Separate and sold SK investment trust management company
Duties of the Authorized Participant ¾ Requests creation of the Fund ¾ Requests termination of the Fund ¾ Constructs Portfolio upon delegation ¾ If designated as market maker, market making responsibilities.
Duties of the Distributors
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Sells the Fund shares (offer and sale) Redeems the Fund shares Delivers the share certificates Pays dividends and termination proceeds Maintains books and records, makes them available to the shareholders and gives public notices Other duties provided by the laws and decrees and the trust deed
Duties and Responsibilities
If the Fund is terminated per the trust deed, the distributor/Authorized Participant notifies individual shareholders of the cause and date of termination, method of payment of proceeds and other important matters, as set forth in the trust deed.
After the dividends and proceeds are transferred from the distributor/Authorized Participant, the distributor/Authorized responsible for payment to the beneficiaries.
The distributor/Authorized Participant must promptly pay the shareholders the dividends or proceeds transferred from the trustee, provided that if it becomes difficult to make the distribution as of the end of the trust term because of delay in the sale of the securities comprising the trust fund assets, distribution may be made after the delay is resolved.
The distributor/Authorized Participant bears joint liability for damages with the asset manger and the trustee, if the distributor/Authorized Participant is found accountable.
Prohibited Sales Activities
The distributor/Authorized Participant must formulate rules for its distribution activities (“Distribution Rules”), which include prohibition of the following activities, and report the Distribution Rules and any amendment thereto to the Financial Supervisory Service.
¾ Guarantee of principal and returns ¾ Receipt of compensation for distribution from an investor (other than fees
directly related with distribution)) ¾ Use of information gained in connection with distribution activities for its own