What is Act No. 119 / 2020 Coll.?

Act No. 119 / 2020 Coll., amending certain laws on the regulation of business in the financial market — Law amending certain laws on the regulation of business in the financial market.

When it became Act No. 119 / 2020 Coll. effectiveness?

Act No. 119 / 2020 Coll. became effective 01.05.2020.

Is Act No. 119 / 2020 Coll. still valid?

Yes, Act No. 119 / 2020 Coll. is still valid and effective.

How many times was it Act No. 119 / 2020 Coll. amended?

Act No. 119 / 2020 Coll. has 4 time versions of the text.

Act No. 119 / 2020 Coll.

Law amending certain laws on the regulation of business in the financial market

Valid Law Effective from 01.05.2020

Text versions: 01.05.2020 01.04.2020 24.03.2020

ČÁST PRVNÍ Čl. I „§ 34 § 35 „§ 73m „§ 129b „§ 149b „§ 159a „§ 161b „§ 183 ČÁST DRUHÁ Čl. II ČÁST TŘETÍ Čl. III ČÁST ČTVRTÁ Čl. IV ČÁST PÁTÁ Čl. V ČÁST ŠESTÁ Čl. VI „Díl 3 § 388a § 388b § 388c ČÁST SEDMÁ Čl. VII „HLAVA I § 74 § 75 § 75a § 76 HLAVA II Díl 1 § 77 § 77a § 77b § 77c § 77d § 77e § 77f § 77g § 77h Díl 2 § 78 § 78a § 78b § 78c § 78d § 78e § 78f § 78g § 78h „HLAVA III § 79 § 80 § 81 § 82 § 83 „§ 154 „§ 165a Čl. VIII ČÁST OSMÁ Čl. IX „§ 100 „§ 113 „§ 169a „§ 188 „§ 362a § 362b § 362c § 362d „HLAVA XIX § 531 Čl. X ČÁST DEVÁTÁ Čl. XI „§ 108 ČÁST DESÁTÁ Čl. XII

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119

THE LAW

of 10 March 2020

amending certain laws on the regulation of business in the financial market

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

Amendment to the Capital Market Enterprise Act

Čl. I

Act No. 635 / 2004 Coll., Act No. 100 / 2005 Coll., Act No. 100 / 2005 Coll., Act No. 120 / 2007 Coll., Act No. 156 / 2010 Coll., Act No. 160 / 2010 Coll., Act No. 62 / 2006 Coll., Act No. 70 / 2006 Coll., Act No. 126 / 2008 Coll., Act No. 216 / 2008 Coll., Act No. 230 / 2008 Coll., Act No. 7 / 2009 Coll., Act No. 223 / 2009 Coll.

1. In Article 1 (1), the comma after the word "market 'is replaced by" a' and the words "and the public offer of investment securities' are deleted.

2. In footnote 1, the fourth sentence is deleted.

3. In footnote 2, the first sentence is deleted and at the end of footnote 2, the sentence "Regulation (EU) 2017 / 1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published in the public tender or admission to trading on a regulated market and repealing Directive 2003 / 71 / EC is added to the separate line. '

4. In Paragraph 1 (3), at the end of point (i), "a 'is replaced by" a'; at the end of paragraph, the dot is replaced by "a 'and the following point (l) is added:

"(l) the directly applicable European Union regulation governing the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66).

66) Regulation (EU) 2017 / 1129 of the European Parliament and of the Council. '

5. In Paragraph 2 (1), at the end of point (w), the word "a 'is deleted; at the end of point (x), the dot is replaced by the word" a' and the following point (y) is added:

"(y) by intermediation of transactions in investment vehicles, an activity carried out in an entrepreneurial manner consisting of:

1. offering the possibility to negotiate a transaction in investment vehicles or provide an investment service on behalf of an investment service provider or on behalf of a client;

2. the submission of proposals to negotiate trade in investment vehicles or the provision of investment services on behalf of an investment service provider or on behalf of a client;

3. carrying out preparatory work to negotiate trade in investment vehicles or to provide investment services on behalf of an investment service provider or on behalf of a client, including making recommendations leading to the negotiation of such a transaction or service;

4. the negotiation of trade in investment vehicles or the negotiation of the provision of an investment service on behalf of an investment service provider or on behalf of a client; or

5. assist in the exercise of rights and performance of obligations in the negotiation of trade in investment instruments or in the provision of investment services on behalf of an investment service provider or on behalf of a client. ';

6. in Article 2a (1) (i):

"(i) another person who operates on the financial market on the basis of an authorisation granted by a financial supervisory authority, with the exception of:

1. the tied agent under this law,

2. the tied agent and consumer credit intermediary in accordance with the law governing consumer credit,

3. a tied agent under the Act governing supplementary pension savings; and

4. the tied agent and supplementary insurance intermediary under the law governing the distribution of insurance and reinsurance, "

7. In the first sentence of Article 2a (3), the words "paragraphs 1 and 'are replaced by the words" paragraphs 1 or' and in the second sentence, the words "second 'are replaced by the words" first'.

