The Capital Market Commission today forwarded to the Ministry of Finance the Draft Law on Open-Ended Investment Funds with Public Offering.
“The proposed law is the result of collaboration between the Commission and the Croatian Financial Services Supervisory Agency (HANFA). The proposed law aims to establish an adequate regulatory and supervisory framework for the activities of management companies and open-ended investment funds with public offerings in line with EU legal provisions, specifically Chapter 9 – Financial Services,” the statement said.
By adopting the proposed law, they explained, conditions would be created for improving the regulatory framework for the operation of open-ended investment funds with public offerings, licensing new open-ended investment funds with public offerings, and introducing additional measures and control mechanisms in the operation of investment fund management companies.
The Commission stated that the adoption of this legal solution would lead to continuous improvement of regulations related to investor protection in the capital market, promoting greater competition, and separating legal regulations from alternative investment funds.
“It is important to note that the high standards and good solutions from the current regulatory framework are maintained,” the Commission said.
They mentioned that they expect this law to have a direct positive impact on the country’s financial stability, providing citizens with access to new and diverse investment opportunities.
“The implementation of this law will not only provide better conditions for investment and savings for all citizens of Montenegro but will also encourage the development of the capital market, thereby increasing the transparency, security, and efficiency of investment processes,” the statement said.
The Law on Open-Ended Investment Funds with Public Offering is a key element in the broader context of Montenegro’s economic strategy, aimed at creating a favorable investment environment, attracting foreign investments, and stimulating domestic investments.
“Access to new, diversified investment opportunities allows citizens to actively participate in the capitalization of their savings, thereby improving personal financial security and contributing to overall economic stability and growth,” the Commission said.
The importance of this law for citizens is also reflected in providing mechanisms for investor protection, a fundamental aspect in building trust in the financial system. By introducing clear regulations and control mechanisms, citizens will have greater confidence in the investment process, which is crucial for long-term financial security and prosperity.
“The promotion of competition in the capital market, which this law encourages, will not only provide better conditions and more choices for investors but will also stimulate innovation and improvement of services offered in the market. This will further strengthen Montenegro’s position as an attractive investment destination for both domestic and foreign investors, paving the way for new business opportunities and job creation,” the statement said.
The Capital Market Commission added that, with the draft law, they have fulfilled their promise to citizens and lawmakers, demonstrating their commitment to transparency, innovation, and progress.
“Considering the significance of this law for the economic development of Montenegro, we call on relevant ministries to recognize its importance and contribute to its swift adoption, thereby collectively taking a significant step towards a prosperous future for all citizens of Montenegro,” the statement concluded.
