The Montenegro Capital Market Authority published comments by its president, Željko Drinčić, saying the regulatory framework for voluntary pension funds is ready, but that the launch of funds will depend on market interest and potential investors. He said the authority and the Ministry of Finance have prepared amendments to the Law on Voluntary Pension Funds aligned with European Union directives, intended to support development of a third-pillar pension system. Montenegro currently has no active voluntary pension funds after earlier funds were liquidated in 2019 due to weak demand and an underdeveloped market. The prepared amendments envisage a stronger supervisory role for the authority, more modern risk-management mechanisms, and greater transparency requirements for funds and management companies, and would allow European Union-based management companies to manage Montenegrin voluntary pension funds subject to prescribed conditions. Drinčić added that legislation alone is unlikely to deliver rapid market development without additional incentives such as tax relief, higher financial literacy, and greater employer participation in voluntary pension saving.
Montenegro Capital Market Authority 2025-12-18
Montenegro Capital Market Authority says EU-aligned legal amendments are ready to enable voluntary pension funds
The Montenegro Capital Market Authority announced that the regulatory framework for voluntary pension funds is ready, with amendments to the Law on Voluntary Pension Funds aligned with EU directives. These amendments aim to enhance supervision, risk management, and transparency, allowing EU-based management companies to operate in Montenegro. However, market development depends on additional incentives like tax relief and increased financial literacy.