Implementation of European Union legislation

On 5 October 2020, a bill was submitted to the government amending certain laws in  connection with  the implementation of European Union legislation se  the Capital Markets Union  („ the CMU Amendment “). The amendment to the Investment Companies and Investment Funds Act is expected to take effect on 2 August 2020 (Part 11, Article XII, of the CMU Amendment). The main changes of note include:

• the reintroduction of multiple representatives of an external IF manager (Section 9(2) of the Investment Companies and Investment Funds Act),
• a definition of the pre-marketing of investments, thus setting uniform pre-marketing conditions for EU alternative fund managers (Sections 297a to 297c of the Investment Companies and Investment Funds Act),
• clarification of the procedure for notifying changes to and terminating the marketing of the units or shares of alternative investment funds in the cross-border marketing of investments at a manager whose home country is a Member State(Section 314 et seq. of the Investment Companies and Investment Funds Act))
• the setting of conditions for the appointment of a liquidator if a managed IF is wound up with liquidation (Section 314 et seq. of the Investment Companies and Investment Funds Act), and
• the introduction of the rule that if an external IF does not have a manager for more than three months, it is wound up with liquidation and a liquidator is appointed by the CNB (Section 361(3) of the Investment Companies and Investment Funds Act).