---
title: "Investment Management Agreements"
url: "https://legal.ge/en/service/banking-and-finance-law-en/investment-management-agreements-en"
field: "Banking & Finance Law"
description: "Investment management agreements and National Bank supervision in Georgia: licensing, sanctions, depositary. Legal assistance from Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-15"
publisher: "legal.ge"
---

# Investment Management Agreements

> Source: legal.ge, https://legal.ge/en/service/banking-and-finance-law-en/investment-management-agreements-en

## The Supervisory Mandate of the National Bank

Investment management agreements in Georgia exist within a special regulatory environment: under the norms of the Law of Georgia on Investment Funds concerning the supervision of an investment fund and an asset management company, the National Bank of Georgia is charged with overseeing both. This means that the performance of a management agreement concluded with an investor is closely connected with the continuous monitoring of the state regulator. Under the same norm the National Bank is authorized to supervise the activity of an investment fund, to carry out the authorization or registration of a fund founded in Georgia, to recognize a foreign investment fund, and also to revoke the authorization, registration or recognition of a fund. Supervision also includes the inspection and regulation of the fund, the issuance of written instructions to it, and the imposition of additional requirements, restrictions and sanctions. Consequently, the relationships defined by a management agreement always remain under the control of the regulator, and any problem in the performance of the agreement can be escalated through supervisory channels in parallel with contractual remedies.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/banking-and-finance-law-en/investment-management-agreements-en

### Who regulates investment funds in Georgia?

The National Bank of Georgia, which supervises the fund, the asset management company and the specialized depositary under the Law on Investment Funds.

### What can be the ground for a fine?

An investment fund, an asset management company, a specialized depositary and other persons may pay a monetary fine by a decision of the National Bank; the amount is directed to the state budget.

### How does the law protect unit holders?

The National Bank regulates the relationships of the issuance and circulation of units and ensures the detection, prevention and suppression of violations in this sphere.

### Can a temporary administrator be appointed?

Yes. The National Bank determines the rules of liquidation of an investment fund and of an asset management company and of the appointment and exercise of the powers of a temporary administrator.