Management Company Licence

Who grants the licence?

Czech National Bank

Who needs the licence?

A licence for the activity of an management company (MC) is required for:

  1. the management of investment funds or foreign investment funds;
  2. carrying out the administration of investment funds or foreign investment funds;
  3. providing the investment services specified in the the Management Companies and Investment Funds.                                                                  

The activities of an investment company therefore involve the management and administration of investment funds, in practice these are most commonly qualified investor funds (QIF) in the form of SICAV.

There are several different categories of investment companies, with the complexity of the licencing process at the Czech National Bank stemming from these categories:

  • MC without authorisation to exceed the threshold, meaning that the value of the assets in the managed funds may not exceed an amount equivalent to EUR 100 million, or EUR 500 million if the assets are not acquired with the use of leverage and the disbursement of assets to investors cannot occur earlier than 5 years after their collection, and MC with authorisation to exceed the threshold.
  • MC authorised to manage standard and special funds and MC authorised to manage only qualified investor funds, etc.

What will we do for you?

  • we will assign a personal project manager to you, who will guide you through the entire licencing process
  • we will compile an application and all attachments
  • we will create complete internal regulations and procedures, including risk management
  • we will compile a business plan and trading forecast in the form of financial statements and a strategy for the development of the activity
  • we will set up the appropriate organisation for the internal operation
  • we will set up internal management and control systems
  • we will compile rules for risk management, including a catalogue of risks and their assessment
  • we will compile measures to combat money-laundering (AML/CFT)
  • we will ensure that compliance, internal auditing, and any reporting to the Czech National Bank is achieved
  • once you have your licence, we will be ready to regularly help you with regulation, internal auditing, or dealing with the Czech National Bank and other regulatory bodies
  • turnkey compilation of all documents takes around 2 months

What will we need from you to do all this?

  • information about the types of investment funds you want to manage
  • basic information about the focus and manner of providing services
  • information about senior management
  • information about persons having a qualifying holding and the ultimate owner
  • proof of the transparent origin of the initial (registered) capital, the size of which must be EUR 50,000 or EUR 125,000 according to the scope of services of the MC

Who have we already arranged a licence for?

We have provided services to AVANT investment company, TESLA investment company, PROSPERITA investment company, and more. You will find more references here.

How much will it cost?

The price depends on the complexity and scope of the licence. You will receive a detailed written offer from us following a telephone or personal consultation.

Do you want the licence?