Umbrella Funds Introduced

It is now possible to set up umbrella funds in Slovakia.

An umbrella fund is a collective investment scheme with several distinct sub-funds that are traded as individual investment funds, and treated separately for accounting purposes.

The umbrella fund structure makes it cheaper for investors to move from one sub-fund to another. It is also cheaper to run as it removes regulatory duplication.

It is only necessary to prepare one set of statutes containing provisions for the umbrella fund, all sub-funds and for specific sub-funds.

The management company is required to set up mechanisms to identify and manage risk, including a compliance, internal audit and risk management function, investor complaint handling and personal business.