In Estonia, ordinarily, a small fund manager does not need a license, except when managing public limited fund or common fund (According to §306 (2) of the Investment Funds Act), but nevertheless the fund manager needs to register its activities with the Financial Supervision Authority.
Under the Investment Funds Act, an investment fund can be contractually established or set up as a public limited liability company, limited partnership or a defined benefit pension fund as an employer. Under the new Investments Funds Act, which came into force on January 10, 2017 it is now possible to create trust funds for joint private and venture capital investment. According to §3 (6) of the Investment Funds Act, a small fund manager is someone, who directly or indirectly holds alternative funds with a total assets of not more than EUR 100 million. Similarly, if the total assets do not exceed EUR 500 million, provided that the portfolio of alternative funds consists of non-leveraged alternative funds, and in the five years following the date of each investment of the alternative fund, it is not possible to use the right to redemption of units or shares.
Author: Anne VeerpaluContact: