Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting system of the polish investment funds Mirosław Jeżowski

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Legal environment investment funds Area: investment funds DIRECTIVE 2009/65/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS IV) Act on investment funds accounting Area: accounting Act on accounting Regulation on investment funds accounting

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive: UCITS IV Directive:Preambule (15) (15) A home Member State should be able, as a general rule, to establish rules stricter than those laid down in this Directive in particular as regards authorisation conditions, prudential requirements and the rules on reporting and the prospectus. (58) (58) Member States should make a clear distinction between marketing communications and obligatory investor disclosures provided for under this Directive. Obligatory investor disclosure includes key investor information, the prospectus and annual and half-yearly reports. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive : UCITS IV Directive : CHAPTER IX OBLIGATIONS CONCERNING INFORMATION TO BE PROVIDED TO INVESTORS CHAPTER IX OBLIGATIONS CONCERNING INFORMATION TO BE PROVIDED TO INVESTORS SECTION 1 Publication of a prospectus and periodical reports SECTION 1 Publication of a prospectus and periodical reports Articles 68–75 Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive : UCITS IV Directive : Article An investment company and, for each of the common funds it manages, a management company, shall publish the following: (a) a prospectus; (b) an annual report for each financial year; and (c) a half-yearly report covering the first six months of the financial year. 2.The annual and half-yearly reports shall be published within the following time limits, with effect from the end of the period to which they relate: (a) four months in the case of the annual report; or (b) two months in the case of the half-yearly report. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive: UCITS IV Directive: Article (…) 2. (…) 3. The annual report shall include a balance-sheet or a statement of assets and liabilities, a detailed income and expenditure account for the financial year, a report on the activities of the financial year and the other information provided for in Schedule B of Annex I as well as any significant information which will enable investors to make an informed judgment on the development of the activities of the UCITS and its results. 4. The half-yearly report shall include at least the information provided for in Sections I to IV of Schedule B of Annex I. Where a UCITS has paid or proposes to pay an interim dividend, the figures must indicate the results after tax (…) Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive: UCITS IV Directive: Article 75 1.The prospectus and the latest published annual and half-yearly reports shall be provided to investors on request and free of charge. 2.(…) 3.The annual and half-yearly reports shall be available to investors in the manner specified in the prospectus and in the key investor information referred to in Article 78. A paper copy of the annual and half-yearly reports shall be delivered to the investors on request and free of charge. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (1) UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (1) I. Statement of assets and liabilities: transferable securities bank balances other assets total assets liabilities net asset value. II. Number of units in circulation III. Net asset value per unit Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (2) UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (2) IV. Portfolio, distinguishing between: (a) transferable securities admitted to official stock exchange listing; (b) transferable securities dealt in on another regulated market; (c) recently issued transferable securities of the type referred to in Article 50(1)(d); (d) other transferable securities of the type referred to in Article 50(2)(a); and analysed in accordance with the most appropriate criteria in the light of the investment policy of the UCITS (e.g. in accordance with economic, geographical or currency criteria) as a percentage of net assets; for each of the above investments the proportion it represents of the total assets of the UCITS. Statement of changes in the composition of the portfolio during the reference period. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (3) UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (3) V. Statement of the developments concerning the assets of the UCITS during the reference period including the following: income from investments other income management charges depositary’s charges other charges and taxes net income ddistributions and income reinvested changes in capital account appreciation or depreciation of investments any other changes affecting the assets and liabilities of the UCITS transaction costs, which are costs incurred by a UCITS in connection with transactions on its portfolio Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (4) UCITS IV Directive (ANNEX I, SCHEDULE B) Information to be included in the periodic reports (4) VI. A comparative table covering the last three financial years and including, for each financial year, at the end of the financial year: the total net asset value the net asset value per unit VII. Details, by category of transaction within the meaning of Article 51 carried out by the UCITS during the reference period, of the resulting amount of commitments. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC) FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC)Article 5 1. By way of derogation from Article 4 (1) and (2), the Member States may prescribe special layouts for the annual accounts of investment companies and of financial holding companies provided that these layouts give a view of these companies equivalent to that provided for in Article 2 (3). 2. For the purposes of this Directive, ‘investment companies’ shall mean only: (a) those companies the sole object of which is to invest their funds in various securities, real property and other assets with the sole aim of spreading investment risks and giving their shareholders the benefit of the results of the management of their assets; (b) those companies associated with investment companies with fixed capital if the sole object of the companies so associated is to acquire fully paid shares issued by those investment companies without prejudice to the provisions of Article 20 (1) (h) of Directive 77/91/EEC (2). Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC) FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC)Article 35 1.(…) c) aa) Value adjustments may be made in respect of financial fixed assets, so that they are valued at the lower figure to be attributed to them at the balance sheet date. cc)The value adjustments referred to in (aa) and (bb) must be charget to the profit and loss account and disclosed separately in the notes on the accounts if they have not been shown separately in the profit and loss account.Article 36 By way of derogation from Article 35 (1) (c) (cc), the Member States may allow investment companies within the meaning of Article 5 (2) to set off value adjustments to investments directly against ‘Capital and reserves’. The amounts in question must be shown separately under ‘Liabilities’ in the balance sheet. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC) FOURTH COUNCIL DIRECTIVE of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC)Article 60 Pending subsequent coordination, the Member States may prescribe that investments in which investment companies within the meaning of Article 5 (2) have invested their funds shall be valued on the basis of their fair value. In that case, the Member States may also waive the obligation on investment companies with variable capital to show separately the value adjustments referred to in Article 36. Legal environment

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting system Accounting company Management company Investment fund Transfer agent outsourcing Auditor Depositary Polish Financial Services Authority

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting responsibilities Management Company Management Company o responsible for the fund’s accounting o may outsource the fund’s accounting activities Transfer agent Transfer agent o responsible for the register of the unitholders – part of the fund’s books Auditor Auditor o audit of the fund’s financial statements Depositary Depositary o responsible for the suoervision over the valuation

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Fund’s books Standard part Standard part – the same as for other companies Fund specific parts: Fund specific parts: o Calculation of the NAV and NAV per unit / certificate o registers of the unitholders (open-end fund, specialized open-end fund) o registers of the certificates (close-end fund)

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting system and investment limits Investment limits versus accounting rules Accrual accountingMixed accountingCash accounting

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting system and investment limits Distinction between accounting and transactional events in the fund’s assets Active exceedings of The limits Passive exceedings of the limits

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Accounting system and investment limits Repo and reverse repo transactions Problems with every solution Accounting solutions

Ukraine (nr 46514): Expert Mission on Supervision of Investment Funds` Activities - TAIEX Opened part