ArmInfo. All non-public funds in Armenia will be subject to the requirements of the Central Bank. At the session of the National Assembly of the Republic of Armenia on January 21, amendments to the law "On Investment Funds" and a package of related laws are being discussed in the second and final reading.
According to Deputy Chairman of the Central Bank of the Republic of Armenia Armen Nurbekyan, no new proposals were received by the second reading from either the NA deputies or the government of the republic. The Deputy Chairman of the Central Bank noted that the current 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, this 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 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.
With the adoption of the package, a definition of an exchange-traded fund (ETF) will also 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.
