Securitisation fund in the institutional environment
The market associated with securitisation funds is subject to specific legal regulations, in particular those specified by the Investment Funds Act of 27 May 2004.
Authorities of the securitisation fund
The fund authorities are: the investment fund society, and the board of investors and/or investors' meeting. The fund's on-going management is the responsibility of the society (e.g. BEST TFI S.A.).
Servicer (e.g. BEST S.A.) is an entity which manages debt. Debt collection is carried out based on a relevant licence granted by the Polish Financial Supervision Authority (KNF), the procedure for management of securitised debt, and a separate agreement with the society.
Investors in securitisation funds usually include, apart from servicers, foreign investment banks, venture capital funds and individuals.
Both the fund and the society are subject to the supervision of the Polish Financial Supervision Authority (KNF). The supervision is to ensure the proper operation of the capital market, in particular the security of trading and investor protection, as well as compliance with the rules of fair trading. In the exercise of supervisory activities, investment funds and societies are bound by information obligations, and provide the Polish Financial Supervision Authority (KNF) with current and periodic reports on their activities and financial standing. In addition, these entities are supervised by a number of other state institutions, namely: the National Bank of Poland (NBP), Inspector General for Personal Data Protection (GIODO), General Inspector of Financial Information (GIIF) and the Office of Competition and Consumer Protection (UOKiK).
The depositary maintains the register of the fund's assets. Its responsibilities include the constant monitoring of factual and legal actions of the fund, as well as supervision of such activities for compliance with legal regulations and the fund's statutes, as well as control of any activities performed by the fund for its participants.
The accounting company serving the fund keeps its books, records its sale and purchase transactions for financial instruments, prepares financial statements and performs valuations of the fund's assets. It is also responsible for the preparation of the fund's financial statements.
The fund is obliged to carry out the review of half-yearly and annual financial statements. Auditing of the fund's books is carried out in accordance with the Accounting Act of 29 September 1994 and the Regulation of the Minister of Finance of 24 December 2007 on Specific Accounting Rules for Investment Funds.