AMENDMENTS TO THE INVESTMENT COMPANIES AND INVESTMENT FUNDS ACT
The Parliament passed certain amendments to the Investment Companies and Investment Funds Act which come into effect on 1 July 1996. One major purpose of the amendments is to increase the transparency of investment companies and investment and mutual funds, by introduction of new reporting obligations to the Ministry of Finance, Securities Centre and its custodian bank on a regular basis. Reported information also has to be made available to the public.
Other changes are summarised below:
- From July 1996, investment companies, as well as investment funds must have a legal form of a joint stock company (a.s.). Current investment companies and funds in the form of a limited liability company (s. r. o.) must be converted to an a. s. within two years.
