Czech Republic

1. EEA AIFM

Non-Czech AIFMs authorised in their EEA home State may exercise passport rights for management of AIFs in the Czech Republic on a services and / or branch basis. To obtain a passport, the EEA AIFM must notify its competent home State authority, which will then send the passport notification to the Czech National Bank (“CNB”). Once the EEA AIFM has received the notification from its competent home State authority, that it has sent the passport notification to the CNB, the EEA AIFM can manage a Czech based AIF and / or offer units in an EEA AIF that it manages in the Czech Republic.

A notification is a sufficient condition for a private placement in relation to the EEA AIF to professional investors in Czech Republic. On the other hand, a private placement to persons other than professional investors is possible under additional conditions that (i) such an investment into an AIF may be offered publicly or (ii) there is a maximum of 20 addressees.

Besides notification, the additional conditions for a public offering to qualified investors are: (i) a manager’s licence under the AIFMD to exceed a decisive limit and (ii) registration with the CNB.

As for a public offering to the EEA AIFM to nonqualified investors, beside the manager’s licence, the notification and the registration with the CNB, it is necessary that (i) the EEA AIF is comparable with a local special fund (i.e.non-UCITS), while the CNB decides in this matter upon an application submitted by the manager, as well as (ii) an establishment of the relevant contact point in the Czech Republic.

2. AIFMs

AIFMs based in Non-EEA jurisdictions wishing to manage or distribute units of the EEA AIF in the Czech Republic will be required to apply for permission by the CNB. Moreover, the EEA AIF other than Czech based AIF needs to be registered with the CNB before the third country AIFMs may start to offer investments in the AIF.

3. Fees

The CNB does not charge an application fee for outward or inward AIFMD passport notifications. The CNB does not currently charge any periodic fees on the regulated activities the EEA AIFM is conducting in the Czech Republic.

However, there is a EUR 190 administrative fee in relation to an application to the CNB for an evaluation of comparability between the foreign AIF and the local special fund.

An application for the license of a third country AIFM in the Czech Republic shall be subject to a fee amounting to CZK 100,000 (approx. EUR 4,000).