Amendment to AICIF: What will it bring and what to prepare for?
The Ministry of Finance has prepared an extensive amendment to the Act on Investment Companies and Investment Funds (AICIF)reflecting the EU AIFMD II directive. Most of it is expected to enter into effect on 16 April 2026 but some of its parts as late as 2027. What will the amendment bring and what to prepare for?
- New obligations for fund managers
Managers of open-ended investment funds will need to have at least two liquidity management tools in place, and it will be up to each manager to choose a suitable specific tool from a list. The aim is to increase stability and protect investors.
- Extension of outsourcing rules
Requirements for outsourcing will be tightened and reporting requirements to the CNB clarified. In addition to outsourcing certain management and administration activities, the act will explicitly provide for the possibility to outsource fund manager responsibilities such as portfolio management or the custody and administration of investment instruments.
- European passport for depositaries
The amendment will allow a foreign bank from the EU without a branch in the Czech Republic to be the fund's depositary if it has the CNB's approval. This option will apply to special funds and qualifying investor funds.
- New services for investment companies and self-managed investment funds
The proposed law will expressly allow for:
- the management of non-performing loans
- benchmark administration
- the management of special purpose vehicles in the context of securitisation
- the acquisition of receivables from loans granted by investment funds or assigned to a fund if the manager participated in their negotiation.
- Regulation of loan-originating funds
A comprehensive framework will be introduced for funds that acquire loans, including loan-originating funds. The proposed law stipulates:
- the obligation to comply with management and control system requirements
- the obligation to maintain risk concentration limits
- obligations concerning the establishment and application of policies, procedures, and processes for the acquisition of receivables
- the prohibition of originate-to-distribute (OTD) models.
- Deregulation and technical adjustments
- The amendment also proposes to simplify the legal framework by, e.g.:
- removing the minimum capital requirement for investment funds
- eliminating the obligation to establish an expert committee for real estate valuation
- removing the requirement to prove legal capacity, and the obligation to inform the CNB of the non-approval of financial statements
- reducing the extent of reporting obligations of persons under Section 15 of the AICIF
- abolishing the obligation to have senior staff approved (only changes in the obliged persons will be reported, with the CNB being able to issue a disapproving opinion within 30 days).
What will this mean for you?
The amendment will introduce new opportunities and obligations. It will affect funds and their managers as well as investors who use loans provided by investment funds or assigned to a fund where the fund managers participated in their negotiation, and investors planning new investment structures. We recommend assessing the amendment’s impact in a timely manner and possibly adjusting any affected internal processes and statutes.
We will be happy to go over the specific implications for your business with you and help you adjust to the new requirements.