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LAW OF THE REPUBLIC OF BELARUS

of July 17, 2017 No. 52-Z

About investment funds

(as amended of the Law of the Republic of Belarus of 14.10.2022 No. 213-Z)

Accepted by the House of Representatives on June 21, 2017

It is approved by Council of the Republic on June 26, 2017

Chapter 1. General provisions

Article 1. Main terms and their determinations

1. For the purposes of this Law the following main terms and their determinations are applied:

issue of investment shares – set of the actions of management company of mutual investment fund directed to emergence of the property right or other corporeal right to investment shares at their first owners;

activities of specialized depositary of investment fund (further if other is not established, – specialized depositary) – rendering according to the legislation of services in accounting of property of the joint-stock investment fund intended for investment, property of mutual investment fund, to its storage if other does not follow from nature of property and requirements of the legislation, and also control of the order the property of joint-stock investment fund intended for investment, property of mutual investment fund;

property of investment fund – set of the money and other property belonging to joint-stock investment fund (property of joint-stock investment fund) or money and other property constituting mutual investment fund (property of mutual investment fund);

the investment declaration – the document determining the strategy of investment of joint-stock investment fund or management company of mutual investment fund;

investment share – the personalized security issued in paperless form, confirming the owner's rights to share in the right of common property to property of mutual investment fund, receipt of the money in case of the termination of existence of this fund from realization of its property which remained after satisfaction of written requirements of creditors which shall be satisfied at the expense of property of this fund, and also after payment of the expenses connected with the termination of its existence, in proportion to quantity belonging to this owner of investment shares, other rights provided by this Law;

investment fund – the open joint stock company performing accumulation and investment of the money deposited by shareholders of this society as payment of the shares emitted by it, and also other property received as a result of such investment (joint-stock investment fund), or the set of the money received as payment of investment shares, and also other property acquired as a result of investment of money (mutual investment fund) belonging on the right of common ownership to owners of investment shares and being in trust management of management company of mutual investment fund;

the address of investment shares – making of the civil transactions or other legally significant actions attracting transition of the rights to investment shares from their first or each subsequent owner to other person;

repayment of investment shares – withdrawal of investment shares from the address in connection with the termination of existence of mutual investment fund, the redemption of investment shares by the management company of mutual investment fund which issued these investment shares or exchange of these investment shares for investment shares of other mutual investment fund;

rules of mutual investment fund – the document which particular purposes, establishes conditions and procedure for forming, existence and termination of existence of mutual investment fund;

placement of investment shares – stage of issue of investment shares in the course of which the civil transactions or other legally significant actions directed to emergence of the property right or other corporeal right to the investment shares at their first owners attracting transfer of investment shares to their first owners are made. The specified transactions are not the transactions made in the course of the address of investment shares;

estimated cost of investment shares – the cost calculated as the relation of net assets value of mutual investment fund to total quantity of the investment shares of this fund placed at the time of the termination of the present working day;

the register of owners of investment shares – the data set about owners of investment shares created according to the procedure, established by the republican state body performing state regulation of the security market based on the depositary agreement with management company of investment fund (further if other is not established, – management company), and also in other cases, stipulated by the legislation about securities;

specialized depositary – the economic society or the unitary enterprise created according to the legislation and which underwent the state accreditation on implementation of activities of specialized depositary;

authorized body – the state body performing state regulation of the security market to which according to this Law powers on state regulation of conditions and procedure for forming, existence and the termination of existence of mutual investment funds, issues (issue), the address and repayment of securities of investment funds, activities of joint-stock investment funds, management companies, specialized depositaries, and also for control in this sphere are assigned;

management company – the trustee property of investment fund – the economic society created according to the legislation and which underwent the state accreditation on implementation of activities of management company;

financial instruments – securities and other objects of the civil laws in which money of investment fund which list is determined by authorized body are invested;

net assets of investment fund – difference between property value of investment fund and the obligations which are subject to execution at the expense of property of this fund.

2. For the purposes of this Law the term "nonresident" matters, determined by subitem 1.10 of Item 1 of article 1 of the Law of the Republic of Belarus of July 22, 2003 No. 226-Z "About currency control and currency exchange control".

Article 2. Scope of this Law

1. Operation of this Law extends to the relations connected with forming, existence and the termination of existence of mutual investment funds, activities of joint-stock investment funds, their reorganization and liquidation, issue (issue), the address and repayment of securities of investment funds, activities of management companies, specialized depositaries (further - the relations in the field of investment funds).

