Legal approach to investment – Interview

Successful investment activity is based not only on financial literacy but also on legal knowledge. Our interviewee, Nijat Shamilly, the Director and Chief Compliance Officer of Unicapital Investment Company, discussed mportant nuances that every investor should consider.

What mechanisms are available in our country to protect the rights of investors?

In this field, the main focus is on protecting investors' activities, resolving disputes, and creating a favorable investment environment. The rights of investors are enshrined in the Constitution of the Republic of Azerbaijan. In our country, any unjustified, discriminatory treatment of investors and their investments, or other similar unpleasant occurrences, are prohibited. The rights of investors are also protected by national courts. In addition, a number of international investment dispute resolution mechanisms are accepted in our country, and when necessary, international arbitration options are considered.

It should also be noted that state authorities conduct regular monitoring to protect the rights of investors.

What should investors pay attention to when signing a contract with brokers?

The key points to focus on are as follows:

• License check – it is important to verify whether the broker is licensed by the Central Bank of the Republic of Azerbaijan.
• Broker reliability – it is necessary to gather information about the broker's past activities, reputation, and experience in the market.
• Attention to the details of the contract – before signing the contract, the investor should carefully review each clause, clarify any issues that raise questions, and should not hesitate to request amendments by justifying any disagreements.

How do companies ensure the protection of investors' personal data?

In our country, the protection of personal data is regulated by the "Personal Data Law" and international standards. Companies can only collect investors' personal data for purposes defined by law and with their consent. The Privacy Policy, which defines the rules for the collection, processing, and protection of personal data, must be developed by each company and comply with legislative requirements.

What advice would you give to investors taking their first steps in this field from a legal perspective?

New investors should approach with caution and conduct thorough research before making any decisions. When entering into a contract for services, reviewing the contract and requesting clarification of any vague clauses will help reduce and eliminate potential risks for investors.

I would also like to add that the legal aspect of investments is an integral part of Unicapital's operations. In our company, all processes are based on legislation that guarantees the reliability and security of investments. For example, since 2022, we have published all contract terms publicly on our official website, thereby ensuring transparency. Additionally, in accordance with legal requirements, our company has established the position of coordinator for consumer inquiries. All of these measures are aimed at ensuring our customers' accessibility to our services and facilitating communication for the prompt resolution of any issues that concern them. Additionally, within the framework of adapting to the requirements of new corporate governance standards, we are in the final stages of making amendments to the Charter of our Company.