Obligations of the alternative fund manager under § 15 of the ZISIF

Obligations after the establishment of an alternative fund

Once the Czech National Bank (CNB) registers your alternative fund in the relevant register, you may begin your intended activity – managing assets in a manner comparable to the management of an investment fund within the meaning of § 15 of the ZISIF.

However, registration of the alternative fund in the CNB list is not the end – on the contrary, it marks the beginning of a deadline for fulfilling further obligations. What are these?

1. AML obligations – within 60 days of registration in the CNB list, you must prepare and submit to the Czech National Bank an internal policies and risk assessment system (you are not required to prepare this in writing if, in areas subject to the AML Act, you do not employ other persons or have any other persons involved in any capacity other than a basic employment relationship). You must also report a contact person to the Financial Analytical Unit (FAU), designate a so-called authorized person, and provide AML training to cooperating persons and employees.

2. KID Document (Key Information Document) – this document (maximum of three A4 pages) must be provided to end investors, summarizing key information (KID) about the specific investment product.

3. Regular reporting to the CNB – this is an information obligation for all alternative funds to report certain specific information to the CNB in a prescribed manner about their investment activities, to be submitted annually by January 31 at the latest.

4. Updating the investment agreement and investment strategy – have you changed your investment agreement or your investment strategy? Note that although you are not subject to CNB supervision, these changes must still be properly reported to the CNB.

5. Obligation to state that the alternative fund is not subject to CNB supervision – the fact that your alternative fund’s activities are not supervised by the CNB must be clearly stated on all business documents (contracts, orders), on your website, and in your business communications.

6. Obligation upon termination of activity – upon ceasing operations, you must request removal from the CNB list.

Where to next?

• What is an alternative investment fund?
• Turnkey establishment of an alternative fund
• CNB reporting
• AML obligations
• Preparation of the KID under the PRIIPs Regulation
• Investment agreement
• Investment strategy
• News