Decree No. 105 / 2006 Coll.
Decree amending Decree No. 262 / 2004 Coll., on the rules for the calculation of the capital adequacy of a non-bank dealer on an individual basis, as amended by Decree No. 383 / 2004 Coll.
Valid
Effective from 31.03.2006
Contents
Čl. I
㤠1
„ČÁST DRUHÁ
„HLAVA I
„HLAVA II
„HLAVA III
„HLAVA IV
„HLAVA V
„HLAVA VI
„Díl 1
„Díl 2
„Díl 3
„HLAVA VII
„HLAVA VIII
„HLAVA IX
„Díl 1
„Díl 2
„HLAVA X
„Díl 1
„Díl 2
„HLAVA XI
„ČÁST TŘETÍ
§ 53a
§ 53b
§ 53c
§ 53d
§ 53e
ČÁST ČTVRTÁ
HLAVA I
§ 53f
HLAVA II
§ 53g
§ 53h
§ 53i
ČÁST PÁTÁ
HLAVA I
§ 53j
§ 53k
HLAVA II
§ 53l
„ČÁST ŠESTÁ
Čl. II
Čl. III
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105
DECLARATION
of 27 March 2006
amending Decree No 262 / 2004 Coll., on the rules for calculating the capital adequacy of a non-bank dealer on an individual basis, as amended by Decree No 383 / 2004 Coll.
According to Section 199 (2) (b) of Act No. 256 / 2004 Coll., on Capital Market Business, as amended by Act No. 56 / 2006 Coll., hereinafter referred to as "the Act":
Decree No 262 / 2004 Coll., on the rules for the calculation of the capital adequacy of a non-bank trader, on an individual basis, as amended by Decree No 383 / 2004 Coll., is amended as follows:
1. Paragraph 1, including the title and footnotes 1 and 2, reads as follows:
Subject matter
This decree implements the relevant regulations of the European Community1), and provides for
(a) the solvency rules of the securities dealer (2), which is not a bank (hereinafter referred to as the trader), on an individual basis (Part Two);
(b) the solvency rules of the controlling trader on a consolidated basis (hereinafter referred to as the "controlling trader") and the solvency rules of the financial holding company on a consolidated basis (Part Three);
(c) the scope, manner and time limits for the transmission of information by the person included in the supervision on a consolidated basis (Part Four); and
(d) the scope and details of the internal control mechanisms of the persons forming the consolidation whole (part five).
1) Council Directive 93 / 6 / EEC of 15 March 1993 on the capital adequacy of investment firms and credit institutions, as amended by Directives 98 / 31 / EC, 98 / 33 / EC and 2002 / 87 / EC of the European Parliament and of the Council. Council Directive 93 / 22 / EEC of 10 May 1993 on investment services in the securities field, as amended by Directives 95 / 26 / EC, 97 / 9 / EC and 2000 / 64 / EC.
2) Section 5 of Act No. 256 / 2004 Coll., on Capital Market Business. '.
2. in Article 2 (1) (m), including footnote 2a:
"(m) international financial institutions European Investment Bank (EIB) and international development banks, namely the International Bank for Reconstruction and Development (IBRD), the International Financial Corporation (IFC), the Inter-American Development Bank (IADB), the Asian Development Bank (AsDB), the African Development Bank (AfDB), the Council of Europe Fund for Resettlement, the Nordic Investment Bank (NIB), the Caribbean Development Bank (CDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Fund (EIF), the Corporations for InterAmerican Investment Fund and the Multilateral Investment Guarantee Agency (MIGA) 2a),
(2a) Article 1 (19) of Directive 2000 / 12 / EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions, as amended by Directive 2004 / 69 / EC. ';
3. in Article 2 (2), the following point (a) is added:
"(a) jointly managed by an associated company which is a trader or financial institution with the exception of an insurance undertaking where:
1. a person who is part of a regulated consolidation entity together with at least one person not included in a regulated consolidation entity is involved in the management of such an associated company; and
2. the liability or liability of a person or persons not included in a regulated consolidation unit involved in the management of an associated company for the liabilities of an associated company shall be limited to their share in the capital of that company; ';
Points (a) to (k) shall be renumbered (b) to (l), including references to these letters.
4. In Paragraph 2 (2) (h), in the introductory sentence after the words "central government ', the comma is replaced by a dot and the words" such institutions are always such' are added.
5. in Paragraph 2 (2) (h), point 3 shall be deleted;
Points 4 to 6 shall become points 3 to 5, including references thereto.
6. in Paragraph 2 (2) (k), the words "General Arrangements to Borrow" shall be replaced by the words "General Agreement on Loan."
