SERC Issues Prakas on Reporting Obligations and Request for Approval of Central Counterparties and Derivatives Brokers
On 18 January 2021, the Securities and Exchange Regulator of Cambodia ("SERC"), previously known as the Securities and Exchange Commission of Cambodia (SECC), issued a new Prakas No. 001/21 SECC/P on the Obligations to Provide Reports, Notify, and Request for Approval of Central Counterparties and Derivatives Brokers ("New Prakas").
The New Prakas sets out the following obligations of central counterparties and derivatives brokers in accordance with the Law on the Issuance and Trading of Non-Government Securities and the Sub-Decree in relation to this, as well as relevant regulations:
- the reporting obligations;
- the changes or occurrences which require notification to SERC; and
- the events or circumstances which require SERC’s prior written approval.
The New Prakas is issued to monitor and supervise the central counterparties’ and derivative brokers’ observance and compliance with such obligations and to ensure transparency, accountability and good order among the stakeholders. The New Prakas applies to the central counterparties and derivatives brokers who have obtained licences / permits from SERC.
On 30 December 2020, the Royal Government of Cambodia issued Sub-Decree No. 224 on Construction Permit ("Sub-Decree No. 224") aimed at determining the authority, conditions, and procedures for the issuance of construction permits, construction repair permits, demolition permits, construction site opening permits, and extension permits. Sub-Decree No. 224 replaces and repeals Sub-Decree No. 86 on Construction Permit dated 19 December 1997.
Sub-Decree No. 224 governs all types of construction except those that are otherwise set out in separate regulations.
The Law on Organization and Functioning of Non-Banking Financial Services Authority ("Law") was promulgated on 16 January 2021. Under the Law, a Non-Banking Financial Services Authority ("Authority") is created to regulate and supervise the non-banking financial sector in Cambodia.
The Authority is established to: (i) enhance and ensure the effective implementation of regulations relating to the non-banking financial sector; (ii) monitor the development in the non-banking financial sector; and (iii) promote the development and utilization of financial technology in the non-banking financial sector. The non-banking financial sector includes, but is not limited to, insurance and private pension, securities, social security, trust, accounting and audit, real estate, pawnshop and transfer as security.
The scope and authority as regulator of the Ministry of Economy and Finance in relation to non-banking sector as well as those as regulator of the Securities and Exchange Commission of Cambodia and the National Accounting Council are to be transferred to and consolidated within the Authority.
MLVT has issued Notification No. 003/21 dated 21 January 2021 on the Payment of the Back Pay of Seniority Payment prior to 2019 and the Seniority Payment for 2020 and 2021 for Manufacturing Factories/Enterprises ("Notification").
According to the Notification, the payment of back pay of seniority payment prior to 2019 and seniority payment for 2020 and 2021 for manufacturing factories/enterprises shall resume in 2021.
MLVT has issued Prakas No. 430/20 MLVT/Pr.K.CBN on the Implementation of Labour and Vocational Training Related Public Services via Online Systems ("Prakas"). According to the Prakas, the online systems were launched to strengthen the quality and effectiveness of public services, and foster transparency and accountability in the public sector.
MLVT Issues Two Prakas on Physical Examination Requirements and Provision of Health Check Services for Cambodian Employees
On 31 December 2020, MLVT issued two sets of Prakas, namely Prakas No. 429/20 on Physical Examination of Cambodian Employees ("Prakas No. 429") and Prakas No. 433/20 on the Agreement between Department of Occupational, Safety, and Health of MLVT and Health Facilities in order to Provide Health Check Services for Cambodian Employees (“Prakas No. 433"). Prakas No. 429 mandates employees to take physical examination before they can start their work. Prakas No. 433 sets out the requirements that health facilities must meet before they can provide health check services to Cambodian employees.
On 26 December 2020, the Law on Government Securities was promulgated via Royal Kram No. NS.RK.0220.040 ("New Law"). The New Law abrogated the Law on Government Securities promulgated through Royal Kram No. NS.RK.0107.001 dated 10 January 2007.
The New Law aims to provide a general framework to: (i) manage the issuance and trading of government securities; (ii) provide a transparent, accountable, effective, and efficient management of government securities; and (iii) ensure sustainable management of public debt. The New Law covers the issuance, trading and management of government securities both within and outside of Cambodia.
This Update provides an overview of the key features of the New Law.