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On July 8, 2026, the Czech Parliament adopted Law 130/2026 Sb., which amends the Act on Investment Companies and Investment Funds (Law 240/2013 Sb.) and related legislation. The law takes effect September 1, 2026, with certain provisions effective April 16, 2027. The amendment introduces comprehensive requirements for fund managers and administrators overseeing alternative investment funds that acquire loan receivables. Key provisions establish a 20 percent capital limit on exposure to single borrowers, prohibit acquisitions from related parties, and require managers to retain 5 percent of transferred loan receivables. The law defines "loan receivables" and establishes leverage limits of 175 percent for open-ended alternative funds and 300 percent for closed-ended alternative funds. The amendment introduces liquidity management tools for open-ended funds, including suspension of issuance and redemptions, redemption restrictions, extended redemption periods, redemption fees, anti-dilution fees, swing pricing, dual pricing, in-kind redemptions, and asset segregation. Managers must disclose at least two liquidity management tools in fund statutes and establish procedures for their use. The law strengthens governance requirements by mandating at least two key management personnel with EU residency, establishes suitability assessments for key personnel, and introduces conflict-of-interest management procedures. It expands the Czech National Bank's supervisory authority and introduces new reporting obligations for fund managers regarding fund acquisitions, liquidity tools, and cross-border activities. The amendment also modifies provisions on fund division, enabling splitting, separation, and carve-out operations with specific procedural requirements. Transitional provisions allow existing funds established before April 15, 2024, extended compliance periods until April 16, 2029, with certain exemptions for funds not acquiring additional capital. REFERENCES: Law Gazette 2025, Issue 130/2026 Sb. (Czech Republic)

On July 23, 2026, the Act amending Act No. 240/2013 Coll. on Investment Companies and Investment Funds was published in the official gazette. The fitness and propriety requirements for a manager of an investment fund have been amended. The requirements shall include: No fact has arisen that is an obstacle to the performance of the function of a member of an elected body of a business corporation who is elected, appointed or otherwise called to the position. Acts in a trustworthy manner. Professionally competent and has sufficient knowledge and experience to properly perform this function. Suitable from the point of view of the proper and prudent performance of the activities of the investment fund manager or foreign investment fund in which they may perform the function of a manager. Professional, business or other similar activity, for example, activity for a person with a similar business, is not prevented from performing their duties properly. Has sufficient experience in managing the assets on which the investment strategy of the managed investment fund or foreign investment fund is focused. These amendments come into effect on September 1, 2026.

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Czech Republic's Law Gazette Amends Investment Company and Investment Fund Legislation

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Czech Republic Amends Investment Company and Investment Fund Legislation