Management companies consolidate to form Lithuania’s Investment Managers’ Association, which will try to make a contribution to investment development, improving the legal environment for collective investment undertakings (CIU) and instructing the investors.
The founders of Lithuania’s Investment Managers’ Association are nine investment management companies licensed and supervised by Bank of Lithuania: Lewben Investment Management, INVL Asset Management, Orion Asset Management, Synergy finance, Prosperus, Mundus, Dovre Forvaltning, Prudentis and Gerovės valdymas. Taken together these companies administrate 42 various forms of collective investment undertakings registered in Lithuania, the total asset value of which amounts to 374 millions EUR.
Despite the fact that one of the most extensively discussed priorities of the country is the development of the local capital market, even the local managers, due to a better regulation of operation, choose to establish their diverse forms of business either in other Baltic countries or in different jurisdictions where the licenses are not required for their activities. Foreign investors, who are interested in the jurisdiction of Lithuania, are forced to get rid of the idea to invest here and owing to inappropriately implemented directives or considerably large administrative burden prefer other countries for their enterprise. “We seek to contribute to the improvement of the legal framework and transform the status quo,” – claimed Agnė Daukšienė, the chairman of the Lithuania’s Investment Managers’ Association board.
According to A. Daukšienė, the priorities of the association include: alternative investment funds’ (AIF) and investment companies’ legal framework’s improvement and clear regulation, granting the opportunities to distribute abroad the alternative investment funds’ units, which are registered in Lithuania, a transposition of good foreign practices, the implementation of the self-regulation’s principles, the development of the necessary infrastructure for CIU activities and the creation of the appropriate regulation framework to do so.
“It is not surprising that the US, Great Britain or Luxembourg have become the financial centres – these jurisdictions have flexible regulations, which provide the opportunities for the new members to enter a market quite rapidly, also they are characterised by the developed infrastructure as well as a large self-regulation, meaning, the conditions are provided for the members of the market to supervise themselves. Lithuania’s Investment Managers’ Association will try to implement foreign expriences and operating models in Lithuania,” – claimed Agnė Daukšienė.
The members of Lithuania’s Investment Managers’ Association board are: Agnė Daukšienė (Lewben Investment Management), Audrius Matikiūnas (INVL Asset Management), Benas Poderis (Orion Asset Management), Arūnas Čiulada (Synergy finance) and Gediminas Baltakis (Prosperus).
The association will cooperate with other organizations which consolidate the members of a capital market, the law firms, tax and finance consultants.
For further information, please contact:
The Chairman of Lithuania’s Investment Managers’ Association Board
The Board Member of Lewben Investment Management
Ellex commentary: The financial market practice shows, that a formation of associations is highly approved – it is a means to its members to join the powers and represent the mutual interests, and for the institutions of supervision it facilitates the work and the dialogue between the market members. In addition to that, the association which works is one of the advanced market’s features. The market of collective investment has a huge potential, however there are many works to do, in order to transform Lithuania into a friendly jurisdiction for the managers. That is why we hope that the formation of association will help to achieve these goals.