ZASI/ASI policy

Hard2beat Spółka z ograniczoną odpowiedzialnością is an Externally Managed Alternative Investment Company Manager, which was entered into the Register of AIF Managers maintained by the Polish Financial Supervision Authority (KNF) on April 26, 2019.

Managers of AIFs, within the meaning of the Act of May 27, 2004, on investment funds and the management of alternative investment funds (“UFI”), are subject to supervision by the Polish Financial Supervision Authority (“KNF”) as entities operating in the capital market, to the extent that they are subject to specific legal obligations related to participation in that market.

According to Article 2 of the Act of July 21, 2006, on financial market supervision, the goal of the KNF in overseeing the financial market is to ensure the proper functioning of the market, its stability, security, and transparency, trust in the financial market, and the protection of the interests of its participants. This includes providing reliable information on market functioning and achieving the objectives set out in, among others, the Act of July 29, 2005, on supervision of the capital market. Supervision of the capital market aims specifically at ensuring proper market functioning, particularly the security of trading, the protection of investors and other participants, and compliance with fair trading rules.

Furthermore, the AIF manager should conduct its activities in accordance with the law and the principles of fair trading. Individuals who influence the activities of the AIF manager must fulfill their duties in line with the principles of fair trading and in a manner that does not harm the interests of AIF investors. They must not engage in activities that could potentially circumvent the law or directly violate universally applicable legal norms.

Information on the scope of supervision by the Commission over an AIF manager registered in the AIF managers register:

• The AIF manager registered in the register is subject to significantly limited obligations towards the supervisory authority, in particular reporting obligations that involve submitting annual information to the Commission only about the total value of assets in the investment portfolios managed by the AIF, and the five largest investments.
• Financial statements of the AIF manager and the AIF are not submitted to or verified by the Commission.
• The Commission also does not supervise or verify the composition of the AIF’s investment portfolio or changes in its internal documents, such as its investment policy and strategy. The UFI does not impose any restrictions on the actual composition of this portfolio or the specific content of the investment policy and strategy.
• The list of AIF investments remains open, due to the absence of statutory restrictions on permissible investments, rules for diversification, or liquidity management, as long as they are consistent with the exclusive purpose of the AIF’s activity, adhere to the principles of fair trading, and adequately protect the interests of AIF investors.
• There is no requirement for the AIF to conclude an agreement with a depositary (bank or investment firm) that would store and maintain a register of all its assets and serve as a key entity overseeing the activities of the AIF manager.
• There is also no obligation for the AIF manager to adopt or maintain a remuneration policy or internal regulations concerning internal control systems, including legal compliance (compliance), audit, or risk management.
• Due to the limited scope of regulation of a registered AIF manager, and therefore the limited scope of KNF supervision over this entity, AIF investors must take into account the higher investment risk associated with investments in AIF participation rights.

According to Article 70a, paragraph 6 of the UFI, the AIF manager is required to maintain its own website, where it publishes, in particular, legally required information and announcements.