An investment fund in Estonia requires two structural units — the fund itself as a holder of property assets and the fund manager — the legal entity that manages one or more funds.
The fund manager manages the assets of a fund company or a contractual fund. It is important to note that one management company can manage several funds.
It is required to obtain a license to operate as a fund manager in a management company. Fund managers who want to manage euro funds and large-scale alternative investment funds also need to obtain a license.
In a small fund, a fund manager should apply for an operating licence as a small fund manager or register its activities with the Estonian Financial Supervision Authority (EFSA). This kind of manager can only manage non-public investment funds, meaning their business is primarily aimed at professional investors.
If a small unlicensed fund management company does not wish to apply for a licence as a small fund manager, they have to register their activities with EFSA. EFSA’s supervision over registered unlicensed small fund managers is limited to the registration and later data collection.
The decision by EFSA is usually made within two months of documents submission.