Decree of the Ministry of Finance No. 362 / 2001 Coll.
Ordinance of the Ministry of Finance on detailed rules for determining and paying the remuneration for the performance of the duties of the compulsory administrator and liquidator of an investment company or investment fund
Valid
Order
Effective from 01.11.2001
Text versions:
01.11.2001
10.10.2001
362
DECLARATION
Ministry of Finance
of 21 September 2001
laying down detailed rules for determining and paying the remuneration for the performance of the duties of forced administrator and liquidator of an investment company or investment fund
According to Article II (1) of Act No. 151 / 1996 Coll., amending and supplementing Act No. 248 / 1992 Coll., on Investment Companies and Investment Funds, as amended:
Scope
The decree provides for the amount and method of determining and paying the remuneration for the performance of the duties of the compulsory administrator and liquidator of an investment company or investment fund appointed by the Securities Commission (hereinafter referred to as "the Commission ') and the liquidator of an investment company or investment fund appointed by the Court on a proposal from the Commission.
Determination of the remuneration of the liquidator of the IF
(1) The Commission shall fix the remuneration to the liquidator of the investment fund at the rate of CZK 500 for each hour worked (hereinafter the "hourly rate").
(2) The total amount of remuneration in CZK according to paragraph 1 does not exceed the amount
(a) 40,000 + [(0,02 x VK) x (1 - L)] if the VK does not reach CZK 10 million,
b) 40,000 + [(200 000 + 0,01 x VKb) x (1 - L)] if VK is between CZK 10 million and CZK 86 million inclusive,
(c) 40,000 + [(960 000 + 0,005 x VKc) x (1 - L)], but not more than 1 million, if VK is more than CZK 86 million, or
(d) 40 000 for the negative value of VK;
where
VK is the equity value of an investment fund,
VKb is the equity value of the investment fund reduced by CZK 10 million,
VKc is the value of the equity of the investment fund reduced by CZK 86 million,
L is the share of liquid assets in the total assets of the IF at the date the IF enters liquidation.
(3) Liquidity assets shall, for the purposes of paragraph 2, mean deposits in accounts with banks, shares in open mutual funds, treasury bills, bonds and shares admitted to trading on the main market of the Prague Stock Exchange, a. s. A liquid asset shall also be considered as a security or foreign security, for which the number of shares traded on public markets in the four weeks immediately preceding the week in which the remuneration decision is issued exceeds the number of shares of the same issue in the assets of the investment fund.
(4) The amount determined by calculation in accordance with paragraph 2 is rounded to the nearest thousand crowns.
(5) For the purposes of the calculation referred to in paragraph 2, the value of the equity capital of the IF published by the IF (1) shall be used for the week immediately preceding the week in which the Commission decides to appoint the liquidator of the Investment Fund (2), or the week in which the Commission submits an application to the court to appoint the liquidator of the Investment Fund (3).
Determination of the remuneration of the liquidator of an investment company that manages at least one holding fund
(1) The Commission shall fix remuneration at an hourly rate in accordance with Article 2 (1) to the liquidator of an investment company which manages at least one holding fund, provided that the total amount of remuneration does not exceed the lower of the amounts calculated in accordance with Article 2 (2) and paragraph 2. For the purposes of the calculation referred to in Article 2 (2), VK shall mean the sum of the equity capital of the investment company and of the equity capital in all its share funds.
(2) Total amount of remuneration in CZK does not exceed the amount
a) 50,000 + 0,05 x VKis if VKis does not reach CZK 5 million,
b) 300,000 + 0,02 x VKisb if VKis is between CZK 5 million and CZK 20 million inclusive,
(c) 600,000 + 0,01 x VKisc if VKis exceeds CZK 20 million; or
(d) 50 000 in the case of a negative Vki value;
where
VKi is the sum of the value of the equity of the investment company and the equity in all its share funds,
VKis is the equity value of an investment company,
VKisb is the equity value of an investment company reduced by CZK 5 million,
VKisc is the value of the equity capital of an investment company reduced by CZK 20 million.
(3) The amount determined by calculation in accordance with paragraph 2 is rounded to the nearest thousand crowns.
(4) For the purposes of the calculation referred to in paragraphs 1 and 2, the following shall apply:
(a) the value of equity in the holding fund published by the investment company (4) for the week immediately preceding the week in which the Commission decides to appoint the liquidator of the investment company (2), or the week in which the Commission makes a proposal to the court to appoint the liquidator of the investment company (3); and
(b) the value of the investment company's equity capital as specified in the last annual accounts, (5) if there is no later information.
Determination of the remuneration of the liquidator of an investment company that does not manage any holding fund
The Commission shall fix a remuneration of CZK 500 per hour to the liquidator of an investment company which does not manage any mutual fund, with the total amount of remuneration not exceeding the amount referred to in § 3 (2) to (4).
