Investment Company / Fund Manager licence (povolení k činnosti investiční společnosti) (Czech Republic)

At a glance

What it lets you do

• Managing alternative investment funds
• Managing UCITS funds
• Portfolio management

• Managing alternative investment funds. Performing portfolio management and risk management for funds that are not UCITS, such as hedge, private equity and real estate funds.
• Managing UCITS funds. Managing undertakings for collective investment in transferable securities, the EU's retail fund format.
• Portfolio management. Managing client portfolios that include financial instruments on a discretionary, client-by-client basis.

Where it is valid

Cost

How long it takes

Statutory: 6 months from receipt of a complete application². Observed: not published. The statutory clock usually starts only when the regulator treats the application as complete, and pauses while it waits for answers to its questions.

Buying a company that already holds it

Prior notification with an objection period. Under Section 18 of the Payment Systems Act (Act No. 370/2017 Coll.), any person or persons acting in concert intending to acquire, dispose of, or increase a qualifying holding in a payment institution or electronic money institution reaching or exceeding 20%, 30%, or 50% of voting rights or capital, or become the controlling person, must notify the CNB in advance via electronic filing. The CNB assesses the trustworthiness and suitability of the proposed acquirer within a statutory 60-working-day window and may initiate proceedings to issue a formal objection (vyslovení nesouhlasu). In the absence of an objection or upon affirmative notification, the acquisition may proceed. Acquiring qualifying holdings in breach of notification or objection leads to statutory forfeiture of voting rights. In contrast, for banks and investment firms under Act No. 21/1992 Coll. and Act No. 256/2004 Coll., prior approval (předchozí souhlas) is required subject to a CZK 20,000 fee under Item 66 of Act No. 634/2004 Coll. Small-scale providers (PPSMR/VEPMR) are exempt from change-of-control clearance.⁷

Laws behind it

• European Crowdfunding Service Providers Regulation: Regulation (EU) 2020/1503
• Alternative Investment Fund Managers Directive: Directive 2011/61/EU