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The Government proposes to make amendments and addenda to the law on Investment Funds and in a number of co-draft laws for solving some existing problems in the sphere of regulating non-public investments. The proposal was debated during the extraordinary sitting of the RA NA Standing Committee on Financial-Credit and Budgetary Affairs convened on October 11.

At present, the great part of the non-public funds and their governors are out of control of the RA Central Bank (CB), as a result of which, the CB has no opportunity to carry out proper control towards the funds and governors of funds. A non-public fund can be managed by anyone, including the physical, without any permission or license. Accordingly, any claim towards the governors is not defined.

Presenting the proposing amendments, the Deputy Governor of the RA Central Bank Armen Nurbekyan noted that the process of the fund registration, the Fund Governor’s duties, the separation of the assets, as well as the bases of dissolution and termination will be defined.

As a result of the adoption of the drafts a fair and equal regulation field will be formed in the investment funds, creation of non-public funds, the processes of further activity and dissolution will be specified, the conditions of the creation and the activity of the non-public fund governors in compliance with the international best experience will be defined. It is also proposed to introduce the necessary minimum conditions, giving sufficient flexibility in the governance of funds and taking into consideration the peculiarities of different kinds. At the same time, the controlling body will have an opportunity to carry out effective control by the use of its toolset towards non-public funds and their governors, reducing the existing and possible risks. Additional requirements through adopting normative legal acts to protect the investors’ interests, providing financial stability and to mitigate various other risks. All this will promote the creation of the preconditions necessary for the development of the investment funds.

The package of the draft laws was endorsed. It was proposed to include the legislative package in the draft of the agenda of the NA regular sittings.