8. Paragraph 4 (4) reads as follows:

"(4) For the purposes of this Act, the provision of an investment service for the acceptance and transmission of orders relating to investment instruments referred to in paragraph 2 (a) shall also be considered as a brokering of transactions in investment instruments. ';

9. In Paragraph 10 (1) of the part of the sentence behind the semicolon, the words "acting as' are replaced by the words" forming '.

10. in the first sentence of Article 10d (3), the word "working" shall be inserted after the word "50."

11. in Article 14a, the following paragraph 3 is added:

"(3) Paragraph 2 shall not apply to a person who, in the context of the provision of investment services, deals exclusively with the persons referred to in § 2a (1) or (2) or in § 2b. ';

12. In Paragraph 15 (4) of the introductory part of the provision, the words "is admissible 'are replaced by the words" is admissible under paragraph 3, only'.

13. in Article 15d (1), at the end of point (d), the word "a" shall be replaced by a comma, at the end of the paragraph the dot shall be replaced by "a" and the following point (f) shall be added:

"(f) the customer compensation scheme and the deposit claims insurance scheme relating to the customer's assets, including the amount and extent of the cover provided by the customer compensation scheme; the securities dealer shall inform the customer, at his request, of the conditions of compensation, the procedure for claiming the right to compensation and the payment thereof. ';

14. In the first sentence of Article 17 (2), the words "which include the receipt, transmission or execution of a client order 'are replaced by the words" provided to the customer'.

15. in Article 24 (5), at the end of point (d), the word "a" is replaced by a comma, at the end of the paragraph the dot is replaced by the word "a" and the following point (f) is added:

"(f) comply with the conditions laid down in Article 14a (2)."

16. in Paragraph 25 (1):

"(1) A foreign person authorised by a supervisory authority of another Member State of the European Union to provide investment services may, in accordance with European Union law, provide investment services on the territory of the Czech Republic without the location of a branch of an investment service to which the supervisory authority of the home State is authorised, temporarily or occasionally, not for investment services provided to professional customers under Section 2a, which may also be provided on a permanent basis. The Czech National Bank shall inform this person without undue delay that it has received data from the supervisory authority of the home State concerning the intended provision of investment services by that person in the Czech Republic."

17. in § 28a (1) (g) (3):

'3. ensuring that the persons with whom they carry out the activities of that branch are fully competent, trustworthy and have the necessary knowledge, skills and experience; ';

18. in Article 30 (1) (g) (3) and Article 30 (2) (d) (3), the words "professionally qualified" are replaced by the words "have the necessary knowledge, skills and experience."

19. in Paragraph 30 (2) (f):

"(f) that person shall have a data box set up by the undertaking; in the case of a request by a natural person who is not yet an entrepreneur, that person shall request the establishment of a data box of the undertaking's natural person without undue delay, no later than 30 days after the date on which the decision to grant the investment intermediary's authorisation becomes final; and ';

20. Paragraph 30b (4) reads:

"(4) The authorisation for the activity of an investment intermediary shall cease to exist:

(a) the expiry of the period of authorisation referred to in paragraph 1, if no extension is made pursuant to paragraph 2;

(b) the death of a natural person;

(d) the granting of an authorisation to an investment intermediary for the activities of a securities dealer; or

(e) withdrawal of authorisation for the activity of an investment intermediary (Section 145). ';

21. In Paragraph 32, at the end of paragraph 5, the sentence "Paragraph 14a (2) shall not apply to a person who, in the context of the provision of investment services, deals exclusively with the persons referred to in § 2a (1) or (2) or in § 2b."

22. in Article 32a (1) (a), "h" is replaced by "i";

23. The heading of Part Four reads: "CERTAIN PROVISIONS CONCERNING THE PROSPECT."

24. In Part Four, the title and title of Title I are deleted.

25.

