9.4 Investor Protection in Mutual Funds

The protections' layers (the exam's list): the structure's protection (the segregation-and- custody — 9.3), the disclosure's protection (the offer document, the periodic NAV-and-portfolio publications), the conduct's protection (the AMC's-and-trustee's fiduciary duties; the conflict-of- interest bars — the self-dealing prohibitions), the redemption-and-exit rights (the open-ended fund's liquidity promise), the regulator's protection (SEBON's inspections-and-interventions), and the failure's remedies (the compensation faces; the winding-up-and-distribution discipline). The honest audit: the retail-investor education's deficit (the NAV's-and-risk's understanding), the equity-heavy funds' concentration culture, and the fee-transparency's complaints.