The Law on Investment Funds (adopted in December 2010 and taken effect in January 2011) (the “Law”) sets out a long awaited[i] regulatory regime for the registration and operation of investment funds and fund managers in Armenia. The Law regulates both public and private funds and basically represents a lighter version of experience of a number of EU member states (e.g. Baltic countries, Luxembourg, etc.) that have implemented UCITS Directive[ii]and AIMF Directive[iii]. Not only the regulatory regime has become appealing, but also (and quite understandably) the taxation regime made available for the funds registered in Armenia.[iv]
Of particular interest for foreign and local fund managers is the regulation of non-public contractual funds. Indeed, the exemption available under the Article 1(2) of the Law as well as a follow up regulatory infrastructure put in place by the regulator (the Central Bank of Armenia) open up tremendous opportunities for the fund managers operating not only in the Eurasian Economic Union space but also outside.