Structure

Art Finance Fund is a suite of financial securities issued in compliance with the current EU financial Regulations.
To date, the structure of the Art Finance Fund is composed as follows:
- Art Finance Fund is an open-ended non-regulated variable capital investment company incorporated under the Laws of the Republic of Bulgaria.¹

- Art Finance Fund S.C.S.p .: it's is an umbrella shaped investment Company specializing in alternative assets and exclusively in Artworks, under the Luxembourg legislation;
- Free Europe S.a.r.l .: it's a Luxembourg Company acting as Portfolio Manager, both for Art Finance Fund A.D., and for Art Finance Fund S.C.S.p. and which operates with a share capital of €. 1,000,000 fully paid up.

All Financial Instruments issued by Art Finance Fund are addressed to Investors:

• Qualified;
• Professionals according to Legislation;
• Professionals upon Request.

Such a classification is compliant to the UE 2014/65/UE (the so called “MIFID 2”) Directive and it also takes in consideration the UE 2017/565 implementing Regulation referring to the same MIFID 2 (the proxy Regulation), furthermore it takes into account the European Securities and Markets Authority (“ESMA”) dispositions.

In order to pursue the operational powers separation from the administrative and controlling ones and thus aiming to taking measures to achieve a balanced and transparent administrative plan of actions, Art Finance Fund has adopted the following scheme:

Item	Task
Art Finance Fund : Board of Directors	It oversees all the activities either operational and/or administrative, which are supplied by the “Services Companies”. It undertakes the mandates with the said “Services Companies” and provides the Corporate financial settlement. It steers the Supervisory Authorities relationships.
Administrative Service Company	It's the qualified and specialized Company which provides the following services: – Verifiche KYC e AML; - Book keeping;-N.A.V. Calculation (Net Asset Value); ); Funzione: – Conservatore del registro e agente incaricato dei trasferimenti delle Azioni di Art Finance Fund.
Service Company Accounting and Taxation	It is the qualified and specialized company that exclusively perform the following tasks: - Accounting Services; - Financial statements and corporate reporting; - Corporate taxation and taxation on transactions relating to works of art.
Portfolio Manager Service Company	It's the qualified and specialized Company which provides the following services: - Art Finance Fund Investor Manager; - Advisory, reporting, recommendations supplying concerning: the Art Finance Fund operational management; the Artworks scouting to be achieved / sold and all the activities who may concern Art Finance Fund itself. - It arranges Asset deals on behalf of Art Finance Fund.
Depositary Bank	It's a properly licensed Bank under control of the Country Supervisory Authority, which provides the following activities: - Art Finance Fund Asset Custodian; - Art Finance Fund relevant documents and contracts Custodian; - Supervisory and control on the AML activities compliance; - Cash Flow supervisory;
Security House	Composed by Companies which provides safety deposits and thus acting as the Company's Artworks Custodians. They adopt the best practices in order to prevent any risk. They are also equipped to keep the correct atmosphere parameters, so that the Artworks do not undergo alterations.
Art Technical Committee	Composed by independent experienced professionals practiced on: -Artworks authenticity checking; -History of Art; -Artworks market. Task: It supports the Art Finance Fund Board of Directors and/or the Portfolio Manager Service Company, within their own topics.
Legal Committee	Composed by independent experienced professionals practiced on: -Art Law; -Artworks International Taxation; -International Logistic on Artworks. Task: It supports the Art Finance Fund Board of Directors and/or the Portfolio Manager Service Company, within their own topics.
Investment Technical Committee	Composed by independent experienced professionals practiced on: -Collective Financial Instruments and Asset Management; -Institutional Investors and Financial Authorities relationship; -Financial Markets trend line analysis. Task: It supports the Art Finance Fund Board of Directors and/or the Portfolio Manager Service Company, within their own topics.

1Bulgaria has been a member of the EU since 2007. Since July 2019, it has entered the ERM 2 system, i.e. the monitoring system that preludes the adoption of the Euro as the national currency of account. Its entry into force is expected on 01.01.2024