Asset Management Company
An asset management company (AMC) invests the resources of business firms in various financial instruments such as securities, bonds, stocks, certificates, bills, and others. The investments are done to achieve specific financial objectives. The asset management company has a diversified portfolio of investment options, which companies can leverage to park their money securely with the prospects of better returns.
An AMC can have direct consultations with investors regarding investments, including the price of securities, investment in securities, and the purchase and sale of securities in foreign currency transactions. The company can manage clients and advise them regarding pension schemes, investment portfolios and funds allocated for securities transactions based on their financial objectives and risk appetite.
A wide range of clients
The client list of an asset management company can be diverse and range from individuals, families and business firms to governments, financial intermediaries and companies managing insurance and pensions. By diversifying the investment of resources across a number of assets or financial instruments, an AMC can reduce the risk factor.
Unlimited growth opportunities
The stock market in Georgia and its booming economy present unlimited opportunities for the asset management companies. The healthy growth rate achieved by the country over the years (confirmed by the World Bank and IMF) and projections for a better economic performance going forward have created a positive environment for the asset management companies to set up shop. As an experienced investment consulting company based in Georgia, we can help you get a licence to set up an asset management company.
Activities Allowed under Issued Licence:
Georgia has laid down a set of rules for any Asset Management Company to operate in the country. The company is authorised to administer the activities as mentioned below:
- Applying investment policy and a pension system plan based on defined guidelines.
- Handling investment funds and portfolios, including issuance, redemption of securities and sale (units) of an investment commission, rendering minimal undertaking/scheme asset possession facilities and accomplish other processes defined by the supervisory specialist.
- Getting and conveying the client’s orders in connection with sanctuaries, effecting dealings in securities for clients’ accounts, with clients’ funds.
- Storing and keeping the accounts of securities and/or investment resources, keeping a record of nominees (together with investment unit holders), delivering extracts from the record and allocating returns.
- Holding clients’ investment securities and/or funds, providing protect, guardianship and applicant facilities for securities.
- Ordering and carrying out the dispersal of the issuer’s securities;
- Co-operating with the market members in following the handling of possessions and applying for an investment policy, as well as protect the benefits of the undertaking in its relation with third persons.
- Submitting reports on the company’s activities to an organizer, supervisory authority or a unit holder of the undertaking/scheme, in the form established and within the timeframes determined by the supervisory authority.
Requirements to Get a License for an asset management company
- Passport of the directors and shareholders, name of the company, residential addresses of the directors and shareholders, and email of the company.
- Produce CV and a certificate of no criminal record.
- Certificates of Educational Qualification and Experience.
- No taxes apply if you reinvest the money.
- The paid up capital should be paid before submitting the application.
- If you get a special status, you are exempted from paying corporate tax on incomes originating out of Georgia.
- Submit the auditing accounting report quarterly to the National Bank and the monthly accounting report to the tax service.