Client Context
Usually located EU jurisdictions, the client is a professional trader managing his own capital. The following request arose during a transition from private trading to a scalable business model: the need to manage funds for partners, associates, and qualified investors across both public markets and real estate/private financing.
The Challenge or Strategic Dilemma
The client hit a “growth ceiling” with three primary pain points:
1. Regulatory Risk: Managing third-party funds on personal accounts within the EU without a license risks violating MiFID II directives;
2. Infrastructure Barriers: Tier-1 brokers and banks restrict the ability of private individuals to manage third-party assets through standard retail accounts;
3. The Complexity Dilemma: Traditional structures (e.g., Luxembourg SICAV or Malta PIF) require external custodians and administrators, creating prohibitive operating costs for an early-stage operation.
We conducted a comparative audit of jurisdictions
We conducted a comparative audit of jurisdictions (Malta, Cyprus, Czech Republic) and extra-EU solutions (Caymans, BVI):
Offshore vs. EU: Non-European funds were rejected due to a significant trust gap with investors and increasing difficulties in opening EU-based bank accounts.
Compliance Strategy: We focused on a “qualified investor only” model to bypass the need for a public prospectus while maintaining full transparency.
We implemented an Asset Management Company in the Czech Republic. This allowed the client to consolidate all strategies under a single corporate roof with minimal regulatory friction
Why Not Alternative Structures?
Why not Malta? Unlike Maltese PIFs, the Czech solution for this scale does not require a mandatory external depository at the initial stage, saving the client €30,000–€50,000 annually in fixed costs.
Expert Insight
The Czech Republic offers a unique “white-list” EU reputation combined with internal flexibility. This allows for a rapid launch without the multi-month “wait-and-see” approach typical of larger financial hubs.
“The greatest trust between man and man is the trust of giving counsel. For in other confidences men commit the parts of life; but in counsel, they commit the whole.”— Francis Bacon
The implemented structure delivered:
Structure: Czech Asset Management Entity (ZISIF focus).
Regulatory Basis: Section 15 of the Czech Investment Companies and Investment Funds Act.
Flexibility: Full integration with international brokers (e.g., Interactive Brokers) via Omnibus accounts.
Time-to-Launch: 6–8 weeks from inception to first trade.
This framework is the ideal "escalator" for.
- Traders transitioning from Prop-trading to their own fund;
- Family offices requiring a legal wrapper for co-investments;
- Managers whose investors demand capital be held within a reputable EU jurisdiction.
Regulatory Depth
This solution utilizes the simplified regulatory regime of Section 15 of the Czech ZISIF Act.
- Compliance: Aligned with the EU AIFMD for “sub-threshold” managers.
- Supervision: Registered in the National Bank of the Czech Republic (CNB).
- Efficiency: Simplified reporting (annually) without mandatory external custodianship.
- AUM Limits: Management of assets up to €100M (leveraged) or €500M (long term and unleveraged).
What do you want to talk about?
Expand & Invest with our experts
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FinCzech. office:
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Alexander Yakimenka, LLMCo-Founder & Chief Executive Officer