Bank of Lithuania
2019-02-25
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With regard to foundation documents of all types of collective investment undertakings, the Bank of Lithuania recommends to disclose only essential information on asset valuation and the procedure for calculation and publication of investment units or shares; detailed information on the calculation of the net asset value, asset valuation and the procedure for calculation and publication of investment unit or share values should be provided in the prospectus.

A prospectus is one of the most important documents for investors considering acquiring investment units or shares. Each collective investment undertaking must have a valid prospectus containing sufficient information to allow investors to properly assess the proposed investment offer and related risks.

Taking this into account and seeking to reduce the administrative burden, the Bank of Lithuania has issued a recommendation to change the existing practice where foundation documents of collective investment undertakings contain detailed information on the calculation of net assets, thus disclosing all information on the asset valuation methodology. The same information is usually reiterated in the prospectus.

On 14 February 2019, the Board of the Bank of Lithuania adopted a package of resolutions implementing amendments to the legislation related to collective investment undertakings. One of the adopted resolutions supplemented the Rules for the Content and Form of a Collective Investment Undertaking Prospectus and Key Investor Information Document. Such amendments are aimed at disclosing more information in a prospectus on asset valuation procedures, the rules for estimating net assets and the procedure for calculation and publication of the investment unit or share value.

An example of how to disclose information on asset valuation, calculation or publication of an investment unit or share value in foundation documents of collective investment undertakings is available here. (23.5 KB )