ArmInfo. All non-public funds in Armenia will be subject to the requirements of the Central Bank. At its meeting on January 13, the Committee on Financial, Credit and Budgetary Affairs of the National Assembly of the Republic of Armenia issued a positive opinion on the amendments to the Law on Investment Funds and a package of related laws submitted by the Government of the Republic of Armenia in the second reading. As Deputy Chairman of the Central Bank of the Republic of Armenia Hovhannes Khachatryan noted in his speech, the law on investment funds was adopted several years ago, in which the regulation of issues related to non-public funds was presented very superficially. Nevertheless, the previously adopted law played a positive role. Currently, there are 56 active non-public funds in the republic with a total asset volume of 135 billion drams. In this regard, there was a need to streamline their activities.
The new package proposes to extend the provisions of the Law on Investment Funds to non-public funds, defining the concept of a fund, its status, the procedure for calculating the net asset value, placement and redemption of fund shares. The Central Bank will be able to apply its instruments to non-public funds and their management companies in the event of a violation of the requirements established by law.
The Central Bank will also have the right to establish additional requirements for non-public funds and their managers by adopting regulatory legal acts. In addition, with the adoption of the package, a definition of an exchange-traded fund (ETF) will be given and its features will be determined, the shares of which will be traded on the stock exchange. This, according to the authors of the presented documents, will allow issuing ETF shares in the Republic of Armenia.
