The creation, as well as the functioning, of investment funds in Poland, is regulated by the Act on Investment Funds of August 28 1997 (Journal of Laws of 1997, No 139, item 933 with further amendments).
According to the Act, an investment fund is a legal person, whose exclusive object of activity is the investment of publicly collected money in securities and other assets specified by the Act.
An investment fund can be created solely by an investment company duly licensed by the Securities and Exchange Commission. There are four legally admissible forms of investment funds, which are:
- open-end funds;
- specialized open-end funds;
- closed-end funds; and
- mixed funds.
To create an investment fund the following statutory requirements should be met:
- a statute for the fund drafted by an investment
- a contract concerning custody of the fund's assets executed
by the investment company with a depository bank;
- a permit issued by the Securities and Exchange
- the amount of contributions specified in the statute is
paid into the fund; and
- the fund is entered into the Investment Fund Registry.
Each investment fund acquires legal personality upon its entry into the Investment Fund Registry, at which time the investment company becomes a body of the fund.
Depending on their form, investment funds are allowed to invest, among other things, in securities, pecuniary liabilities, foreign currencies, derivatives of the underlying property rights of investments and forward contracts.