Canada    FinTech Guide    Chapter 2    Serbia


2. Asset and Portfolio Management
Serbia  Serbia

The laws of Republic of Serbia are only familiar with the portfolio management, whereas the asset management is not the subject of regulation. Securities Commission (“SEC”) is the relevant regulator for this aspect of business.



Legal Affairs


The relevant Serbian regulation for this activity is the Capital Market Law, which recognizes portfolio management as one of investment services, i.e. managing financial instruments in the client’s name. More precisely, this means managing individual portfolios in accordance with mandates given by the client, in a special contract concluded with the client, where such portfolios include one or more financial instruments. This investment service, portfolio management, is performed by qualified investment companies, i.e. portfolio managers engaged with these investment companies. In order to become qualified, the investment companies should fulfil certain conditions, such as obtain license issued by the SEC and satisfy minimum capital requirements, in particular EUR 125,000, etc.

A contract for portfolio management of financial instruments may be concluded between the qualified investment company for the performance of portfolio management services and a client that is not an investment fund. This type of contracts contains: (i) a description of the investment policy of the investment company; (ii) any other limitations on the discretions given to the investment company; (iii) fee and commission amounts; and (iv) the right of the client to revoke the contract at any time, subject to settlement of any obligations then pending between the investment company and the client.

Also, the Capital Market Law establishes the obligation of investment companies to keep records in relation to portfolio management, such are: (i) buy/sell indicator, financial instrument identification code, unit price and quantity notation; (ii) nature of the order if other than buy or sell; and (iii) type of order, etc.



Economic Conditions


Although a term “portfolio managers” is present in Serbian legislation for a while, it is still considered to be a somewhat new business activity. The portfolio managers are natural persons licensed by SEC, and registered before the Registry of Portfolio Managers held by SEC. Currently the Register of Portfolio Managers contains 130 members.

On this link the NBS provides a list of all registered payment institutions in Serbia: https://www.nbs.rs/internet/english/58/registar_pi.html.

 



Contributing Authors

Karanovic & Nikolic

Marko Ketler
Belgrade, Serbia

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019