„§ 34

Liability for the contents of the prospectus

(1) The accuracy and completeness of the information contained in the prospectus are the responsibility of the person who compiled the prospectus and the guarantor, provided that it is stated in the prospectus and guaranteed the accuracy of the data. Where a prospectus has been drawn up jointly by several persons, each person shall be responsible for the contents of the prospectus. The prospectus shall include details of the persons responsible for the correct drawing up of the prospectus and their declaration that, to the best of their knowledge, the information contained in the prospectus is correct and that no facts which could alter the meaning of the prospectus have been omitted.

(2) The accuracy of the information referred to in the summary of the prospectus pursuant to the directly applicable regulation of the European Union governing the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66) shall be the responsibility of the person referred to in paragraph 1 only if the summary of the prospectus is misleading or inaccurate in its joint interpretation with other parts of the prospectus, or if the summary of the prospectus does not contain the required information in its joint interpretation with other parts of the prospectus.

(3) The accuracy and completeness of the information contained in the registration document or the universal registration document shall be the responsibility of the persons referred to in paragraph 1 if such a document is an integral part of the approved prospectus.

(4) Where the law uses the term "prospectus," it means a prospectus in accordance with the directly applicable regulation of the European Union governing the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66).

§ 35

Reporting mechanism

A person subject to obligations or prohibitions under the directly applicable European Union law governing a prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66), in the absence of a securities dealer, a regulated market operator or a data reporting service provider, shall establish, maintain and apply a mechanism to report a breach or imminent breach of that directly applicable regulation by analogy with § 12i (1). ';

(26) footnote 7 is deleted.

27. § 35a and 35b are deleted, including the title.

28. In Part Four, Title II, including the title and footnote 8, is deleted.

29. In Paragraph 39 (8) of the introductory part of the provision, "4 'is replaced by" 2'.

30. in Article 48 (1) (i) (3), the words "set out in Paragraph 57," shall be replaced by the words "set out in §" and, at the end of the text of the point, the words "and in the directly applicable European Union law governing the prospectus to be published in the public tender or admission to trading on a regulated market (66)" shall be added.

31. in § 50c (2), the text "§ 63a" is replaced by "§ 73m."

32. in Article 56 (5), the second and last sentences are deleted;

33. Paragraph 57 shall be deleted, including the title.

34. § 63a is deleted;

35. in Paragraph 65 (1) (a), the number "57" is replaced by the words "under the directly applicable regulation of the European Union governing the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66)."

36. in Paragraph 69 (6), the second sentence is deleted;

37. In Article 71, the sentence "The multilateral trading system operator shall inform the Czech National Bank of the content of the contracts referred to in Article 50g (1) shall be added at the end of paragraph 4."

38. The heading of Section 73 is deleted.

39. In Paragraph 73, the current text becomes paragraph 1 and the following paragraphs 2 and 3 are added:

"(2) For multilateral trading system operators, Sections 50a to 50e, Section 50f (1) and (2) and Section 50g shall apply mutatis mutandis.

(3) An operator of a multilateral trading venue shall check and enforce compliance with the obligations under Article 50g (1) by securities dealers. ';

40. In § 73f, at the end of paragraph 6, the sentence "The organised trading venue operator shall inform the Czech National Bank of the content of the contracts under § 50g (1)."

41. in the first sentence of Paragraph 73g (6), the words' admitted to trading on a European regulated market 'shall be deleted.

42.In § 73g (6), the second sentence is deleted.

43. The heading of Section 73h is deleted.

44. In Paragraph 73h, the current text becomes paragraph 1 and the following paragraphs 2 and 3 are added:

"(2) For operators of an organised trading venue, Sections 50a to 50e, Sections 50f (1) and (2) and Section 50g shall apply mutatis mutandis.

(3) An operator of an organised trading venue shall check and enforce compliance with the obligations under Article 50g (1) by securities dealers. '.

45. In Part Five, the following Section 73m is inserted after Section 73l:

„§ 73m

Trading venue participants shall be required to carry out appropriate testing of algorithms to ensure that algorithmic trading systems cannot create trading conditions that undermine or contribute to the creation of such conditions. ';

46. In Paragraph 91, the words "securities held in the Ministry's register 'are replaced by the words" government bonds'.

47. In Article 116 (1), the words "in accordance with Article 3 (1) (25) of Regulation (EU) No 596 / 2014 of the European Parliament and of the Council 'shall be inserted after the words" powers'.

48. In Article 118, the sentence "The issuer shall draw up an annual report and a consolidated annual report for the financial year beginning in 2020 or later, in accordance with the directly applicable European Union Regulation amending the uniform electronic format for submission of the report 67) is inserted at the beginning of paragraph 2. '.

