Serbia launches public consultation on draft law for open-ended investment funds

Serbia’s Ministry of Finance has launched a public consultation on a new draft law for open-ended investment funds, underscoring a regulatory push to bring the domestic market closer to modern European standards. For investors and asset managers alike, the initiative is aimed at strengthening the legal and supervisory framework around collective investment vehicles—an area that remains less developed than in many EU markets.

Consultation timeline and who can respond

The public debate on the Draft Law on Open-Ended Investment Funds with Public Offering will run until May 25, 2026. The ministry is inviting feedback from financial institutions, investors and the broader professional community.

A framework covering funds, managers and custodians

The draft law is designed as a comprehensive rulebook for one of the most important segments of the financial system: collective investment vehicles. It addresses how open-ended funds are established, organised and managed, including the operations of asset management companies. It also sets out the responsibilities of depositary institutions tasked with safeguarding fund assets.

Stronger supervision through clearer Securities Commission powers

Beyond operational rules for funds and managers, the proposal strengthens Serbia’s supervisory architecture. It defines the competencies of the Securities Commission, including oversight of fund operations, management companies and custodians—reinforcing regulatory control across the investment chain.

More transparent rulemaking process

The consultation itself reflects a broader shift toward more transparent policymaking. Authorities have opened multiple channels for submitting proposals and comments, accepting both electronic and written submissions. A formal report is set to be published after the consultation closes.

Capital market development goals—and implications for cross-border credibility

In structural terms, the draft law is part of a longer-term effort to deepen Serbia’s capital markets. Open-ended investment funds—typically aligned with UCITS structures in the European Union—are described as central to mobilising household savings, diversifying investment options and improving liquidity in domestic financial markets.

The ministry’s move comes against a backdrop in which Serbia’s investment fund sector has historically been relatively underdeveloped compared with EU peers, with bank deposits continuing to dominate household financial assets. Updating the legal framework is therefore presented as a prerequisite for shifting capital toward market-based instruments as demand grows for diversified products.

The proposal also carries potential implications for cross-border capital flows. By aligning structures with EU-compatible approaches, Serbian funds could become more credible to foreign investors and support greater regional integration in Southeast Europe—where financial markets remain fragmented.

What changes mean for investors and asset managers

From an investor standpoint, the draft introduces clearer rules around governance, asset protection and operational transparency—elements that are central to building trust in collective investment vehicles. For asset managers, it provides a more structured regulatory environment that could support product innovation and expansion.

Ultimately, what emerges from the consultation process is not only a technical legislative update but an indication of intent: moving toward a more diversified financial system in which capital markets gradually complement banking. The impact will depend on implementation—how quickly new rules translate into higher assets under management, greater investor participation and improved market liquidity.