2. Operation of this Law does not extend to the relations connected with creation for the purpose of investing activities of other funds if they do not answer the signs of joint-stock investment funds or mutual investment funds provided by this Law.

3. Operation of this Law does not extend to the relations arising in case of the property trust management performed by others except management companies, persons whose activities are regulated by other acts of the legislation.

Article 3. Legal regulation of the relations in the field of investment funds

1. The relations in the field of investment funds are governed by the legislation on investment funds, and also international treaties of the Republic of Belarus.

2. The legislation on investment funds is based on the Constitution of the Republic of Belarus and consists of this Law and other acts of the legislation.

3. The legislation on securities and on economic societies extends to investment funds taking into account the features provided by this Law.

4. If the international treaty of the Republic of Belarus establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

Chapter 2. State regulation of the relations in the field of investment funds, control in this sphere

Article 4. Powers of Council of Ministers of the Republic of Belarus on state regulation of the relations in the field of investment funds

Council of Ministers of the Republic of Belarus according to this Law:

establishes order of registration of rules of mutual investment funds, and also the changes and (or) amendments made to them;

establishes procedure for passing, and also procedure and the bases for suspension, renewal and the termination of the state accreditation on implementation of activities of management company, the state accreditation on implementation of activities of specialized depositary;

establishes procedure for state registration of investment shares;

performs other powers on state regulation of the relations in the field of investment funds according to the Constitution of the Republic of Belarus, this Law, other laws and acts of the President of the Republic of Belarus.

Article 5. Powers of authorized body on state regulation of the relations in the field of investment funds, and also on control in this sphere

1. Authorized body when implementing state regulation of the relations in the field of investment funds:

establishes requirements to information and the scope of information which shall contain in rules of mutual investment fund;

establishes the minimum size of property of mutual investment fund and the minimum size of net assets of joint-stock investment fund, management company, specialized depositary;

establishes conditions and procedure for the conclusion of the property trust management agreement of mutual investment fund with other management company in case of impossibility of performance management company of mutual investment fund of the property trust management agreement of mutual investment fund or refusal of management company of mutual investment fund of execution of such agreement if such opportunity is provided by rules of mutual investment fund, and also procedure for cession of property of mutual investment fund in connection with the conclusion of the specified agreement;

keeps the register of investment funds, establishes procedure for its maintaining, and also the scope of information of this register, placed on the single portal of the financial market and the official site of authorized body on the global computer Internet (further – the official site of authorized body), and procedure for their placement;

registers rules of mutual investment funds, and also the changes and (or) amendments made to them;

carries out the state accreditation of legal entities on implementation of activities of management company, on implementation of activities of specialized depositary;

establishes qualification requirements, including vocational, to officials of joint-stock investment fund, management company, specialized depositary (to person who performs functions of sole executive body or heads collegiate executive body (further if other is not established, – the head), to his deputies, the chief accountant, members of collegiate executive body) and the members of their Boards of Directors (supervisory boards), the head of the organization or the individual entrepreneur rendering services in conducting financial accounting and creation of the accounting and (or) financial reporting;

establishes accounting treatment for property of the joint-stock investment fund intended for investment, property of mutual investment fund, its storage, accounting of the rights to the specified property, control of the order by such property;

establishes obligatory details of investment share;

establishes accounting treatment for investment shares, the rights to them, encumbrances (restrictions) of these rights in depositary system of the Republic of Belarus, forming of the register of owners of investment shares;

establishes requirements to amount and procedure for disclosure of information on investment fund taking into account provisions of this Law;

establishes amount and procedure for submission by the joint-stock investment fund of the report on results of property management intended for investment, procedure for representation by joint-stock investment fund according to this Law of notifications and other information, method of the notification of authorized body on convocation of general meeting of shareholders of investment fund;

establishes amount and procedure for submission by management company of the report on results of property management of investment fund, being in its trust management, requirements to reports on the end of forming of mutual investment fund, about the termination of existence of mutual investment fund, procedure for their representation, procedure for representation by management company according to this Law of notifications and other information;

establishes procedure for representation by person who acquired the right to share in authorized fund (share) in the amount of ten and more percent of joint-stock investment fund, management company, specialized depositary (the property right to property (the status of the founder) of specialized depositary – the unitary enterprise), notifications on receipt of such right;

performs state registration of investment shares, establishes procedure for assignment of the state registration number to investment shares, and also procedure for issue, the address, redemption, exchange and repayment of investment shares, suspensions of placement, the redemption and exchange of investment shares;

makes explanations concerning application of this Law;

performs other powers provided by this Law and other acts of the legislation.

