Application for activity licence
In order to operate as a management company, a public limited company shall hold a relevant activity licence. Activity licences shall be issued and revoked by the Financial Supervision Authority. Activity licences shall be issued for an unspecified term. Activity licences are not transferable, and the acquisition or use thereof by other persons is prohibited.
A management company shall apply for an activity licence for the management of a fund or an activity licence for the management of a fund together with the right to provide one or several of the following services:
1. Management of a securities portfolio
2. Safekeeping of units of shares of a fund for a client
3. Management of a mandatory pension fund
4. Management of a voluntary pension fund.
In order to apply for an activity licence, the members of the management board of a management company being founded shall submit to the Financial Supervision Authority a written application and the following documents and information specified in the Investment Funds Act:
1. The articles of association and, in the case of an operating company, also the resolution of the general meeting on amendment of the articles of association and the amended text of the articles of association
2. Upon foundation of a company, a notarially certified copy of the foundation agreement and a document certifying the resources for payment of the share capital
3. The business plan which complies with the requirements provided for in the Investment Funds Act
4. The opening balance sheet of the applicant and an overview of revenue and expenditure or, in the case of an operating company, the balance sheet and income statement as at the end of the month prior to submission of the application, and the last three annual reports if they exist
5. The internal rules or a draft thereof and, for the provision of the service provided for in the Investment Funds Act, also the internal rules provided for in the Securities Market Act or a draft thereof
6. Information on the members of the management board and supervisory board of the applicant which includes each person's given name and surname, personal identification code or date of birth in the absence of a personal identification code, residence, educational background, a complete list of places of employment and positions and, in the case of members of the management board, a description of the area of responsibility of the specified persons, and documents in proof of their trustworthiness and conformity to the requirements of the Investment Funds Act which the applicant deems necessary to submit
7. Information on the auditor and internal auditor of the applicant, including their name, residence or seat, personal identification code or, in the absence of the identification code, the date of birth or registry code
8. The given name and surname, personal identification code or date of birth in the absence of a personal identification code, residence and, educational background of the fund manager, a complete list of places of employment and positions held during the last three years and a copy of the contract entered into by the fund manager or a consent for entry into the contract under which the manager undertakes to commence performance of the functions of a fund manager after issue of the activity licence to the applicant
9. A list of the shareholders of the applicant which sets out the name and the personal identification code or registry code of each shareholder, or the date of birth in the absence of a personal identification code or registry code, and information on the number of shares and votes to be acquired or owned by each shareholder
10. Information on persons who directly or indirectly hold more than 10 per cent of the votes represented by shares of the applicant
11. Information on companies in which the participation of the applicant, of a member of its management board or supervisory board, or of the fund manager of the applicant is greater than 20 per cent; this information shall also include the amount of share capital, a list of the areas of activity and the percentage of participation of the above-mentioned persons
12. In the case of an operating company, documents certifying the amount of net own funds together with the auditor’s report
13. The accounting policies and procedures or the draft thereof;
14. If the applicant applies for activity licence together with the right to provide the service specified in the Investment Funds Act § 9 (1) 2) or 3), a document by which applicant assumes the obligation to pay the single contribution to the Investor Protection Sectoral Fund.
The Financial Supervision Authority may demand the submission of additional information and documents if it is not convinced on the basis of the submitted information and documents as to whether the applicant for an activity licence has adequate facilities for the management of a fund, or whether it meets the requirements for management companies prescribed by an Act or legislation issued on the basis thereof or if other circumstances relating to the applicant need to be verified.