Armenian CB to establish control over nonpublic funds 

ArmInfo. In order to solve some existing problems in the sphere of regulation of non-public  investment funds, the Armenian government proposed to make amendments and additions to the Law "On Investment Funds" and a number of related draft laws. The proposal was approved on October 11 at a  meeting of the RA National Assembly Committee on Financial, Credit and Budgetary Issues.

In his speech, Deputy Chairman of the Central Bank of the Republic of  Armenia Armen Nurbekyan noted that currently, most non-public funds  and their managers are outside the control of the Central Bank of the  Republic of Armenia, as a result of which the Central Bank is unable  to exercise due control over the funds and their managers. A  non-public fund can be managed by any person, including an  individual, without any authority or license. At the same time, no  requirements are imposed on the managers. In this regard, as  Nurbekyan emphasized, the amendments propose to clarify the procedure  for registering funds, their types of activities, the responsibility  of the fund manager, the division of assets, as well as the grounds  for liquidation and termination of activities.

As a result of the adoption of the projects, a fair regulatory  environment will be formed in the sphere of investment funds. The  activities of managers of non-public funds will be determined in  accordance with the best international practices. It is also  recommended to introduce the necessary minimum conditions for  protecting the interests of investors, providing sufficient  flexibility in the management of funds of the system and taking into  account the features of various types of funds. At the same time, the  supervisory authority represented by the Central Bank will be able to  exercise effective control over non-public funds and their managers,  using its tools, reducing existing and potential risks. With the  adoption of regulatory legal acts, additional requirements will be  established for non-public funds and their managers in order to  protect the interests of investors, ensure financial stability and  contain various other risks. All this will contribute to the creation  of the necessary prerequisites for the development of the investment  fund sector.