BSEC fines Alliance Capital Asset Tk5 lakh for reporting lapses

The Bangladesh Securities and Exchange Commission (BSEC) has fined Alliance Capital Asset Management Limited (ACAML) Tk5 lakh for repeatedly failing to submit its audited financial statements within the statutory deadlines.

The regulator issued the enforcement order on 27 August 2026, directing the asset manager to deposit the fine through a bank draft or pay order within 30 days.

According to the order, ACAML violated Rule 33(3) of the Securities and Exchange Commission (Mutual Fund) Rules, 2001, which requires asset management companies to submit their audited financial statements within three months of the end of a financial year. The company failed to submit its audited financial statements for the financial year ended 30 June 2023 within the prescribed deadline.

The BSEC also noted that ACAML submitted its audited financial statements for FY22 nearly a month after the statutory deadline, citing the repeated delay as the basis for the enforcement action.

Responding to a show-cause notice and at a personal hearing on 29 June 2026, ACAML Managing Director and CEO Asadul Islam and Head of Research Ashiq Rayhan attributed the non-compliance primarily to a severe operational freeze at the company.

They said an ongoing BSEC inquiry had led to the suspension of transactions in two funds managed by the company, MTB Unit Fund and Alliance Sandhani Life Unit Fund.

The company argued that its financial reporting was linked to the performance of these funds, preventing it from completing its corporate audit.

ACAML also cited extensive operational disruptions caused by the freeze, including its inability to pay taxes to the National Board of Revenue, hold annual general meetings, pay regulatory fees, maintain the required workforce, pay office rent and collect management fees needed to meet basic operating expenses.

The asset manager maintained that the reporting failures were unintentional and requested the commission to take a lenient view.

The BSEC, however, rejected the explanation, finding the non-compliance deliberate and detrimental to the development and discipline of the capital market.

The regulator said failure to meet statutory reporting obligations constitutes a punishable offence under Section 18 of the Bangladesh Securities and Exchange Commission Act, 1993, and warranted a monetary penalty to safeguard market transparency and investor interests.