Decree of the Ministry of Finance No. 120 / 1997 Coll.
Decree of the Ministry of Finance amending and supplementing Decree of the Ministry of Finance No. 87 / 1993 Coll., on the Brokerage Test
Valid
Order
Effective from 01.07.1997
Text versions:
01.07.1997
29.05.1997
120
DECLARATION
Ministry of Finance
of 7 May 1997
amending and supplementing Decree of the Ministry of Finance No. 87 / 1993 Coll., on the Brokerage Test
The Ministry of Finance provides according to § 49 paragraph 7 of the Act of the Czech National Council No. 591 / 1992 Coll., on securities:
Decree of the Ministry of Finance No. 87 / 1993 Coll., on the Brokerage Test, is amended as follows:
1. Paragraph 1 (1) (a), including footnote 1a, reads as follows:
"(a) securities and rights1a) and related legislation;
(1a) Sections 14 and 15 of Act No. 591 / 1992 Coll., on Securities, as amended by Act No. 152 / 1996 Coll. '
2. the following point (d) shall be added to Article 1 (1):
"(d) generally applicable securities and rights trading practices."
3. the following point (e) shall be added to Article 1 (4):
"(e) the trading, valuation and settlement of rights."
4. In Paragraph 2 (2), "CZK 2000 'is replaced by" CZK 4000'.
5. In Article 2, the following paragraph 4 is inserted after paragraph 3:
"(4) The application for a test shall be submitted on a prescribed form, a model of which is given in Annex 3, which is part of this order. ';
Paragraph 4 shall become paragraph 5.
6.
(1) To carry out the examination, the panel shall invite any tenderer who has submitted an application in due time and on the prescribed application form.
(2) A candidate who, for serious reasons, cannot attend the test within the prescribed time limit and requests its amendment at least 10 working days before the test is carried out may attend the test at an alternate time to be determined by the President of the Commission. In that case, the amount shall not be refunded.
(3) Candidates who do not show up for serious reasons will duly excuse their non-participation and request reimbursement of the amount shall be reimbursed after deduction of the costs already incurred by the organisations responsible for the technical security of the test.
(4) A candidate who does not show up for the test and does not apologize properly is not entitled to take the test at the replacement date or to reimbursement. If the applicant submits a new application, he shall be obliged to repay the amount. ';
7.
The test shall be carried out in the form of a written test (hereinafter referred to as the test), which shall contain 250 questions and shall last a maximum of six hours. ';
8. The second sentence of Paragraph 7 (1) reads: "Questions may not be published; members of the Commission and other persons in contact with questions shall be obliged to keep them secret. ';
9. In Paragraph 8 (2), the words "taking over a number 'are replaced by the words" taking over a number designation'.
10. In Paragraph 11 (3), "at least 300 points' is replaced by" 75% of the most achievable points'.
11. In Annex 1, point 13:
"13. Decree of the Ministry of Finance No. 224 / 1996 Coll., on the calculation of the value of securities held in a mutual fund or assets of an investment fund."
12. the following points 18 and 19 are added to Annex No 1:
"18. Act No. 61 / 1996 Coll., on certain measures against the legalisation of proceeds from crime and amending and supplementing related laws
19. Decree of the Ministry of Finance No. 183 / 1996 Coll., on the fulfilment of the reporting obligation by financial institutions'.
13. In Annex 2, point (b) is added as follows:
'6. Bank accounting principles and financial analysis of banks - focusing on securities. '
14. the following points (e) to (i) are added to Annex 2:
"(e) Basic concepts of rights trading
Derivatives, basic term. Types of derivatives. Options (types, internal and time value, price, implementation price, expiry date, application of options, short and long position, class, series, American and European options). Term stores. The underlying asset of options (shares, index, etc.). The underlying fixed-term trading asset (index, interest rate, etc.). Use of derivatives on capital markets. Trading in securities rights. Market maker function.
(f) Settlement of derivatives transactions
Clearing center functions. Margin and collateral. Terms and methods of settlement of transactions.
(g) Trading of options
Closing transactions. Optional trading position. The leverage effect. Basic position of option. Covered and uncovered options. Basic strategies for trading options. Combined strategies. Arbitration strategy.
(h) Valuation of derivatives
Valuation of options. Estimate of futures prices. Optional valuation models. Characteristics of the Black-Scholes model. Characteristics of the Cox-Ross-Rubinstein model. Delta, gamma, omega, etc. - sensitivity indicators.
i) Trading of derivatives in the Czech Republic
Legislative terms. Exchange implementing regulations (series listing, trading and settlement rules, conditions for admission to the derivatives market). Trading derivatives on the Stock Exchange. Business regulation. Accounting and taxation of derivatives transactions. '
15. The following Annex 3 is inserted after Annex 2:
"Annex No 3 to Decree No 87 / 1993 Coll.
Model
ARRANGEMENTS FOR THE TRADE TEST
"
Transitional provision
Persons who have been certified to carry out a brokerage test before the entry into force of this Order may, within three years of the date of entry into force of this Order, perform an examination demonstrating knowledge of the trading of rights within the scope of the subjects listed in Annex 2 (e) to (i). They shall apply for the examination in accordance with § 2; the amount of the cost of the examination is CZK 2000. The application shall be accompanied by an officially certified copy of the certificate of completion of the brokerage test.
This Decree shall take effect on 1 July 1997.
Minister:
Ing. Coachman CSc. v. r.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 120 / 1997 Coll., amending and supplementing Decree of the Ministry of Finance No. 87 / 1993 Coll., on the Brokerage Test |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.05.1997 |
|---|---|
| Effective from | 01.07.1997 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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