The activity of an Alternative Investment Company Manager (ASI Manager – Zarządzający ASI), whether external or internal, may be conducted either on the basis of entry into the ASI Managers Register or by obtaining authorization from the Polish Financial Supervision Authority (KNF – Komisja Nadzoru Finansowego).

The applicable legal basis depends on the value of assets held in the ASI investment portfolios managed by the ASI Manager.

Entry into the Register vs. KNF Authorization

An ASI Manager may operate based on entry into the register if:

  • The total value of assets in the managed ASI portfolios does not exceed the PLN equivalent of €100 million;
  • Or, if the manager exclusively oversees companies that do not use financial leverage and whose participation rights may be redeemed no earlier than five years after acquisition, the threshold is €500 million.

If these thresholds are exceeded, the ASI Manager must apply to KNF for formal authorization to continue managing ASIs.

This distinction between registered ASI Managers and those operating under KNF authorization entails significant differences in supervisory scope and regulatory obligations.

Grounds for Removal from the ASI Managers Register

KNF will remove an ASI Manager from the register if:

  • A final administrative decision is issued due to the manager exceeding the asset value thresholds, and the manager fails to submit an application for authorization within the prescribed timeframe;
  • The ASI Manager voluntarily expands operations and obtains KNF authorization.

Other grounds for removal include:

  • Declaration of bankruptcy;
  • Initiation of liquidation;
  • No ASI management activity for 12 consecutive months;
  • Legal violations or registration based on false declarations or documents;
  • Voluntary request for removal from the register within 12 months of ceasing ASI management activity.

Grounds for Expiry of KNF Authorization

Authorization to operate as an ASI Manager expires if:

  • The manager fails to commence ASI or EU AIF management within 12 months of authorization;
  • The manager ceases authorized activity for at least 6 months;
  • The manager’s own funds fall below the statutory threshold defined in the Act of May 27, 2004 on Investment Funds and Management of Alternative Investment Funds, and the deficiency is not remedied within 3 months;
  • Bankruptcy is declared or liquidation proceedings are initiated.

Additionally, KNF may revoke authorization as an administrative sanction.

Summary

The occurrence of any of the above conditions requires the ASI Manager to cease operations. Whether operating under registration or formal authorization, ASI Managers must remain vigilant in monitoring asset thresholds, compliance obligations, and regulatory deadlines to maintain their legal status.

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