More Favourable Conditions for Investment Funds – Better Potential for Business to Attract Investments

Date

2018 12 20

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Today the Seimas adopted the laws regulating the activities of collective investment undertakings (CIUs) aimed to create more favourable conditions for the activities of the investment funds and to reduce the administrative burden. These changes will contribute to developing more financing alternatives for business and more investment opportunities for investors in our country.

“This package of legislation is a big step forward in creating the most advanced regulatory environment in the European Union for the activities of the investment funds. It eliminates redundant restrictions on investment funds; therefore, clarity and flexibility of regulation is significantly improved by offering new opportunities for investors. We hope that these developments will contribute to the reinforcement of competitiveness of our country and job creation, create better business financing opportunities and will contribute to the sustainable development of the financial sector”, says Minister of Finance Vilius Šapoka.

The package of legislation will simplify the processes for licensing and authorisation for the CIU managers (management companies and investment manager companies), limit the requirements for the list of documents required to be submitted during the licensing process. Also, the opportunities for distribution of units or shares of foreign alternative CIUs to retail investors in Lithuania are created, and for paying for acquired units (shares) of special CIUs by in-kind contribution.

The adopted package of legislation enables greater flexibility for closed-end investment funds (in capital increase, own share buybacks, dividend allocation) and widens the range of entities which are eligible to act as custodians and depositaries.

In developing the package of draft legislation, good practice of other EU Member States was taken into consideration. In 2017 the Ministry of Finance together with the Bank of Lithuania carried out a legal regulatory review of collective investment undertakings and assessed the best regulatory practices in investment funds of the EU countries and market players’ offers.


The package of legislation regulating the activities of CIUs is one of the measures for ensuring the development of alternative financing sources under the Government Programme Implementation Plan.