New regulations governing investment services by investment companies approved

20-09-2021

20 September 2021, Baku: The Central Bank takes ongoing measures to realize the goals set in the strategic plan on capital market development. As the next measure, the Management Board of the Central Bank approved the ‘Regulation on maintaining investment services (operations) by investment companies’ and the ‘Regulation on margin trading’ with its decision of 31.08.2021 that took effect on 16.09.2021.

According to the changes made to the ‘Regulation on maintaining investment services (operations) by investment companies’, customers now can sign e-contracts and open bank accounts (depo and margin accounts) remotely. The Regulation allows joint offer of an underwriting service on placement of securities by more than one investment companies. This change will enable to combine underwriting opportunities of investment companies and increase total issue amount. In addition, the requirements on individual investors’ portfolio management, investment consultations and other investment services have been tailored to international practice.

According to the changes made to the Regulation on margin trading, credit limits regarding professional and institutional investors’ margin trading with CFDs have been reviewed, requirements on professional investors improved, credit limits on ordinary investors differentiated under best practices taking into account volatility of CFDs. The Regulation also determines requirements on IT regarding investment companies on FX operations, protection of the rights of investors and risk awareness mechanisms.

To see the regulations please go to the following links:

http://www.e-qanun.az/framework/48233

http://www.e-qanun.az/framework/48234