The Parliament of FBiH has adopted amendments to the Law on Securities Markets as well as to the Law on Investment Funds in the Federation of Bosnia and Herzegovina (FBiH). The amendments will come into force on 13 April 2017.
Amendments to the Law on Securities Markets
The amendments introduce new conditions for approval and circumstances under which the Securities Commission will refuse to issue approval for legal entities and natural persons to acquire or increase their qualified share (10%, 20%, 30% or 50%) in capital of professional intermediaries or the Stock Exchange.
Furthermore, the amendments introduce new provisions according to which the Securities Commission issues approvals for the appointment of a director of the professional intermediary and licenses for brokers, investment managers and investment advisors.
The mentioned conditions are mainly related to Anti-Money Laundering/Combating the Financing of Terrorism controls.
Amendments to the Law on Investment Funds
Conditions that potential shareholders and members of the Management Board and Supervisory Board of fund management companies must fulfill to acquire approval from the Securities Commission have been updated.
The Amendments also introduce obligation for investors which intend to acquire shares or increase their share in capital of fund management company over 20%, 30% or 50% to obtain approval from the Securities Commission.
Another update is that appointment of directors of open-end investment funds must be approved by the Securities Commission.
Impact on investors: Amendments to the Law on Securities Market and Law on Investment Funds will enter into force on 13 April 2017.