COREDO > Licensing > Financial Licences in the EU > Investment Activity Licence

Investment Activity Licence

Investment Activity Licence — EU Authorization to Manage Investment Funds

Investment Activity Licence — authorization to manage investment funds in the EU under UCITS and AIFMD frameworks. It allows managing funds (UCITS and AIF), working with investors, and providing asset management services across the EEA market.

COREDO supports the acquisition of investment licences and the launch of fund activities in Europe.

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What Is an Investment Activity Licence

An investment activity licence is the authorisation a company needs to manage investment funds in the EU. It is granted by the national financial supervisory authority under the UCITS Directive (2009/65/EC) and AIFMD (2011/61/EU). With the licence, the company may:

Manage investment funds

Manage UCITS and alternative investment funds (AIF). Where national law allows, also manage individual portfolios under mandate, including those of pension funds.

Work with investors

Raise capital from investors: UCITS may be marketed to retail investors, AIF primarily to professional investors.

Provide asset management

Offer asset management services to clients on the EEA market.

Operate across the EEA

Manage funds and attract investors in other EEA countries through UCITS and AIFM passporting, without separate licences.

Regulatory Framework: Investment Activity Licence vs. Banking Licences

Fund managers are authorised under the UCITS Directive (2009/65/EC) and AIFMD (2011/61/EU) by the national financial supervisory authority, such as CySEC, CNMV or CNB. UCITS managers need own funds of at least EUR 125,000; the table compares the capital and permitted activities with those of a banking licence.

Criterion	Investment Activity Licence	Banking Licences
Minimum Capital	EUR 125,000–300,000	EUR 5,000,000
Fund Management	✅ Yes	❌ No
Accept Deposits	❌ No	✅ Yes
Professional Trading	✅ Yes	✅ Yes
UCITS/AIF	✅ Yes	❌ No
Decision period	AIFM: 3 months from a complete application, extendable by 3; UCITS manager: 6 months	6 months from a complete application, 12 months at most (CRD IV, Art. 15)

Requirements for Obtaining a Licence

To obtain an investment fund management licence, you must meet strict regulatory requirements:

Capital Requirements:

The minimum own funds for managing investment funds is EUR 125,000 for UCITS managers under Directive 2009/65/EC.

For AIF managers, the initial capital is EUR 125,000 for an external manager or EUR 300,000 for an internally managed fund.

Competent Management:

Board members, shareholders, and key staff must possess significant professional experience in the investment sector and appropriate financial education.

Impeccable reputation is required. Regulators conduct screening against EU sanctions lists and PEP databases and require integrity tests.

Investment Management Competence:

The company must demonstrate proven experience in portfolio management, risk calculations, compliance with investment limits, and disclosure requirements for investors.

Risk Management Policies and Procedures:

Develop systems to manage operational, credit, market, and liquidity risks.

Regular stress tests of portfolios and monitoring of compliance with investment limits are required.

AML/CFT Compliance:

Implement AML controls and CFT procedures under national AML laws based on Directive (EU) 2015/849, including KYC/KYB verification of all investors, transaction monitoring, and, where appropriate to the size and nature of the business, an independent audit function. From 10 July 2027 the EU AML Regulation (2024/1624) applies directly.

Business Plan and Investment Strategy:

Provide detailed descriptions of managed fund types, target investors, and investment strategies.

Forecasts of assets under management, a development plan, and fund marketing methods are required.

IT Infrastructure and Security:

Reliable accounting and reporting systems, investor data protection, backup systems under DORA, GDPR compliance.

Licence in Different Jurisdictions

COREDO provides investment fund management licensing services in the following jurisdictions:

