Obligations of Alternative Funds (Mini-funds) after Registration on the Czech National Bank’s List

After successful registration of the alternative fund (mini-fund) in accordance with Section 15 of Act no. 240/2013 Coll., on Investment Companies and Investment Funds, as amended (the “ZISIF”) on the list of Alternative Fund Managers maintained by the Czech National Bank (the “CNB”), a new obligation arises, and each Alternative Fund Manager should be prepare for this in advance.

SDAT information system of the CNB

First of all, after registering on the CNB’s list, Alternative Fund Managers should apply for registration in the CNB’s SDAT information system and obtain a suitable electronic certificate for signing the submitted reports. We recommend not postponing this obligation until the time of submitting a report. It is our experience that a delay in fulfilling obligations is completely unnecessarily.

Regular reporting to the CNB

Alternative Fund Managers will use the access data obtained in the performance of its annual reporting obligations. Alternative Fund Managers are obliged to submit the following reports: OFZ (CNB) 36-01 “Report of the manager within the meaning of Article 3(3) of the AIFMD” and OFZ (CNB) 37-01 “Report on the managed fund within the meaning of Article 3(3) of the AIFMD” (the “reports”). Alternative Fund Managers are obliged to submit these reports by 30 January of each year at the latest. Reports can be submitted only through the CNB SDAT information system.

Notification of changes to the CNB

Alternative Fund Managers are also required to notify the CNB of any changes.

AML

In addition to the reporting obligations, since 1 January 2021, Alternative Fund Managers are required to adhere to the provisions of the Act no. 253/2008 Coll., on Certain Measures against Money Laundering and Terrorist Financing, as amended (the “AML”). In accordance with Section 21 of the AML, Alternative Fund Managers are obliged to draw up a System of Internal Principles and submit it to the CNB within 60 days of becoming a liable entity. Failure to comply with this obligation may be sanctioned with a fine of up to CZK 1,000,000.

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Other obligations of Alternative Fund Managers include the obligation to provide information that the Alternative Fund Manager is not an entity falling within the CNB’s supervisory activities and not to address the public with an offer to invest in the alternative fund.

Adherence to limits for the value of assets under management

In order to comply with the set limits for the management of assets comparable to investment funds, Alternative Funds Managers are obliged to establish internal procedures for regular monitoring of the value of the assets under management and compliance with the set limits.

If you are unsure about fulfilling any of the obligations imposed on Alternative Fund Managers, please contact us at info@stuchlikova.com or call +420 222 767 393 , and we will be happy to help you with these obligations. Stuchlíková & Partners has extensive experience in preparing reports for the CNB and fulfilling the obligations arising from the AML.

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