FIRST REGULATION THAT DEVELOPS INVESTMENTFUNDS ACT HAS BEEN APROVED.

After the adoption of the Investment Funds Act (Ley de Fondos de Inversión) in 2014; the Salvadoran Stock Exchange reported on the adoption of the first rules for the application of the law. These rules will help to speed up the process for the creation of Investment Funds in the country. The funds are expected to raise investment capital from small investors, to channel them into productive and infrastructure projects.

Rolando Duarte, president of the Salvadorian Stock Exchange said their expectation is that in the first three years of application of the law, there will be at least 300,000 investors with money in such funds, adding up about USD$ 1,000 Million for investment.

The companies that are responsible for managing investment funds are the investment managers. There are currently three companies in the process of approval of their operation. They are expected to begin operations later this year.  Interested parties in investing through these funds may start with amounts of USD$ 500. The law has also established an exemption from Income Tax on profits derived from these funds during the first five years.

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