Monetary fine to EEREIF Management for violating disclosure obligation
The Financial Supervision Authority has levied a 14,000-euro fine on AS EEREIF Management (formerly Gild Property Asset Management AS) as the management company violated provisions of the Investment Funds Act and a Minister of Finance regulation in accordance with which the internal rules of a public fund’s assets must be posted on the management company’s website.
The website of AS EEREIF lacked internal rules for determining NAV of the assets of Eastern Europe Real Estate Investment Fund; they were published only after misdemeanour proceedings were launched by the Financial Supervision Authority.
The principles for determining value of fund assets are set forth for all asset classes which under the fund’s investment policy can be invested in. The procedure for determining the net value of the fund’s assets must with sufficient reliability ensure that the fair value of the assets can be found.