In monthly, quarterly and annual reports, the section “Date from…../to…..”shall be used to indicate the first and last days of the reporting period. In the context of preparation of reports, whether calendar days are numbered 365 or 366, these will constitute one year.
15.The reports which the Manager submits to the Central Bank shall contain digital certificates, if they are not filed through the CBANet system.
16.The monthly and quarterly reports shall be filed by the 7th working day (inclusive) of the month following the reporting period.
17.The timing for filing annual reportsis defined by January 30th (inclusive) of the year following the reporting period.
18.Report No. 4 shall be filed on the 10thday (inclusive) following the making of the respective change.
19.Where paragraph 7 of this regulation requiresthat any particular report be filed on both monthly and annual bases, the December’s monthly report shall be skipped.
20.Where the last day for filing the report falls on a non-working day, the report will be filed on the next working day.
21.The reportswhich are filed after the timeframe specified by this regulation and which have been duly corrected as required by this regulation shall be filed electronically in accordance with paragraph 10 of this regulation.Where several corrected reports have been filed for the same reporting period,the reliable report will be the last filed corrected report.
22.The electronic version of the report must make it possible for reading in electronic format, must be completed using an Arial Armenianfont, with no blank rows left between the two completed ones. The electronic version of the report must be free of software or other technical defect. This requirement does not apply to the Manager, if such software or other technical defects of the electronic version of the report come from the files provided by the Central Bank.
23.In completing the reports, the SWIFT codes, Telex numbers, securities identification codes, currency ISOand other codes shall be presented in English.
24.Thoseitems in the reports, which are not used for denoting investment activities of the Manager, shall not be completed. In cases where it is impossible to determine the residency of the item, the data will be completed in the sections provided for residents.
25.The information contained in the reports which the Manager files to the Central Bank must be accurate and complete.
Chapter 5:Seeking Reference, Explanation and Other Deliverables from the Manager by the Central Bank
26.The Central Bank is authorized to demand,through a notice, additional reports/statements, reference information, explanation and other such deliverables from the Manager, its directors and agents acting in the structure or on behalf of the Manager about the activities related to fund management.
27.The notice as referred to in paragraph 26 of this regulation shall be delivered in the paper form by mail or in person, or via telegram, official e-mail of the Central Bank, the CBANet system or other reserve means of communication; the paper notice shall be signed by the head or deputy head of the department which is in charge of the Manager and Fund oversight.
28.The Manager or its officer shall be required to deliver the required reference information, explanation and (or) other such deliverables to the Central Bank within 3 working days after receiving the notice as referred to in paragraph 27 of this regulation, unless such noticespecifies a longer period for presentation.
29.The Manager shall deliver the required reference information, explanation and (or) other such deliverables in the paper form by mail or in person, or via the CBANet system. In cases when the CBANet system is not available, these deliverables can be submitted via the Internet, using a platform designed for acceptance of reports.Where these deliverables are not possible to submit due to the system failure, magnetic or electronic storage devices will be used, while a notice of the failure should be provided therewith. The deliverables as referred to hereunder must contain digital certificates, if they are not sent through the CBANet system.
Chapter 6: How to Complete the Reports Filed to the Central Bank
30.Report No. 1 about the financial position shall be completed as of the last day of the reporting period, presenting the Fund Manager’s assets, liabilities, equity, and off-balance sheet items in accordance with Appendix 1.
31.In the columns “Group 1 Foreign Currency” and “Group 2 Foreign Currency”, the foreign currency shall be grouped pursuant to the Central Bank Regulation 2 “Regulation of Banking; Main Prudential Standards for Banking” (approved under the Central Bank Board Resolution No. 39-N, dated February 9, 2007). The figures represented in each column shall be classified by residency. The off-balance sheet items shall be completedin thousand Armenian drams. The report shall indicate the data of the last working day of the reporting period (ifthe last day was a non-working day butthe Manager operated however, the data of that day will also be indicated).