Reimbursement by the State of the remuneration of the liquidator of an investment company or investment fund
(1) If the assets of the investment company or investment fund are insufficient to pay in whole or in part the remuneration of the liquidator of the investment company or investment fund pursuant to § 2 to 4, the liquidator of the investment company or investment fund shall have a total flat-rate remuneration of CZK 1 000. The Commission may, depending on the circumstances of the case, reasonably increase this remuneration of the liquidator from its resources up to CZK 5,000.
(2) If the assets of an investment company or investment fund are insufficient in whole or in part to pay the remuneration of the liquidator of the investment company or investment fund referred to in paragraph 1, they shall pay the remuneration to the liquidator of the investment company or investment fund of the Commission in so far as they have not been paid from the assets of the investment company or investment fund.
Determination of the remuneration of the forced manager of an investment company or investment fund
(1) The Commission shall fix a monthly remuneration for the required manager of the investment company or investment fund:
(a) CZK 20,000 if the value of the equity capital of an investment company or investment fund is below CZK 10 million,
b) CZK 30,000 if the value of the equity capital of an investment company or investment fund is between CZK 10 million and CZK 100 million inclusive; or
c) CZK 50,000 in other cases.
(2) In justified cases, in particular where the forced manager of an investment firm or an investment fund takes exceptionally complicated measures to remedy and ensure the protection of investors' rights, the Commission may fix a remuneration higher than that referred to in paragraph 1 by up to 50%.
(3) For the purposes of determining the remuneration referred to in paragraph 1, where an investment company manages at least one holding fund or at least one investment fund, the value of the investment company's equity capital shall be increased by the value of the equity capital of all the investment funds it manages and the equity capital of all its holdings.
(4) For the purposes of determining the remuneration referred to in paragraphs 1 to 3, the following shall apply:
(a) the value of the equity capital of the investment fund which the investment company or investment fund has published (1) for the week immediately preceding the week in which the Commission decides to introduce a forced administration, (6)
(b) the value of equity in the holding fund published by the investment company (4) for the week immediately preceding the week in which the Commission decides on the introduction of forced administration, (6); and
(c) the value of the equity of the investment company as specified in the last annual accounts, (5) if there is no later indication.
Payment of remuneration to the liquidator of an investment company or investment fund
(1) The liquidator of an investment company or investment fund shall keep daily records of hours worked. The record of hours worked for the relevant calendar month shall be submitted by the liquidator to the Commission by the fifth day of the following calendar month.
(2) The liquidator of an investment company or investment fund is responsible for a monthly advance payment of the amount corresponding to the number of hours worked in the calendar month, but not more than CZK 20,000. The advance payment shall be due in advance of the calendar month on the basis of the monthly records referred to in paragraph 1 within 15 days of its submission to the Commission.
(3) Once the remuneration advances paid in accordance with paragraph 2 have been set off, the balance of the remuneration shall be payable within 10 days of the application for the deletion of the investment company or investment fund from the trading register.
Payment of remuneration to the required manager of an investment company or investment fund
The remuneration of the forced manager of the investment firm or investment fund shall be due in arrears for the calendar month by the 20th day of the following calendar month. Where the forced manager of an investment firm or investment fund has been appointed or withdrawn during a calendar month, he shall have a proportion of the remuneration corresponding to the number of working days during which he was in office. The same applies if he renounces or dies.
Transitional provisions
(1) This decree shall not apply to the determination of the remuneration of liquidators of an investment company or an investment fund and of forced managers of an investment company or an investment fund whose appointment was issued by the Commission before the effective date of the decision (2), (6) at first instance or proposed by the Commission before the effective date of the injunction (3) for appointment.
(2) From the calendar month following the month in which the decree takes effect, the payment of the remuneration of the liquidators of the investment company or investment fund and of the forced managers of the investment company or investment fund shall be governed by the provisions of Sections 6 and 7.
Efficacy
This Decree shall take effect on 1 November 2001.
Minister:
Ing. Rusnok v. r.
1) Articles 26 (2) and 26a (5) of Act No. 248 / 1992 Coll., on Investment Companies and Investment Funds, as amended by Act No. 151 / 1996 Coll. and Act No. 124 / 1998 Coll.
2) Paragraph 34 (3) of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll. and Act No. 15 / 1998 Coll.
3) Paragraph 35 (1) of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll., Act No. 15 / 1998 Coll. and Act No. 124 / 1998 Coll.
4) § 26 paragraphs 1 and 2 of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll. and Act No. 124 / 1998 Coll.
5) Paragraph 25 (1) of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll. and Act No. 124 / 1998 Coll.
6) § 37d et seq. of Act No. 248 / 1992 Coll., as amended by Act No. 15 / 1998 Coll. and Act No. 124 / 1998 Coll.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 362 / 2001 Coll. |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.10.2001 |
|---|---|
| Effective from | 01.11.2001 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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