Regarding Amendment of the Regulation for Investment Companies and Banking, Financial and Investment Consultation Establishments or Companies

Kindly be advised that the Central Bank Board of Directors, in its meeting on 30/4/2000, has taken the following resolution:

The Board approved carrying out the following amendments regarding the Regulation for Investment Companies and Banking, Financial and Investment Consultation Establishments or Companies:

1. Article (1 ). Item 1.1

j) Portfolio Manager
This shall mean the natural person (or a group of natural persons) who holds a degree in the said field, subject to approval of the Central Bank on the basis of a specific test. This person shall be responsible for selecting the actual investments in favour of the customer on behalf of a company licensed to conduct such activity.

k) Securitv Analvst
This shall mean the natural person (or a group of natural persons) who holds a degree in the said field, subject to approval of the Central Bank on the basis of a specific test. This person shall be responsible for securities and investments related information, which shall be utilized to recommend the purchase or sale of the securities of industrial sectors or those of specific companies. This person, however, shall offer such service on behalf of a company licensed to conduct such activity.

l) Securities Trader
This shall mean the person who holds a degree in the field of investments, subject to the approval of the Central Bank. This person shall be responsible for the execution of the purchase or sale of certain shares or bonds, as per instructions of portfolio manager.

n) Licence
This shall mean the licence issued by the Central Bank, allowing a juridical person to conduct financial investment activities or allowing a natural or juridical person to carry out banking, financial and investment consultations business. The licence requires any natural person to be holder of a degree in this field, subject to Central Bank approval on the basis of a specific test.

The following term (Parties) shall be added to the definition of terms in item (1.1 ):

p) Parties
This shall mean the financial establishments and others with which the company deals in investing funds of investment accounts, investment portfolios as well as funds of investment funds.

2. Article (2), Item 2.1

Investment companies may conduct one or more of the following principal businesses:

a) Opening investment accounts and managing portfolios on behalf of others, whether individuals or companies. This, however, requires that funds of investment accounts and funds of managed portfolios be maintained in accounts with a bank licensed to operate in the country, or with a major bank outside the country or with an investment company licensed to operate in the country.

b) Subscribing in the capitals of companies and debt instruments issued by major companies

c) Preparing feasibility studies for projects and marketing of allotments and shares of stock companies and debt instruments issued by major companies.

d) Establishing and/or managing investment trust funds.

e) Acting as a trustee for funds entrusted to it by a trustor to manage on behalf of a beneficiary.

f) Participating in extending and/or managing joint loans.

g) Studying and marketing company mergers and ownerships.

h) Establishing and/or managing other investment funds. This activity requires special approval from the Central Bank on a case to case basis.

3. Addition of a New Article - Article (3)

The company is not allowed to deal with unknown or small parties or with parties in countries which apply restrictions on transfers and capital or which are high risk countries. The trustee (i.e. the bank with which funds of investment accounts or investment portfolios or monies of funds are deposited) should verify the matter directly.

4. Article (4), Item 3.2

An investment company may obtain others' monies to invest on their behalf. The company, for this purpose, may open investment accounts and manage portfolios and funds in accordance with. Article (2) items 1.a and 1.b; it may as well take monies as loans.

The investment company is strictly prohibited from taking monies as deposits in whichever form.