9.5 Regulation of Collective Investment Schemes

The CIS = the broader genus (the mutual fund is the regulated species): any scheme where the public's money is pooled for collective investment-and-shared returns. The regulation's problem (the exam's core): the perimeter problem — the unlicensed schemes' world outside the securities-and-banking nets: the cooperatives' deposit-and-investment schemes (the cooperative sector's crisis — the deposit-taking cooperatives' mega-fraud era), the network-marketing-and-pyramid structures (the Unity Life saga), the real-estate-and-hyper funds, the crypto-and-online schemes (the newest face — the bans-and-warnings era). The regulatory responses: the sectoral statutes' patchwork (the Cooperative Act's, BAFIA's, NRB's-and-SEBON's warnings), the unlawful-deposit-taking prohibitions, the cross-sector coordination's deficit (the honest critique: the fragmented perimeter let the schemes breed — the "regulatory arbitrage" lesson of the Nepali 2010s).