Belarus' first bank management fund to be opened at Belinvestbank

It will be the bank management fund Capital at Belinvestbank. The relevant note on registration of its investment declaration and regulations was included by the National Bank of the Republic of Belarus on 24 September 2010 into the list of bank management funds in line with NBRB Resolution No 397 of 23 September 2010.

According to the National Bank, Belinvestbank should make available the information on the registration of the investment declaration and regulations of the BMF Capital in the National Bank as well as other information concerning the activity of the fund at its website or publish it in the national publication media not later than ten days after its official registration.

A reminder, the functioning of the bank management funds in Belarus is governed by Decree No 131 of 3 March 2010 “On testing a bank management fund in the Republic of Belarus”. Such funds mean trust management enabling the bank to unite cash assets and/or securities of the individual and corporate clients on the basis of shared ownership and their further use for acquisition of financial assets provided in the investment declaration and regulations of the funds. 

Bank management funds based on banks can use all the advantages of the banking infrastructure (highly-qualified experts, depositary, branch network, common banking audit and inside control), what reduces management costs. It, therefore, provides trustees with a chance for higher income which is not subject to taxation according to Decree No 131.

As far as the bank management fund is a new instrument in attracting funds of individual and corporate clients, Decree No 131 envisages its testing at two banks, Belinvestbank and Priorbank, in order to examine in detail all positive and negative sides.

According to the NBRB, the need for the fund management funds in Belarus is driven by a widespread development of new efficient mechanisms expanding the banking potential in attracting and depositing cash assets. Individual and corporate clients will get access to an alternative of the traditional instruments of the financial market.

According to Belarusian portal