Weekly economic review (15.11- 19.11.2010)
After the law on investment funds entered into force, Azerbaijani President Ilham Aliyev signed a decree to apply the law.
The Cabinet of Ministers was charged with preparing proposals to bring existing legislative acts into conformity with the law on investment funds and to submit them to the president, as well as to prepare and submit a draft of legislative acts determining responsibility for breaking the law.
The Azerbaijani State Securities Committee was instructed to prepare and approve regulations within three months, to implement activities aimed at developing a mechanism for collective investments, to organize investment funds, to promote their activity and to protect investor rights.
Earlier, the Azerbaijani parliament adopted a draft law on investment funds prepared by the state committee. The adoption of the new law is stipulated by the fact that the law on investment funds adopted in 1999 does not meet modern requirements.
The new law promotes the development of the domestic securities market. This will contribute to the process of diversifying the economy and also help to solve other problems.
The experiences of more than 30 countries were studied while developing the bill.
The law will expand market proposals and help investment funds stimulate the emergence of new tools for expanding the volume of operations.
The new law envisages using a number of investment fund innovations. In particular, investment funds in Azerbaijan could be established only in the form of joint stock companies before the new law. The law allows for their creation in the form of joint stock investment funds.