7. The following shall be inserted after Section 2:
The amount to be reported in column 060 of this row: Original deduction according to Article 36 (1) (a) of CRR.
The designation of the second to eleventh parts shall be deleted, including the headings.
8. The following title shall be inserted after Part Two:
BASIC PROVISIONS '.
9. In Paragraph 3 (1), the word "Czech" is inserted after the words "value in crowns."
10. in Article 3 (2), "part" is replaced by "head."
11. in Article 3 (3) (a) to (f), "part" is replaced by "head."
12. In Article 3, the following paragraph 5 is added:
"(5) However, where the rules on capital requirements referred to in paragraphs 1 to 4 are complied with, the capital of the trader shall not be less than one quarter of the trader's fixed overhead over the previous financial year. ';
13. The following title shall be inserted after Section 6:
CAPITAL DEFINITION '.
14. in Paragraph 7 (1) (b), "ažio" is replaced by "ažio."
15. in Article 7 (1) (e), the words "or an audit firm (the auditor)" shall be inserted after the words "certified by the auditor."
16. in Article 7 (5) (d), the words "with the exception of the property stopped," shall be deleted;
17. The following title shall be inserted after Section 7:
The amount to be reported in column 060 of this row:
18. The following title shall be inserted after Section 10:
The amount to be reported in column 060 of this row:
19. in Article 12 (4) (b):
"(b) in the case of reverse repo transactions, as the difference between the fair value of the monetary claim and the fair value of the securities or commodities received, unless all or part of those securities or commodities are further transferred to another person or are subject to the law of another person." Otherwise, it shall be determined as the difference between the fair value of the monetary claim and the fair value of those securities or commodities received that are not further transferred to another person or are subject to the law of another person. ';
20. in Article 12 (4) (d):
"(d) in the case of the lending of securities or commodities where the trader borrows such instruments as the difference between the fair value of the collateral provided and the fair value of the securities or commodities received, unless all or part of such securities or commodities are further transferred to another person or are subject to the law of another person. Otherwise, it shall be determined as the difference between the fair value of the collateral provided and the fair value of those securities or commodities received that are not further transferred to another person or are subject to the law of another person. ';
21. The following title shall be inserted after Section 12:
The amount to be reported in column 060 of this row:
22. The following title shall be inserted after Section 17:
The amount to be reported in column 060 of this row:
23. The following shall be inserted after Title VI:
Interest-rate instruments, their compensation and interest-rate positions'.
Designation of the current title I shall be deleted, including the title.
24. The title of Title II, including the title, shall be replaced by the following:
Capital requirement for specific interest rate risk '.
25. In Paragraph 21 (2), the following sentence shall be added at the end: "Interest rate positions corresponding to the money for repos and reverse repos shall be assigned by the trader to the zero coefficient."
26. Article 21, the title of Title III, including the title, is replaced by the following:
Capital requirement for general interest risk '.
27. The following title shall be inserted after Section 26:
The amount to be reported in column 060 of this row:
28. The following title shall be inserted after Section 32:
The amount to be reported in column 060 of this row:
29. The following title shall be inserted after Section 36:
The amount to be reported in column 060 of this row:
30. The following title shall be inserted after Title IX:
Commodity tools and their positions. "
Designation of the current title I shall be deleted, including the title.
31. Under Article 39, the current title of Title II, including the title, shall be replaced by:
Capital requirement for commodity risk '.
32. The following title shall be inserted after Section 45:
CAPITAL REQUIREMENTS FOR CAPITAL '.
33. The following title shall be inserted after Title X:
Compensation and options positions'.
Designation of the current title I shall be deleted, including the title.
34. Paragraph 48 of Title II, including the title, is replaced by the following:
Capital requirement for options'.
35. The following title shall be inserted after Section 52:
CAPITAL AMENDMENT '.
36. The following parts, third to fifth, are inserted after Part Two, including the headings and footnotes No 7, 8, 9, 10 and 11:
The amount to be reported in column 060 of this row:
Methods for consolidating data of persons forming part of a regulated consolidation unit
The controlling trader or financial holding company of which the consolidation entity is subject to supervision by the Commission on a consolidated basis (hereinafter referred to as "the controlling entity ') shall use only methods of consolidation according to international accounting standards to consolidate the data of persons that are part of the regulated consolidation entity,
(a) complete for the consolidation of data controlling persons and persons controlled;
(b) proportionate to the consolidation of data by controlling persons and jointly managed persons.
Capital adequacy rules on a consolidated basis
(1) For the purpose of defining the solvency rules of the controlling persons, the appropriate procedure shall be followed in accordance with Part Two, unless otherwise specified in that Part.
