New Law on Investment Funds

Recent changes of EU regulations governing the activities of collective investment institutions, the requirement to incorporate these regulations in view of the upcoming accession, combined with the rapidly growing market demand for new legal vehicles were the major reasons to commence works on the draft of a new Polish investment funds law. Under the Investment Funds Bill (the "Bill"), now being debated by the Parliament, Polish investment institutions threatened by competition from Western European and American "investment behemoths" able to provide clients with solutions currently not available under Polish law, will be provided with new types and structures of investment funds, such as, inter alia, securitization funds, fund of funds, funds with separated sub-funds having different investment policies with respect to possible assets, portfolio funds whose investment portfolios can be based on stock exchange index. It should be noted that the Bill simultaneously sets forth the rules regarding non-public assets funds, which, in the near future, should serve as the efficient legal framework for the private equity and venture capital sector, as well as for commercial investment in real estates. Clear regulations governing the organization and investment policy of such funds will permit to solicit funds from Polish financial institutions, such as pension funds and insurance companies, for investment involving a higher market risk, but simultaneously offering higher than average yield. For information please contact Lejb Fogelman or Jarosław Grzesiak at Dewey Ballantine Grzesiak LP. Tel +48 22 690 6100; fax +48 22 690 6222; www.deweyballantine.com