Footnote 67 reads:

"(67) Commission Delegated Regulation (EU) of 17 December 2018 supplementing Directive 2004 / 109 / EC of the European Parliament and of the Council with regard to regulatory technical standards for the specification of the single electronic reporting format. ';

49. in Article 119c (2) (a), the words "by this law or by a comparable law of a Member State of the European Union" shall be replaced by the words "directly applicable European Union law governing the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market66)."

50. In the second sentence of Article 122a (2), the word "paragraph 'is replaced by" § 122 (2)'.

51. in Article 127d (2), the words "implementing the Directive of the European Parliament and of the Council governing the prospectus and the Directive of the European Parliament and of the Council governing transparency requirements relating to issuer information" shall be replaced by the words "introducing a mechanism to determine the equivalence of accounting standards used by third country issuers of securities."

52. The following Section 129b is inserted after Section 129a above the heading above Section 130:

„§ 129b

(1) At the latest by the end of the calendar month following the end of the calendar year, the securities dealer shall submit to the Guarantee Fund information on the amount of the customer's assets at the end of the last working day of the year in question for which the Guarantee Fund would provide compensation calculated in accordance with Paragraph 130 (9) if it is not issued by the securities dealer. The Guarantee Fund shall provide this information to the Ministry without undue delay after receiving it.

(2) The obligation referred to in paragraph 1 shall also apply to an investment company and a foreign person referred to in Article 132a (1) and to a foreign person having its registered office or registered office in a State which is not a Member State of the European Union which provides investment services in the Czech Republic.

(3) The details, form, manner and structure of the fulfilment of the information obligation referred to in paragraph 1 are laid down by the Ministerial Order. "

53.In Article 135 (1), points (h) and (i) are deleted.

Points (j) to (zb) shall be renumbered as points (h) to (z).

54. In Paragraph 135, at the end of paragraph 1, the dot is replaced by a comma and the following point (after) is added:

"(za) a person subject to obligations or prohibitions under the directly applicable European Union law governing a prospectus to be published in the public tender or admission to trading on a regulated market66)."

55. in Article 135a (6) (c) and (d) and in paragraph 7, "9" is replaced by "5."

56. in Article 135b (2), "14" is replaced by "15."

57. in Paragraph 136 (1) (m):

"(m) to impose measures

1. Under Article 63 (2) (a) to (c) of Regulation (EU) No 909 / 2014 of the European Parliament and of the Council,

2. pursuant to Article 22 (4) (a) to (c) of Regulation (EU) 2015 / 2365 of the European Parliament and of the Council,

3. pursuant to Article 24 (2) (a), (b) or (d) of Regulation (EU) No 1286 / 2014 of the European Parliament and of the Council,

4. pursuant to Article 42 (2) (a) to (e) of Regulation (EU) 2016 / 1011 of the European Parliament and of the Council,

5. pursuant to Article 32 (2) (d) of Regulation (EU) 2017 / 2402 of the European Parliament and of the Council,

6. in accordance with Article 32 (1) (a), (d) to (h) and (j) to (m) of Regulation (EU) 2017 / 1129 of the European Parliament and of the Council, ';

58. in Article 137 (4), the words "Article 42 of Regulation (EU) No 600 / 2014 of the European Parliament and of the Council" shall be inserted after the words "575 / 2013";

59. in Article 146 (7), the words "pursuant to Article 157" shall be deleted;

60. Paragraph 149b, including the title, reads:

„§ 149b

Transfer of powers under the European Union Regulation on a prospectus to be published when securities are offered or admitted to trading on a regulated market

Responsibility for damage caused by a decision or maladministration by the supervisory authority of another Member State of the European Union in the exercise of supervision instead of the Czech National Bank in the area covered by the directly applicable European Union law governing the prospectus to be published in the public tender or admission of securities to trading on a regulated market (66) shall be assessed as the responsibility of the State under the law governing liability for damage caused by the exercise of public authority. '

61.Paragraph 149e (3) is deleted.

62. In Paragraph 151 (1) (za), the words "for the purposes of this Act" are deleted.

63.In Paragraph 152 (5), the reference to footnote 37 is deleted.

64. in Paragraph 154, the following paragraph 3 is inserted after paragraph 2:

"(3) Paragraph 2 shall apply mutatis mutandis to persons who are subsidiaries pursuant to Article 4 (1) (16) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council operating a securities dealer, a foreign controlling securities dealer, a foreign controlling bank, a financial holding person, a mixed financial holding person or a mixed holding person and who are not also included in supervision on a consolidated basis. ';

Paragraph 3 shall become paragraph 4.