2. The authorized body exercises control of issue (issue), the address and repayment of securities of investment funds, and also of activities of joint-stock investment funds, management companies, specialized depositaries.

Authorized body in case of control, this Item specified in part one:

takes out in the procedure for the instruction established by it about suspension of placement, the redemption, exchange of investment shares in cases of violation of requirements of this Law, other acts of the legislation on securities or of economic societies or impossibility of performance of contractual commitments by management company of mutual investment fund, specialized depositary, auditing organization (the auditor performing activities as the individual entrepreneur (further – the auditor – the individual entrepreneur)), the contractor of assessment who is the legal entity, or the appraiser – the individual entrepreneur, other persons if as a result of such violation or such impossibility the rights and legitimate interests of owners of investment shares are violated;

prohibits to management company of mutual investment fund to stop placement, the redemption, exchange of investment shares, to resume placement, the redemption, exchange of investment shares before elimination of the circumstances which served as the reason of such suspension;

has the right:

direct the representative for presence at general meeting of shareholders of joint-stock investment fund, general meeting of owners of investment shares of closed-end investment fund;

demand from joint-stock investment fund and management company of mutual investment fund of submission of the documents confirming reliability of disclosed information about investment fund;

make other actions according to this Law and other acts of the legislation.

Chapter 3. General provisions about investment funds

Article 6. Types and types of investment funds

1. In the Republic of Belarus the following types of investment funds can be created:

joint-stock investment fund;

mutual investment fund.

2. The mutual investment fund can be two types: opened and closed.

The mutual investment fund which grants to the owner of its investment share the right to demand from management company of open mutual investment fund of the redemption of this share in cases, on conditions and according to the procedure, established according to this Law, but at least once a month (except for the case provided by part three of this Item), the right is recognized open in case of the termination of existence of this fund of part of the money which remained after satisfaction of written requirements of creditors which shall be satisfied at the expense of property of this fund, and also after payment of the expenses connected with the termination of its existence, in proportion to quantity belonging to this owner of investment shares. By rules of open mutual investment fund the right to demand from management company of open mutual investment fund of the redemption of this share in any working day, except for the case provided by part three of this Item can be granted to the owner of its investment share.

The open mutual investment fund which grants to the owner of its investment share the right to demand from management company of open mutual investment fund of the redemption of this share in cases, on conditions and according to the procedure, established according to this Law, but at least once a year is recognized interval.

The mutual investment fund which grants to the owner of its investment share the participation right in general meeting of owners of investment shares of this fund, the right to dividends on investment share on conditions and according to the procedure, established by rules of this fund (but at least once a year provided that as a result of dividend payout the property value of closed-end investment fund will not become less minimum size of property of this fund), the right in case of the termination of existence of this fund of part of the money which remained after satisfaction of written requirements of creditors which shall be satisfied at the expense of property of this fund, and also after payment of the expenses connected with the termination of its existence, in proportion to quantity belonging to this owner of investment shares is recognized closed. The owner of investment shares of closed-end investment fund has no right to demand from management company of mutual investment fund of the redemption of the investment shares belonging to it if other is not established by rules of this fund, and also except for case, stipulated in Item the 8th article 27 of this Law.

Article 7. Name of joint-stock investment fund, name of mutual investment fund

1. The name of joint-stock investment fund shall contain the words "joint-stock investment fund".

2. The name of mutual investment fund shall contain words "mutual investment fund", specifying on whether it is open (open interval) or closed, the name of management company of mutual investment fund. Use of abbreviations of OPIF, OIPIF and "closed-end investment fund" instead of words respectively "open mutual investment fund", "open interval mutual investment fund" and "closed-end investment fund" is allowed.

The name of mutual investment fund which management company are bank, the non-bank credit and financial organization or "Development Bank of the Republic of Belarus" open joint stock company shall contain the words "management company of mutual investment fund".

3. In the name of joint-stock investment fund, the name of mutual investment fund it is forbidden to use the words "guaranteed" or "insured" in the specified or changed type, including as part of the compound word. The name of joint-stock investment fund, the name of mutual investment fund shall not contain the words allowing to imply guaranteeing the income.

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