Jurisdiction	Regulator	Minimum capital	Regulator’s decision period from a complete application	COREDO price	Notes	Country page
Czech Republic	Czech National Bank (ČNB)	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9); EUR 50,000 for a self-managed fund below the ZISIF threshold (ZISIF § 29)	AIFM: 3 months, extendable by 3; UCITS manager: 6 months	from EUR 8,500 + VAT (§ 15 ZISIF registration for management below the ZISIF threshold, not a UCITS/AIFM licence); from EUR 40,000 + VAT (self-managed FKI licence)	Closest to COREDO HQ, experienced regulator (CNB)	Learn more
Estonia	Finantsinspektsioon	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9)	AIFM: 3 months, extendable by 3; UCITS manager: 6 months	On request	Fintech-friendly environment	Learn more
Lithuania	Bank of Lithuania	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9)	AIFM: 3 months, extendable by 3; UCITS manager: 6 months	On request	Part of EEA, competitive conditions	Learn more
Cyprus	CySEC	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9)	AIFM: 3 months, extendable by 3; UCITS manager: 6 months	On request	International financial center, COREDO experience	Learn more
Spain	CNMV	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9)	AIFM: 3 months, extendable by 3; UCITS manager: 6 months	On request	Major European jurisdiction	Learn more
Portugal	CMVM	EUR 125,000; EUR 300,000 for an internally managed AIF (UCITS Art. 7, AIFMD Art. 9); EUR 75,000 for a small manager (Decree-Law No. 27/2023)	3 months, extendable by 1 month; 30 days for a small manager (Portuguese Asset Management Regime, Decree-Law No. 27/2023)	On request	Stable regulatory environment	Learn more

COREDO Service Cost: from EUR 8,500 + VAT for registering a Czech investment fund with the CNB under Section 15 of the ZISIF. Where the table shows no price, licensing is priced individually, depending on the jurisdiction, complexity of the investment strategy, and fund management experience. Contact our team for a detailed quote.

How We Work: Licensing Stages

Obtaining authorization to manage investment funds involves several stages:

Stage 1: Document Preparation

Prepare the registration package: constitutional documents, financial information on owners, management qualification documents, investment strategy, IT systems description, risk management and AML/CFT policies, business plan.

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Stage 2: Application Submission

File the application with the national financial supervisory authority (CySEC, CNMV, CNB, etc.).

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Stage 3: Application Review

The regulator analyzes manager qualifications, viability of the fund management strategy, and capital adequacy.

Risk management systems, investors, and beneficial owners are verified through PEP databases. Under AIFMD (Article 8), the decision on a complete application comes within three months, which the regulator may extend by up to three more; for UCITS managers the period is six months.

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Stage 4: Licence Issuance

Following approval, the licence is registered in the state registry, and the company may begin fund management operations.

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Non-EU Fund Managers Entering the EU Market

COREDO increasingly works with fund managers and investment companies based outside the European Union who seek access to EU investor capital or need EU-regulated fund structures.

United Kingdom. After Brexit, FCA-authorised fund managers lost EU passporting rights. Access to EU investors or fund distribution requires a separate EU licence (e.g. Lithuania, Estonia, Cyprus). A local EU structure and regulatory authorisation are required.

Singapore. Fund managers regulated by MAS under the Securities and Futures Act fall under the EU AIFMD third-country regime. EU market access is possible via national private placement regimes or full EU authorisation through a separate fund structure and licence.

Switzerland. FINMA-regulated fund managers have no EU passport: marketing in the EEA goes through national private placement regimes or requires EU authorisation. The AIFMD third-country regime applies.

Dubai and UAE. Fund and asset managers regulated by DFSA and VARA have no direct access to the EU market. Access to European investors requires establishing a separate EU-authorised fund structure with full regulatory approval.

For all non-EU clients, COREDO provides end-to-end support: from company formation in the chosen EU jurisdiction to licence application, AML compliance setup, and ongoing regulatory reporting.

Passporting and EEA Expansion

A key advantage is the ability to conduct fund management and investment services across all countries of the European Economic Area without separate licences.

The UCITS and AIFM passporting mechanism allows companies to:

Expand fund management to other EEA countries without re-applying for authorization in each jurisdiction
Market funds to investors in other EU countries after notification: UCITS to retail investors, AIFs to professional investors
Open branches and representative offices in other jurisdictions

This makes the licence especially valuable for ambitious companies planning European market expansion.

Why Choose COREDO

Proven track record

COREDO has supported financial licensing projects across the EU since 2016

Access to European investment markets

right to manage funds across all EEA countries

Professional status

recognition as a professional market participant

Passporting

expand to other jurisdictions without additional licences

Attract investors

collect capital from institutional and retail clients

Regulatory support

European regulator oversight ensures reliability

Competitive conditions

low capital requirements (EUR 125,000–300,000) compared to banks

Contact us

Case Studies

Case 01Asset Management Company in Czech Republic.

