To create a corporate fund (CIF) you need to follow the stages that are clearly defined by the legislation of Ukraine, as well as know the specific nuances that are not specified in regulations, but are no less important in this process.
The speed of the CIF creation process directly depends on the level of quality of documents submitted to the National Securities and Stock Market Commission (NSSMC), other government agencies, the speed of their preparation, and the organization of the signing process.
The registration of a corporate investment fund is carried out by the NSSMC following a clearly defined procedure.
Creating a corporate fund includes the next stages:
1) initiation by the founder (founders) of a decree about the establishment of a corporate fund; approval of its draft charter; private placement of corporate investment fund shares;
2) approval by the NSSMC of the draft charter of the CIF and registration of the issue of shares for the formation of the initial authorized capital fund;
3) assignment of a share of the corporate investment fund of the international identification number of securities;
4) concluding an agreement with the Central Securities Depository on servicing the issue of securities and depositing a temporary global certificate;
5) private placement of shares among the founders of the CIF;
6) payment of the full nominal value of CIF shares for the formation of the initial authorized capital;
7) approval by the constituent assembly of the corporate investment fund of the results of the private placement of shares among the founders of the corporate investment fund, approval of the charter, election of members of the supervisory board of the corporate fund, approval of draft AMC agreements and preservation of collective investment institutions
8) state registration of the CIF and its charter in the state registration bodies;
9) concluding agreements with the company for asset management and preservation of assets of the collective investment institution (in case of concluding such an agreement);
10) registration in the National Commission on Securities and Stock Report on the results of private funds of shares among the founders of the investment fund, CIF regulations, and information on the corporate fund in the Unified State Register of Mutual Investment Institutions.
Registration of CIF regulations must be carried out within six months from the date of state registration of the corporate fund as a legal entity. CIF regulations are one of the registration documents of the corporate fund, which defines:
- main directions of investment activity (contains investment declaration);
- conditions and procedure for replacement of corporate fund employees;
- term of activity of the corporate fund (for the term corporate fund);
- the procedure for determining the value of net assets and the price of placement (redemption) of shares of the corporate fund;
- the procedure for determining the amount of remuneration of the asset management company and covering the costs associated with the activities of the corporate fund, which are reimbursed from its assets;
- the procedure for distribution of profits by a corporate fund (payment of CIF dividends) – for a closed-end corporate fund, if the possibility of their payment is provided by the charter of such a corporate fund;
- the procedure and terms of redemption of CIF of its shares;
- restriction of the company’s asset management company (minimum value of asset agreements subject to approval by the CIF Supervisory Board);
- other information.
It should be noted that the violation of the stages of creating a CIF is the basis for the refusal of the National Securities and Stock Market Commission to register a corporate fund.
Please note that the founders of the CIF need to confirm the availability of their own funds, which will form the initial authorized capital of the fund. The amount of the minimum initial authorized capital of the CIF is 1250 minimum wages in the monthly amount established by the current legislation on the day of registration of the corporate fund as a legal entity. The funds contributed by the founder to the authorized capital of the CIF will be available for investment only after the corporate fund has been entered into the CII Register.
CIF registration is a long process and can take several months.
In order for the Corporate Investment Fund to carry out joint investment activities, that is, for the Investor to be able to raise funds in the corporate fund, it is necessary to register an additional issue of securities in order to attract investors’ funds, a securities issue prospectus and carry out the procedure for depositing a global certificate.
In the absence of the opportunity to understand the nuances of creating a CIF and in order to save your own time, you can not create a new CIF on your own, but use our service to create a corporate investment fund or purchase a ready-made CIF. Which option is better to choose, read in the article “BUY A СIF OR CREATE“.