Investment Fund Regulation and Libyan Central Bank Governor's Resolution No. (17) of 2013 on the Formation of an Investment Fund Control Committee.
Clyde & Co reports the publication of the Investment Fund Regulation and its complementary Resolution No. 17 of 2013, from the Governor of the Libyan Central Bank.
This new Regulation aims at encouraging and organising the formation of new Investment Funds in Libya. It outlines the criteria necessary for offering investment instruments, the management of funds, protection of the fund owners' rights and the need for transparency and disclosure relating to the Funds.
The Regulation outlines:
- The requirements to be fulfilled in order to create an Investment Fund.
- The minimum capital requirements for the formation of an Investment Fund (LYD 25 million).
- Use of the funds' assets, marketing, trading and licensing requirements.
- The legal relationship between the Investor, Investment Manager, Portfolio Manager, Investment Trustee, Board of Directors and the Libyan Stock Market.
- It is envisaged that the Investment Funds will be particularly useful in the field of Real Estate Funds.
- Subscription will be available to both Libyan and non-Libyan nationals alike.
Finally, the complementary Resolution No 17 of 2013 establishes an "Investment Fund Control Committee" which is responsible for regulation and the undertaking of the main functions of the Libyan Stock Market in relation to Investment Funds.
Together this legislation is very progressive and although the above is an outline only, subject to restrictions and conditions, it goes a long way in developing the role of the Central Bank and the Libyan Stock Market, moving power away from the Ministry of Economy.
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