A Czech portfolio manager with EUR 200,000 capital sought UCITS management licence to launch institutional investor fund. COREDO prepared comprehensive fund documentation, risk management framework, and investor prospectus compliant with ESMA requirements. ČNB approved fund licence in 3 months; fund launched with EUR 5 million initial institutional capital within 2 weeks.

Case 02Alternative Fund Operator in Lithuania.

A Lithuanian real estate investment fund manager required an AIFM licence for a EUR 15 million real estate acquisition fund targeting Baltic markets. COREDO coordinated the AIFM application including detailed fund strategy, depositary arrangements, and independent valuation procedures. Licence granted in 3 months; fund completed its first property acquisition within 1 month of authorization.

Case 03Investment Advisory Firm in Portugal.

A Portuguese investment advisory group sought a full investment management licence to offer portfolio management and discretionary investment services to high-net-worth clients. COREDO managed the licensing application including compliance infrastructure, client onboarding procedures, and fee structures compliant with MiFID II. Licence issued in 2 months; firm attracted 40+ institutional clients within 3 months of authorization.

Discuss Your Acquisition

Our Experts

Pavel Kos

Head of Legal. Has been with COREDO since June 2017 and has headed the legal team since July 2020. Possesses extensive experience in supporting financial licensing projects in the Czech Republic and other EU jurisdictions.

Alena Mach

Executive Director

Nikita Veremeev

Founder & NED

Gregory Lutsenko

Head of Compliance

Frequently Asked Questions

What ongoing compliance obligations apply after receiving the licence?

Post-authorization obligations include: annual audit by an independent auditor, regular regulatory reporting, ongoing KYC/KYB for all new investors, regular stress testing of portfolios, an independent AML/CFT audit function (where appropriate to the size and nature of the business), and investor disclosure obligations via KIID (Key Investor Information Document) or PRIIPs KID. Failure to maintain these obligations may result in licence suspension or revocation.

Can a newly established company without an investment track record obtain this licence?

Yes, but regulators scrutinize such applications more closely. Typically required: a comprehensive business plan with realistic AUM projections, key personnel with demonstrable investment management credentials, and a pre-arranged relationship with a depositary bank. COREDO assists in building the pre-licensing infrastructure that demonstrates operational readiness to regulators.

What are the key differences between UCITS and AIF management licences in terms of investor access?

UCITS authorisation permits marketing funds to retail investors across the EEA under full consumer protection rules, including a mandatory key information document (PRIIPs KID) and strict investment limits. AIF management authorisation under AIFMD is primarily for professional investors (institutions, qualified private investors); AIFs may be marketed to retail investors only where the Member State concerned allows it, on its own conditions (Article 43 AIFMD). The choice of licence type determines your marketing strategy, compliance costs, and the investor universe you can reach.

What capital must be maintained on an ongoing basis after licence issuance?

Initial capital requirements (EUR 125,000 for UCITS and external AIF managers, EUR 300,000 for internally managed AIFs) are minimums that must be maintained at all times, not just at application. Additionally, if assets under management exceed EUR 250 million, UCITS and AIF managers must hold additional own funds equal to 0.02% of the excess. The required total of initial capital and this amount does not exceed EUR 10 million. Capital adequacy is reported to the national regulator at the intervals it sets.

What is the difference between UCITS passporting and AIFM passporting?

UCITS passporting (under Directive 2009/65/EC) allows cross-border marketing of retail funds to individual investors across all EEA countries. AIFM passporting (under Directive 2011/61/EU) is available for marketing AIF to professional investors only. AIFs may be marketed to retail investors only where the Member State concerned allows it, on its own conditions. The choice of passporting type determines the investor base you can reach.

Contact COREDO

Ready to obtain an Investment Activity Licence? Request a consultation from our team — we will select the optimal jurisdiction and provide a cost estimate.

Phone: +420 228 886 867 | Email: info@coredo.eu Address: K Cervenemu dvoru 3269/25a, Prague 3, 130 00, Czech Republic

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