Investors in insolvent investment companies in Azerbaijan will soon be insured against the risk of losing their funds and financial instruments, the Central Bank of Azerbaijan (CBA) told Report.
The CBA noted that it was reflected in a draft amendment to the “Insurance of Deposits” law, specifically addressing the insurance of investments in investment companies.
The proposed changes include provisions related to the scope of insured investments, the establishment of a compensation fund, acceptance of investment companies as members, payment of membership fees to the fund, and the provision of compensations.
The draft amendment is currently under discussion with relevant state institutions and is expected to be finalized soon.
Additionally, the investment insurance mechanism will be jointly developed by the CBA and Azerbaijan’s Deposit Insurance Fund (DIF), which will also oversee its implementation. As a result of these changes, the name of the DIF is anticipated to be modified.