The Armenian government has proposed amendments to the "Law on Investment Funds" and several related bills to strengthen regulation of non-public investment funds. The proposal was reviewed at an extraordinary session of the Standing Committee on Financial-Credit and Budgetary Affairs of the National Assembly of Armenia on October 11.
Currently, the majority of non-public funds and their managers operate outside the oversight of the Central Bank of Armenia (CBA), limiting proper regulatory supervision. Any individual, including private persons, can manage a non-public fund without a special permit or license, and no specific requirements are imposed on the managers.
Presenting the proposed amendments, Deputy Chairman of the Central Bank of Armenia Armen Nurbekyan noted that the legislative package would establish a registration procedure for funds, define their types, outline the responsibilities of fund managers, regulate the separation of assets, and provide grounds for liquidation and cessation of activities.
According to the authors of the bill, the adoption of these amendments will create a fair and equal regulatory environment in the investment fund sector, clarify the procedures for the creation, operation, and liquidation of non-public funds, and establish conditions for the formation and management of such funds in line with international best practices.
The proposed amendments also aim to introduce necessary minimum safeguards to protect investors’ interests, while allowing flexibility in fund management, considering the characteristics of different fund types. At the same time, the supervisory authority will be empowered to exercise effective control over non-public funds and their managers, mitigating both existing and potential risks.
The legislative package received positive feedback and has been recommended for inclusion in the agenda of the upcoming sessions of the National Assembly.
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