65.In Article 157 (1) (h) and Article 162 (1) (g), the words "regulated market" are replaced by the words "trading system" and the words "§ 63a" are replaced by "§ 73m."

66. Paragraph 157 (3) reads as follows:

"(3) A natural person commits an offence by not introducing, maintaining or applying a reporting mechanism pursuant to § 124 and § 12i (1). '

67. In Article 159 (1), the words "Article 8b," shall be deleted and the words "as amended by the European Parliament and the Council (EU) No 462 / 2013" shall be replaced by "as amended."

68. In Articles 159 (2) to (4), 161 (1), 174 (2) and (3), 175 (1), 176 (1) and 178 (1), the words "directly applicable" are replaced by the words "directly applicable."

69. Paragraph 159 (4) is deleted.

Paragraph 5 shall become paragraph 4.

70. In Article 159 (4), "3 or 4 'is replaced by" or 3';

71. The following Section 159a is inserted after Section 159:

„§ 159a

Transfers of natural persons consisting of infringements of the European Union Regulation on improving securities settlement in the European Union and CSDs

(1) A natural person commits an offence by failing to comply with one of the obligations or by violating one of the prohibitions set out in the directly applicable European Union law on improving securities settlement in the European Union and the CSDs 51).

(2) A fine may be imposed for the offence referred to in paragraph 1 until:

(a) 140 000 000 CZK, or

(b) twice the amount of unlawful benefit obtained by committing an offence where the amount of unlawful benefit can be ascertained. "

72. In Article 161 at the end of the text of paragraph 1 and in Article 178 at the end of the text of paragraph 1, the words "or infringes a measure adopted pursuant to Article 40 to 42 of Regulation (EU) No 600 / 2014 of the European Parliament and of the Council 'shall be added.

73. In Part Ten, Title III, Part 2, the following Section 161b is inserted after Section 161a:

„§ 161b

Transfers of natural persons consisting of an infringement of the European Union Regulation on a prospectus to be published in the public tender or admission to trading on a regulated market

(1) A natural person commits an offence by failing to comply with any of the obligations or infringements of any of the prohibitions referred to in Articles 3, 5, 6, 7 (1) to 11, 8, 9, 10, 11 (1) or (3), 14 (1) or (2), 15 (1), 16 (1) to (3), 17, 18, 19 (1) to (3), 20 (1), 21 (1) to (4) or 7), 22 (2) to (5), 23 (1) to (3) or 27 of Regulation (EU) 2017 / 1129 of the European Parliament and Council Regulation (EU).

(2) A fine may be imposed for the offence referred to in paragraph 1 until:

(a) 18 228 000 CZK, or

(b) twice the amount of the unjustified benefit obtained by committing the offence, if the amount of the unlawful benefit can be ascertained and exceeded by the amount of the fine thus determined, 18 228 000 CZK. "

74. Paragraph 162 (3) reads as follows:

"(3) Legal or business natural person commits an offence by not introducing, maintaining or applying a reporting mechanism pursuant to § 124 and § 12i (1). '

75. in Article 163 (6), "10 000 000" is replaced by "5 000 000."

76. In Paragraph 166 (1) (f), the word "diary" is replaced by the words "registration of received and transmitted orders or registration of contracts."

77.In Article 166 (1) (j), "7" is replaced by "4."

78.In Paragraph 168 (1) (f), "2" is replaced by "3."

79.In Article 168 (2), the following points (l) to (r) are inserted after point (k):

"(l) shall not ensure that its systems comply with the requirements of Sections 73 (2) and 50a;

(m) fails to fulfil any of its obligations in the suspension or restriction of trade pursuant to Articles 73 (2) and 50b;

(n) fails to fulfil any of the obligations under Sections 73 (2) and 50c in algorithmic trading;

(o) fails to fulfil any of the obligations in the provision of direct electronic access pursuant to Sections 73 (2) and 50d;

(p) shall not ensure that the remuneration set by it complies with the requirements laid down in Articles 73 (2) and 50e;

(q) fails to fulfil any of the listing obligations under § 73 (2) and § 50f;

(r) does not establish, maintain or apply the procedures laid down in Articles 73 (2) and 50g (2), ';

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Regulation Information

Citation	Act No. 119 / 2020 Coll., amending certain laws on the regulation of business in the financial market
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	24.03.2020
Effective from	01.05.2020
Effective until	-
Status	Valid

Legal Areas: Securities Finance Commercial law Businessman, Company

The regulation text is for informational purposes only.