(2) A person who is part of a consolidation unit and whose inclusion in the consolidation unit is not appropriate or may distort the results of supervision on a consolidated basis [Paragraph 152 (2) (c) of the Act] is a controlled person or a jointly managed person, if it can be demonstrated that:
(a) the controlled person or jointly managed person is established in a country where there are legal barriers to the provision of the necessary information or obstacles to the transfer of profits;
(b) the value of the assets of an individual controlled person or an individual jointly controlled person is less than 1%, including the total value of the assets of the controlling person. However, where the total of the assets of such persons exceeds 1% of the total value of the assets of the controlling person, those controlled persons and jointly controlled persons shall be included in the regulated consolidation unit,
(c) the share of the controlled person, associated company or jointly controlled person is held with the intention of selling in the near future; if it fails to sell within one year of the acquisition of the holding, that exemption shall not apply and the controlled person or jointly managed person shall be included in the regulated consolidation unit; or
(d) the controlled person or jointly managed person is in liquidation or is declared bankrupt on his property.
(3) The capital of a regulated consolidation entity is the sum of the capital derived from the consolidated balance sheet compiled by the controlling entity for a regulated consolidation entity, defined in accordance with Paragraph 7 (5) and the part of the minority equity capital (credit balance) comprising the share of minority interests in:
(a) paid-up capital;
(b) paid-up emission premium,
(c) mandatory reserves;
(d) other reserves created from profits, with the exception of those assigned to them;
(e) the retained earnings from previous periods after tax, where the profit of the periods concerned has been confirmed by the auditor in the audit of the accounts, the members or the general meeting have approved the annual accounts and decided on the amount of the profit not distributed;
(f) the economic result in the approval procedure where this result agreed by the auditor represents the profit to which the expected dividends and other payments from the expected profit distribution were reflected;
reduced by the share of minority shareholders in equity (debit balance), including their share of outstanding losses from previous years, as well as the profit or loss in the approval procedure, if that result constitutes a loss.
Capital requirements
(1) Capital requirement means the value in Czech crowns calculated in accordance with Article 7 (5) and expressing the need for an adequate capital coverage of the risks of a regulated consolidation unit. The capital requirement is composed of capital requirement A and capital requirement B.
(2) Capital requirement A is equal to the own funds requirement for the credit risk of the investment portfolio under Part Two, Title 3.
(3) Capital requirement B is equal to the sum of capital requirements
(a) the credit risk of the trading book as referred to in Part Two, Title Four;
(b) the exposure risk of the trading book under Title Five of Part Two;
(c) the general interest rate risk referred to in Part Two, Title 6;
(d) the general equity risk referred to in Part Two, Title 7;
(e) the currency risk referred to in Part Two, Title Eight; and
(f) the commodity risk referred to in Part Two, Title Nine.
The own funds requirement for options is added to the own funds requirement for specific and general interest rate risk, the own funds requirement for specific and general equity risk, the own funds requirement for currency risk and the own funds requirement for commodity risk.
(4) For the consolidation of the interest and equity positions of the trading book instruments and the currency and commodity positions of the investment and trading book instruments of the controlling person and the controlled person or jointly managed undertaking, the controlling person may use the method of full consolidation or proportional consolidation where:
(a) the controlling person manages the risks on a consolidated basis;
(b) the controlled person or jointly managed person is required to comply with and comply with a set capital adequacy limit on an individual basis in accordance with a specific law or foreign law corresponding to European Community law; and
(c) the law of the country of residence of the controlling person, the controlled person or the jointly managed undertaking does not prohibit the transfer of individual capital components within a regulated consolidation unit.
(5) Where the criteria referred to in paragraph 4 are not met, the aggregation method shall be used for determining the capital requirements for the interest, equity and credit risk of the trading book or the currency and commodity risk of the investment and trading book of the regulated consolidation entity plus.
(6) The method of aggregation plus means the method by which the own funds requirements established on an individual basis under Part Two or by foreign law corresponding to the relevant requirements of European Communities' law, controlled by a person and jointly controlled by a person are added together. Compensation for long and short positions of instruments is not possible. The aggregation plus method shall not be considered as a consolidation method.
Capital adequacy limit on a consolidated basis
(1) The capital adequacy of the controlling party on a consolidated basis is equal to 8% and the share in which the numerator is the capital of the regulated consolidation entity pursuant to § 53b (3) and the denominator is the sum of the capital requirement A of the regulated consolidation entity pursuant to § 53c (2) and the capital requirement B of the regulated consolidation entity pursuant to § 53c (3). Where the aggregation method plus Article 53c (5) and (6) has been applied, the denominator shall indicate the sum of the capital requirement A of the regulated consolidation unit and the sum of the capital requirements B of the persons that are part of the regulated consolidation unit that have been established on an individual basis.
