The proposed Law on Alternative Investment Funds, currently in parliamentary procedure, aims to establish a framework that addresses potential risks arising from the activities of companies managing these funds.
The law also ensures effective monitoring of these risks by the Securities and Exchange Commission, the supervisory authority.
“The new Law on Alternative Investment Funds aims to provide a coordinated and stringent regulatory and supervisory framework for the activities of all companies managing alternative investment funds and the funds themselves operating in Montenegro,” the explanatory statement of the bill, proposed by the government, reads.
In this regard, no management company in Montenegro should be allowed to manage or trade alternative investment funds with professional investors unless it holds a valid operating license under this law.
As part of Montenegro’s process of joining the European Union (EU), it is necessary to align the management of alternative investment funds and the functioning of these funds with EU legal standards, specifically the relevant directives.
This law is being adopted to align certain issues under Negotiation Chapter 9 – Financial Services, with EU legal regulations.