Spring 2023 was finally a happier period for the capital market in Slovakia

Spring 2023 was finally a happier time for the capital market in Slovakia because: ✅In March, the EU DLT Regulation came into force, which
allows trading and settlement of transactions with tokenized financial instruments ( Roman Baranec and I wrote an article about it – more info here: https://lnkd.in/dj_k3vY5); ✅bond proceeds paid to foreign entities will no longer be taxed at source (although they have been taxed since 1.1.2023); ✅EU ELTIF Regulation 2.0 came into force in April, which
makes it easier for retail investors to invest in funds with low liquid assets – a departure from the previous investment rigidity of retail investment funds (more info in our article here: https://lnkd.in/dQsvFt5Z); ✅the National Bank of Slovakia is currently finalising methodological guidance on the demarcation between “fund” and “non-fund”. In relation to the last point, we are glad that this initiative at
NBS has been launched and that we can be part of its content development. In our experience, around 50% of structures that collect funds in some form from investors do not necessarily enter into fund regulation. Or we build them offshore for PR/admin/tax reasons. As clichéd as it sounds, greater legal certainty on the question of “is it a fund” or “is it not a fund” is key. Namely, collecting money from investors without the appropriate authorisation can, in the aggregate, fulfil the offence of laundering the proceeds of crime. And, even for a small investment fund, this can carry a penalty of forfeiture of assets and a prison sentence of “up to 20 years”. I am therefore glad for the efforts of the NBS in consolidating legal certainty. Despite the occasional inherent disagreements on substance, its approach is constructive and measured.

And with a great deal of humility, I would also like to say that we are helping to build and shape the capital market in Slovakia in a relatively agile way, because: ➡️last summer we organised a major conference on legal
and tax issues in setting up smaller investment funds in Slovakia and abroad(https://lnkd.in/dyy6JRPV);
➡️we were instrumental in allowing the creation of more types of shares in SICAVs (without this, SICAVs could have almost no application);
➡️we also stood for the flexibilisation of small investment funds (which
can be set up for EUR 5 000), so that not only professional investors can invest in them;
➡️we founded with Tomas Demo the first venture capital fund
(EuVECA) in Central Europe, in Slovakia;
➡️we advise the state on legal and tax issues in the field of
capital market / crypt. We do not only want to live in Slovakia, but also to operate in Slovakia. P.S. The photo is fittingly from the construction site of the new premises for Highgate Law & Tax in Nivy Tower. I believe that the capital market can also be built in Slovakia in a healthy and systematic way.