Alternative Investment Funds (AIF) Law ready for promulgation

UniCredit Bank S.A.
Alternative Investment Funds (AIF) Law ready for promulgation
Fri, 29/11/2019

On its session held on November 27, 2019, The Romanian Chamber of Deputies adopted a law project regulating the activity of the alternative investment funds. The Chamber of Deputies is a decisional body of the Romanian Parliament and the bill will be sent to the President of Romania for promulgation.

The main goal of the legislation is to regulate the set-up, the authorization and the operation of alternative investment funds (AIF) in Romania. The law aims to adapt the local legislation in the field of other collective investment funds (Non-UCITS) to the current European practice, by requiring the national regulation and classification framework of a new category of collective investment funds, AIF.   

One of the most important provisions of the new legislation is to eliminate the 5% ownership cap in the listed financial investment companies (SIFs). There are five SIF investment funds in Romania: SIF Muntenia, SIF Moldova, SIF Oltenia, SIF Banat Crisana and SIF Transilvania, all listed on the Bucharest Stock Exchange.

Impact on investors: The bill regulating Alternative Investment Funds (AIF) in Romania will eliminate 5% ownership cap in the SIFs. The bill has been adopted by the Chamber of Deputies and will be sent for promulgation to the President of Romania.