2017-07-25
Facilitating investment fund operation: Proposed regulatory changes presented to market participants
The Bank of Lithuania has been reviewing procedures for granting authorisation and activity licences for investment companies and investment funds, as well as taking other measures to develop a more favourable regulatory environment for collective investment undertakings. Regulatory innovations proposed by the Bank of Lithuania were presented to market participants at a meeting held at the Supervision Service of the Bank of Lithuania.
The Bank of Lithuania clarified not only the simpler procedures for granting authorisation and licences but also requirements for informed investors. Taking into account specifics of investment company operation and the generally large number of investors, the present initiative envisages facilitating procedures for taking decisions in these companies. It also proposes to create more opportunities for investment companies and investment funds to distribute their products across Lithuania.
These and other amendments to laws regulating activities of collective investment undertakings are being prepared in accordance with the Bank of Lithuania Action Plan; they will be presented to the Ministry of Finance in H2 2017. The proposed changes were announced at the meeting of the representatives from the Bank of Lithuania Supervision Service with representatives from associations, managers of collective investment undertakings and lawyers. Given the situation in the market, where only a few undertakings carry out assets safekeeping (depository) functions, participants of the meeting also discussed ways of increasing the number of such undertakings.