Asset management company

In accordance with the current legislation, an asset management company (AMC) is a business company established in the form of a joint-stock company or a limited liability company that carries out professional activities in managing the assets of institutional investors on the basis of an appropriate license. The minimum amount of the authorized capital of an asset management company in accordance with the current legislation of Ukraine is UAH 7 million, while it is formed exclusively in cash, and the state's share in it should not exceed 10%. In addition, a reserve fund is created in the AMC, the size of which should not be less than 25% of the authorized capital.

The AMC cannot carry out other types of professional activities in the stock market, but can simultaneously manage several joint investment institutions (corporate and mutual investment funds). A legal entity can also create a separate subdivision that manages the assets of institutional investors, including those outside of Ukraine, in agreement with the National Commission for Securities and Stock Market (hereinafter referred to as the Commission), on the basis of a license obtained, subject to compliance with the requirements for separate subdivisions licensee.

We can safely say that asset management companies are professional participants in the stock market, because they are indispensable in the creation and management of joint investment institutions: corporate and mutual funds. However, for the full functioning of the AMC, it needs to obtain a license to carry out asset management activities of institutional investors (asset management activities). This involves the implementation of a whole range of actions:

Entering AMC in the register of financial institutions
Personnel training (at least three specialists in the field of asset management of institutional investors, including the director)
Passing the certification procedure in the manner prescribed by the Commission
Bringing internal documents and procedures of the company in line with the requirements of the license terms
Bringing the company's premises in line with the requirements of the license terms
Joining a self-regulatory organization of professional participants in the stock market, which unites asset management companies that manage the assets of institutional investors (hereinafter referred to as the self-regulatory organization)
Obtaining a written submission from a self-regulatory organization
Formation and submission of a package of documents required to obtain a license

For the AMC on the administration of pension funds, it is also necessary to:

Entry in the State Register of Financial Institutions
Obtaining a license to carry out activities for the administration of pension funds

It is important to know the requirements that are in the licensing conditions for AMC:

To the head and certified specialists of the AMC:
They cannot be officials and certified specialists in another professional stock market participant, have less than two years of experience in managing the assets of institutional investors, have a criminal record for intentional acquisitive crimes, or engage in entrepreneurial activities.
To the person who is entrusted with the accounting of the AMC:
Must meet the professional requirements established by law for chief accountants of professional participants in the securities market, cannot be officials in another professional participant in the stock market.
To the business reputation of individuals-participants (shareholders) with significant participation, as well as persons through whom indirect control is exercised and AMC officials over the past two years:
the person was not deprived of the right to hold certain positions or engage in certain activities in the securities market;
the person does not have a criminal record for crimes against property, in the field of economic activity and / or in the field of official activity, not withdrawn or outstanding in the manner prescribed by law;
the person has not held a position in a professional stock market participant, including other than a company that has been declared bankrupt and/or liquidated by a court decision; to which the revocation of the license was applied;
the cancellation of the certificate for the right to carry out professional activities with securities has not been applied to the person;
the person was not held administratively liable for violation of the law on the securities market more than two times during the year, and for AMC officials - did not commit more than three administrative offenses on the stock market
no sanctions were applied to the person by the relevant foreign states, interstate associations, international organizations and / or Ukraine, etc.
To the AMC ownership structure:
Information about the ownership structure and related persons of the AMC should be transparent, such that it discloses information about the system of relationships between legal entities and individuals in this AMC, enables the Commission to identify all persons who have a significant participation in a professional participant in the stock market, including control relationships between them. This information must be true, complete, and comply with the License Terms.
To the location of AMC:
The executive body of the AMC must be located in the premises at the location specified in the USR. Documents relating to the implementation of professional activities should be kept in this room. In addition, the AMC is obliged to ensure access to the premises and the availability of services provided under a license to persons with disabilities and people with limited mobility. The total area of the premises is not less than 30 sq.m., and for separate subdivisions - not less than 20 sq.m. The premises must be guarded around the clock.

In such a volume of procedures and requirements, it is not easy to understand on your own. It is best to leave organizational and “paper” work to professionals. The company "Finance Business Service" will take care of all the difficulties, providing a full range of services to launch the activities of the AMC. Our services include:

Advising on registration and licensing of AMC;
Amending the charter of the company (if necessary);
Preparation of documents (draft decisions of the executive body and / or supervisory board, certificates, questionnaires, information, etc.);
Notarization of copies of documents and powers of attorney;
Development of internal documentation of the company in accordance with the requirements of licensing conditions and a package of documents for joining a self-regulatory professional organization
Assistance in recruitment
Organization of entry into a self-regulatory organization
Formation and verification of the completeness of the package of documents required to obtain a license;
Submission of documents to the relevant authorities;
Administration of payments: state fee for obtaining a license (in the amount of UAH 3,000), entrance and membership fees to a self-regulatory organization, for training and certification of specialists;
Organization of financial monitoring;
Representation of interests and full legal support of processes for interaction with government bodies;

The client must provide:

The charter and other constituent documents of the company (JSC or LLC) (the decision of the founders on its foundation or an official document confirming the registration of a foreign legal entity in the country in which its registered head office is for a non-resident). Main directions and restrictions of investment activity;
Documents of the founder(s) and all persons through whom indirect control of the company will be carried out:
- For individuals - passport and identification code;
- For resident legal entities - a certificate or extract of state registration, a decision on participation in the creation of a company;
- For non-resident legal entities - a document confirming the registration of a foreign legal entity in its country, a decision to participate in the creation of a company, a notarized (apostilled) power of attorney for a representative who will sign documents on behalf of the company, a copy of the passport and identification code of the representative.
Auditor's report on the financial condition of the company as of the end of the reporting period (if any), as well as copies of financial statements certified by an audit firm
Documents on the financial condition of the participants of the company with a significant participation
- For individuals - a copy of the tax return or a certificate from the tax authority on the filing of the declaration or other document confirming the source of origin of funds that were contributed to the authorized capital of the company
- For legal entities - Auditor's report on the financial condition as of the end of the reporting period (if any)

Upon completion of the registration process, the client will receive the following documents:

Internal documents that determine the procedure for providing financial services: the procedure and terms for considering applications from clients and professional participants in the stock market, the procedure for preventing unauthorized access to restricted information and its misuse; procedure for internal audit (control) and risk management system
Certificates of specialists for the right to carry out actions related to the direct implementation of professional activities in the stock market
License to carry out professional activities in the stock market - asset management activities of institutional investors (asset management activities)
Certificate of entry in the State Register of Financial Institutions (for the AMC for the administration of pension funds)
License to carry out activities for the administration of pension funds (for the AMC for the administration of pension funds) and others.

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