In recent months there has been an increasing level of smaller-scale investment into qualified investment funds in the Czech Republic as a result of the amendment to the Act on Capital markets (Act No. 148/2016 Coll) (the “Amendment”), which has been in effect since June 1. The Amendment significantly lowered the barriers for investment into qualified investment funds, and investors are now able to invest as little as 37,000 EUR (approx.), which marks a sharp reduction on the previous requirement of EUR 125,000.
The lowering of the initial investment threshold has been welcomed by those seeking to make qualified investments on a lower scale; however under the legislation people that seek to invest between 37,000 EUR and EUR 125,000 are required to meet additional criteria. These include obtaining the informed consent of the investor as well as an assessment by the administrator of the fund on the financial background, financial goals and experience of the investor.