One of the Most Favourable Environment for the Investment Funds’ Activities is being Created in Lithuania

Date

2018 02 23

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Today the Ministry of Finance submitted for public consultation the draft laws the purpose of which is to improve conditions for the Investment Funds’ activities in Lithuania.

“A new package of draft laws has been developed, which will abolish current excess restrictions for the Investment Funds. When drafting proposals, good practices of other EU Member States were taken into consideration. We hope that this will create the most favourable environment in the European Union and will stimulate the Investment Funds’ activities in Lithuania”, said the Minister of Finance Vilius Šapoka.

In 2017 the Ministry of Finance together with the Bank of Lithuania carried out a regulatory review of collective investment undertakings (hereinafter – CIUs). On that basis, appropriate draft laws have been prepared. This is one of the measures for ensuring the development of alternative financing sources under the Government Programme Implementation Plan.

The draft laws propose to simplify the processes for licensing and authorisation for the CIU managers as well as to create the possibility of marketing the units or shares of foreign alternative investment funds (AIFs) to non-professional investors in Lithuania and to set the requirements for such marketing.

Draft laws as well expand the list of entities which are eligible to act as custodians and depositories, and set the requirements for such entities. It is also foreseen to set more flexible regulation of closed-ended investment firms. Additionally the laws will set out the legal framework for loan originating funds.