(2) The capital adequacy of the controlling party on a consolidated basis of the unused Tier 3 shall be equal to 8% and the proportion in which the numerator of the unused Tier 3 of the regulated consolidation entity is the sum of the capital requirement A of the regulated consolidation entity and the capital requirement B of the regulated consolidation entity. Where the aggregation method plus Article 53c (5) and (6) has been applied, the denominator shall indicate the sum of the capital requirement A of the regulated consolidation unit and the sum of the capital requirements B of the persons that are part of the regulated consolidation unit that have been established on an individual basis.
(3) The capital adequacy of the controlling party on a consolidated basis referred to in paragraph 1 must be at least 8%.
Limits on net investment portfolio exposures on a consolidated basis
(1) The net exposure of the investment portfolio (Paragraph 13 (9)) of the regulated consolidation unit to one person or to one group of connected economic persons (Paragraph 14), with the exception of the persons referred to in paragraph 2, may not exceed 25% of the capital of the regulated consolidation unit under Paragraph 53b (3), reduced by the applied Tier 3 of the regulated consolidation unit under Paragraph 7 (12).
(2) The net exposure of the investment portfolio of a regulated consolidation entity may not exceed 20% of the capital of a regulated consolidation entity in accordance with Article 53b (3), less the use of Tier 3 of the regulated consolidation entity in respect of:
(a) the person who is linked to the trader (7);
(b) an economically linked group of persons in which at least one person is linked to the trader;
(c) an economically linked group of persons with a qualifying participation in at least one person by a person connected to a trader;
(d) legal persons in which the trader has a qualifying holding; or
(e) an economically linked group of persons in which at least one person is a legal person in which the trader has a qualifying holding.
(3) The sum of the net exposures of the investment portfolio of a regulated consolidation entity to persons or groups of connected entities referred to in paragraphs 1 and 2, in respect of which the net exposure amounts to 10% or more of the capital of a regulated consolidation entity reduced by the applied Tier 3, may not exceed 800% of the capital of a regulated consolidation entity as referred to in Article 53b (3), minus the applied Tier 3. Where a person is classified in more than one group of connected persons, for the purposes of this limit, the controlling person shall include the net exposure of the investment portfolio to that person in only one group of connected clients. For the purposes of monitoring a limit of 800%, the controlling person shall also include the net exposure of the investment portfolio to a group whose volume has fallen below 10% of the capital of the regulated consolidation entity under Paragraph 53b (3), reduced by the applied Tier 3.
(4) The net exposure limits of the investment portfolio of a regulated consolidation entity are not subject to the exposure to the entities referred to in Article 15 (4).
SCOPE, METHOD AND PERIOD FOR THE TRANSMISSION OF INFORMATION
CREDIT RISK
(1) A trader who respects the capital adequacy on an individual basis shall, without undue delay, report to the Commission a decline in capital adequacy pursuant to Section 53 below 8% and an excess of the limits on the net exposure of the investment portfolio of the trader under Section 15.
(2) The information referred to in paragraph 1 shall be sent by the trader to the Commission, together with the standardised data form intended to report the capital adequacy and the involvement of the trader on the date of the decline in the capital adequacy and, where appropriate, exceeding the limits on the net exposure of the investment portfolio and the accounting documents and dates required for the calculation of the capital adequacy and net exposure of the investment portfolio on that date.
PERSONS INCLUDED IN CONSOLIDATION ENTITIES
Contents
Čl. I
㤠1
„ČÁST DRUHÁ
„HLAVA I
„HLAVA II
„HLAVA III
„HLAVA IV
„HLAVA V
„HLAVA VI
„Díl 1
„Díl 2
„Díl 3
„HLAVA VII
„HLAVA VIII
„HLAVA IX
„Díl 1
„Díl 2
„HLAVA X
„Díl 1
„Díl 2
„HLAVA XI
„ČÁST TŘETÍ
§ 53a
§ 53b
§ 53c
§ 53d
§ 53e
ČÁST ČTVRTÁ
HLAVA I
§ 53f
HLAVA II
§ 53g
§ 53h
§ 53i
ČÁST PÁTÁ
HLAVA I
§ 53j
§ 53k
HLAVA II
§ 53l
„ČÁST ŠESTÁ
Čl. II
Čl. III
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Regulation Information
| Citation | Decree No. 105 / 2006 Coll., amending Decree No. 262 / 2004 Coll., on rules for the calculation of the capital adequacy of a non-bank trader on an individual basis, as amended by Decree No. 383 / 2004 Coll. |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.03.2006 |
|---|---|
| Effective from | 31.03.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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