Fund Distribution Alert 2022-18

The Directive (EU) 2019/1160 has entered into force in Czechia with the Act No 96/2022 modifying several acts, including 240/2013 Coll., on management companies and investment funds (AMCIF).

Below are the main changes in terms of cross-border fund distribution, for both AIFs and UCITS, which go further than the Directive being transposed:

• Facilities to retail investors must be conducted in Czech or in a language specified by decree. A local entity is no longer required but facilities must be covered by the fund itself, a bank, a foreign bank with a subsidiary in Czechia or a regulated securities dealer or person pursuant to Section 24(5) or Section 28(1) of the Czech Act regulating business on the capital market.
• Information published regarding the termination of marketing must be in Czech or Slovak language. Investors remaining in the fund post-denotification are to be provided with fund documents and information through a remote means of communication in the Czech or Slovak language.
• Lastly, regulatory notification and maintenance fees (for UCITS, AIFs intended to professional investors, and AIFs intended to retail investors) are introduced as follows:
   

The Act No 96/2022 can be accessed here (only available in Czech).

Updated national provisions governing the marketing requirements for UCITS in Czechia are available in English and can be accessed in full here.

Updated national provisions governing the marketing requirements for Alternative Investment Funds in Czechia are available in English and can be accessed in full here. 

Further information on the new regulatory fees and charges for both Alternative Investment Funds and UCITS is available in English and can be accessed in full here.

Please feel free to contact us should you require any additional information.

Partner
+352 22 51 51 7892
said.fihri@kpmg.lu

Director
+352 22 51 51 7271
stephanie.zedda@kpmg.lu