New Type of Investment Fund in Slovakia

Bratislava, 20 February 2017

A recent amendment to the Collective Investment Act, introduced numerous changes in Slovakia’s collective investment market. The essential change consists in the amendment that provides a new type of investment fund – commonly known as a SICAV (from the French: Société d’Investissement à Capital Variable). The new form of collective investment is aimed at contributing to the development of the Slovak capital market.

SICAV allows the structuring of investments in Slovakia and also into other countries, especially Central and Eastern Europe, by providing an increased protection of the investors and distribution of capital at effective rates.

The amendment also reflects the obligation of Slovakia to transpose Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS).