The Securities Commission has issued a warning of the website https://serbianbuildfund.com/. The website invites investors to put in considerable amounts of money into real estate investment projects, an activity which requires prior fulfillment of conditions and an authorization for an investment fund management company by the Securities Commission. „Serbian Build Fund“ is promoted as “the first Serbian real estate investment fund, highly regulated and audited by leading companies in the fields of audit and accounting”.
The website compares the “fund” to the registered open-ended investment funds subject to public offering, which operate in accordance with the law and which hold the required Commission authorizations. What is more, the Securities Commission supervision officers have established that the fund is promoted on social networks and discussion websites, such as LinkedIn, Facebook, Instagram and Reddit.
The area of investment funds in the Republic of Serbia is regulated by the Law on open-ended investment funds subject to public offering and the Law on alternative investment funds. For an investment fund to operate in accordance with the law, it is required that it holds a valid authorization issued by the Securities Commission. „Serbian Build Fund“ has not been authorized by the Securities Commission.
In all matters involving the unauthorized provision of activities, the Securities Commission will immediately undertake measures within its competence in order to provide for an organized, efficient, fair and smooth functioning of the capital market. However, this does not mean that investors should not act with due care that a prudent person would use to avoid possible fraud.
The Commission has issued this warning to investors, alerting investors to conduct an in-depth research before any intended investment. Please consult the registers of licensed i.e. authorized entities the Commission maintains at its website and check whether the company in question has the authorization to conduct the activities and services it claims to provide.