Banking and Finance sector is one of the most developed sections of the economy of Armenia. The key players of the industry are the banks, followed by insurance companies and credit organisations. During recent years, the investment funds and companies providing investment services have also been relatively active. Capital markets and investment funds continue remaining in the development phase, despite the initiatives undertaken by the Government of Armenia back in the early 2010s, including the legislative amendments and practical steps aimed at fostering the development thereof (Inaugural Public issuance of Eurobonds by the Government and later by a bank, the establishment of mandatory pension funds, amendments in securitisation regulations and others). Armenian companies as well are not particularly active in the foreign capital markets. 

The sector is fully controlled by the Central Bank of Armenia, which among other things is responsible for the development of respective regulations governing the industry (including relevant mandatory normative standards)․ 

The financial sector, along with corporate law, is one of the main areas of practice of Concern Dialog law firm. Concern Dialog’s experience in the financial and banking sector includes the provision of consultancy and legal opinions to the companies of this sector, including International and Foreign Financial companies. Such consultancy relates to the various specific aspects, as well as day to day consultancy on their ongoing activities. Furthermore, we represent the interests of the companies of this sector before administrative bodies and during litigation, including before the Central Bank of Armenia within administrative processes and appealing the decisions, actions and inactions of the latter in the administrative court. Finally, since 2010 the firm provides comprehensive specialised services to the participants of the sector related to the collection of unsecured non-performing loans (debt collection - the firm offers this service under Delex law firm trademark).

Concern Dialog law firm offers the following services in this sector: 

  • drafting and issuing of legal opinions and provision of consultancy services regarding the regulations applicable to participants of financial and banking industries, security market, investment funds and to participants of the financial market. The said service also includes consultancy on relations with the regulator, as well as on legal capacity applicable to participants while concluding specific transactions and legal implications related to the conclusion of such transactions,
  • consultancy on compliance with applicable regulations in the transactions concluded between resident and non-resident companies, which can also include the provision of a thorough legal opinion, as requested by the client,
  • provision of legal opinions on cross-border financial transactions, including on possibilities of enforcement of judicial acts and arbitral awards rendered on the validity of such transactions or in the cases when a dispute has arisen from the said transactions,
  • provision of legal opinions on licensing/registration of companies in the financial and banking sector, preparation of necessary documents, and representation within the processes (including judicial processes) related to the issuance, suspension and termination of such licenses,
  • challenging of administrative acts of the regulator (Central Bank) both administratively and judicially,
  • provision of legal consultancy related to acquisition  or termination of participation in the financial organisation and full legal support in the related processes,
  • representation within the relationships with the regulator - Central bank of RA, including participation in administrative procedures established by the latter,
  • consultancy on the legal implications of the requirements determined by the regulator, as well as legal support with the preparation of documents to be submitted to the Central Bank,
  • outsourcing and full legal consultancy of the day to day activities of the financial and banking companies,
  • consultancy on contracts concluded within the sector, particularly drafting and review of loan, exchange, insurance, pledge agreements aimed at ensuring compliance with applicable legislation, anti-money laundering regulations and other regulatory requirements applicable to the transactions,
  • supporting the negotiations with individuals and legal entities (borrowers, pledgors, guarantors) in non-standard cases, developing and implementation of available solutions, including restructuring (confiscation of property, re-financing mechanisms, development of insolvency and sanation mechanisms),
  • consultancy within the processes of issuance or acquisition of securities, as well as the drafting of necessary documents, particularly:
    • legal support within the issuance of bonds and shares,
    • assistance with the development and analysis of prospectus and other essential documents,
    • due diligence check and analysis of the corporate-law documents, provision of respective legal opinions,
  • legal support with drafting and review of agreements specific to the sector,
  • legal assistance with M&A transactions, acquisition of shares and other types of investment in the financial and banking sector,
  • assistance related to the management of debt portfolio, including the collection of substantial loans/credits and establishment of control mechanisms over large main creditors,
  • representing legal entities and individuals before the Central Depository and account operators in the processes related to securities, including related security accounts and custody thereof,
  • support with and implementation of the process of securitisation of assets,
  • consultancy and ongoing legal support to companies providing investment services and investment funds managers.