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Funds and asset management in Albania is a growing area within the financial services sector, regulated to ensure the integrity of investments, investor protection, and the stability of the financial market. The legal framework encompasses the creation, operation, and regulation of collective investment undertakings (CIUs), investment funds, asset management companies, and the roles of their custodians and administrators. Albania has adopted laws and regulations that align increasingly with European Union standards, as part of its wider economic reforms and aspirations for integration. Both domestic and foreign investors operate within this framework, benefitting from a legal system that aims to provide transparency, efficiency, and security in investment management.
Navigating the field of funds and asset management can be complex, especially for those new to investment vehicles or unfamiliar with Albanian regulations. Common situations where legal assistance is valuable include:
A lawyer specializing in this field can provide guidance that helps investors and asset managers avoid costly mistakes, ensure compliance, and make informed decisions.
The primary legal framework for funds and asset management in Albania is defined by Law no. 56/2020 “On collective investment undertakings”, along with decisions and guidance issued by the Albanian Financial Supervisory Authority (AFSA). Key aspects include:
A collective investment undertaking (CIU) is a fund that pools money from multiple investors to invest in a diversified portfolio of assets. In Albania, CIUs are regulated to ensure transparency, security, and investor protection.
The Albanian Financial Supervisory Authority (AFSA) regulates and supervises all funds, asset management companies, and related entities operating in the country.
Albania recognizes several types of investment funds, including open-ended funds, closed-ended funds, and special funds such as real estate investment funds or venture capital funds.
Establishing a fund requires licensing from AFSA, meeting capital requirements, submitting detailed documentation (such as the prospectus and management rules), and appointing qualified custodians and auditors.
Investor rights are protected through rules on transparency, mandatory disclosures, independent custody of assets, regulatory oversight, and the ability to lodge complaints with AFSA or courts.
Yes, foreign funds can operate in Albania subject to meeting certain registration and licensing requirements with AFSA and complying with relevant regulatory standards.
Taxation depends on the fund structure, type of income generated, and the residency of investors. Legal advice is important as tax rules may change and vary according to specific circumstances.
Yes, individuals can invest in public investment funds as long as they meet the minimum investment requirements set by each fund and complete necessary KYC checks.
Breach of duties can lead to regulatory sanctions by AFSA, including fines, suspension, or revocation of licenses. Investors may also have the right to seek compensation for losses incurred.
Asset managers must provide periodic reports to AFSA and investors, including detailed statements on fund performance, asset allocations, charges, and compliance with investment policies.
To better understand or receive guidance on funds and asset management in Albania, you may consider the following:
If you require legal assistance in the field of funds and asset management in Albania, consider these steps:
Engaging an experienced legal professional will help you navigate the complex regulatory environment while safeguarding your interests in Albania’s dynamic funds and asset management sector.
