Which body supervises an OEIC?

Which body supervises an OEIC?

• A. Authorised Corporate Director
• B. Depositary
• C. Trustee
• D. Auditor

Answer: (B)

In an OEIC, the supervising body is the Depositary. The Depositary has a key role in safeguarding the fund’s assets and overseeing its cash flows and transactions to ensure the fund operates within its rules and regulatory requirements. This oversight helps prevent asset misappropriation and confirms that the fund’s transactions are executed correctly and that the value of the assets is accurately reported. The Authorized Corporate Director runs the fund’s management and day-to-day operations, including investment decisions, but they do not provide the same asset-safekeeping and independent oversight functions as the Depositary. A unit-trust structure, by contrast, uses a Trustee rather than a Depositary. Auditors focus on verifying the accuracy of the financial statements, not supervising the fund’s assets or daily operations.

In an OEIC, the supervising body is the Depositary. The Depositary has a key role in safeguarding the fund’s assets and overseeing its cash flows and transactions to ensure the fund operates within its rules and regulatory requirements. This oversight helps prevent asset misappropriation and confirms that the fund’s transactions are executed correctly and that the value of the assets is accurately reported.

The Authorized Corporate Director runs the fund’s management and day-to-day operations, including investment decisions, but they do not provide the same asset-safekeeping and independent oversight functions as the Depositary. A unit-trust structure, by contrast, uses a Trustee rather than a Depositary. Auditors focus on verifying the accuracy of the financial statements, not supervising the fund’s assets or daily operations.