32.The accounts opened by the Manager independently for accounting treatment shall not be reflected as a separate account in the reports filed to the Central Bank.
33.The line with an abbreviation «NV» which is attached to the items of the report shall be used to indicate the principal amount of the asset or liability of the main item, whereas the line with an abbreviation «NI» shall be used to indicate the interest fee accrued in nominal interest which is still outstanding, as well as the fines and penalties accrued on that item.For example, the line «10420 NV» shall be used to indicate the principal amount of the asset included in the grand sum of the line «10420», while the line «10421 NI» shall be used to indicate the interest fee accrued but still outstanding, which is included in the grand sum of the line «10421».
34.The items of Section 85 of the Report can be left uncompleted.
35.Report No. 2 about the income and expense shall be completed using the data on a cumulative basis, to the extent of interest income and non-interest income, and interest expense and non-interest expense, accrued from the beginning of the year, in accordance with Appendix 2.
36.The lines shall be separated into resident and non-resident categories in order to pint to the source of income. For example, the income generated from proceeds of sale of securities issued by the resident to the non-resident shall be shown in sub-item “Non-resident” of the line “Net proceeds from sale of securities”.
37.The line “Accrued income from management of funds” shall be used to indicate the size of management fee (the fixed portion of it) due for the Manager for their management activities in the period under review.
38.The line “Accrued income from management of funds when such income derives from fund’sreturn” shall be used to indicate that portion of management fee paid to the Manager in the period under review, which is attributable to the fund’s return having increased as a result of management.
39.The line “Income from management of the securities portfolio” shall be used to show the size of management fee due for the Manager for their management of the securities portfolio in the period under review, as provided for in Article 52 (4) of the Republic of Armenia Law on “InvestmentFunds”.
40.The line “Income from provision of consultancy on investment in securities” shall be used to denote the amount of fees of consultancy services provided in the period under review, as provided for in Article 52 (5) of the Republic of Armenia Law on “InvestmentFunds”.
41.The line “Other non-interest income”shall be used to indicate other charges and fees, not included in sub-clauses 3.1 to 3.15 hereunder, paid to the Manager in the period under review.
42.The line “Issuance fee” shall be used to indicate the size of fees charged for the issuance of fund units (other equity securities) managed by the Manager in the period under review.
43.The line “Redemption fee”shall be used to indicate the amount of fees charged for redeeming the fund units (other equity securities) managed by the Manager in the period under review.
44.The line “Other non-interest expense” shall be used to indicate other expenses, not included in sub-clauses 4.1 to 4.23 hereunder, paid by the Manager in the period under review.
45.Report No. 3 on “Total capital, its minimum threshold and participation in funds” has Table 1 which shall be used to denote the size of the Manager’s total capital and book and regulatory values of total capital components as well as required deductions by all days of the month, as provided for in the Central Bank Board Resolution No. 119-N, dated May 2, 2011, pursuant to Appendix 3 attached hereto.
46.On the days (includingnon-business days) when the Manager’s balance sheet did not change, the previous day’s data shall be used.
47.Report No. 3 “Total capital, its minimum threshold and participation in funds” has Table 2 which shall be used to denote the amount of participation in the fund managed by the Manager. In the case of managing more than one fund, the data of each fund as of each day shall be indicated separately, adding lines with an indication of the day.
48.Report No. 4 “Statutory capital formation or change”shall be filed in the event new companies form a statutory capital and the statutory capital changes (adding-in, reduction, as well as other changes to the information previously submitted).The information on each shareholder (participant) who holds 1 percentand more of shares (stock) shall be indicated in part "A" of the report. Where the same shareholder (participant) holds both preference and ordinary shares, part "A" of the report shall allot two lines for that shareholder (participant). The information on the shareholder (participant) who holds less than 1 percentof shares (stock) shall be indicated by resident and non-residentsegments, in part "B", pursuant to Appendix 4 attached hereto.