Asset Management Company
Asset management firms administer the investment money of their clients in order to achieve a financial objective. They have specific guidelines of the investment pool. Same can be identify in the different form of various financial instruments like pension funds, retirement funds, hedge funds or simple mutual funds. There are other various kind of financial vehicles are available in market same include derivatives, options, futures, equity scrip of securities. Asset managers of firm, depending on the clients’ objectives and risk appetite, would manage the funds and ensure that the financial goals are achieved. Asset management companies offer their services not only to households, business firms and governments, but also to the other categories of financial intermediaries, same also includes pension funds and insurance companies. By pooling the savings from a group of investors, asset managers can reduce the risk by helping individuals diversify their financial wealth amongst many more assets.
Activities Allowed under Issued Licence:
The state of Georgia has laid down the set of rules for the Asset Management Company in Georgia. An asset management company is authorised to run the show under those defined rules only. An asset management company is authorised to run under-mentioned activities:
- Applying investment policy, a pension system plan on the base of the defined guidelines;
- Handling investment monetary fund and portfolios, including issuance, redemption of securities and sale (units) of a communal investment commission, rendering minimal undertaking/scheme asset possession facilities and accomplish other processes defined by the procedures of the supervisory specialist;
- Getting and conveying client’s orders in connection with sanctuaries, effecting dealings in securities for clients’ accounts, with clients’ funds;
- Storing and keeping 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 reservoir and other market members in the procedure of handling the undertaking possessions and applying investment policy, as well as protect the benefits of the undertaking in its relations with third persons;
- Submitting occasionally reports on the company activity 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.
- Minimum capital 50,000 Gel to get registered under Joint Stock Company (JSC) or Limited Liability Company (LLC);
- Provide respective certificate from companies to the National Bank of Georgia (NBG) and management should present certificate of non-conviction;
- Information on the significant shareholder;
- Proof of license fee paid;
- Experience of the members of the administrative board and their education is mandatory.
- Certificate of incorporation, articles of Association the Joint Stock Company (JSC) or Limited Liability Company (LLC);
- Criminal record details of every member of the board;
- Information of the shareholder’s identity;
- The certificates or CV’s of the members of the board;
- Payment proof of the license;
- Budget Required.