Decree No. 14 / 2018 Coll.
Order on payment systems with settlement finality
Valid
Effective from 01.02.2018
14
DECLARATION
of 24 January 2018
on settlement finality payment systems
The Czech National Bank provides pursuant to § 263 of Act No. 370 / 2017 Coll., on payment, for implementation of § 118 (4), § 119 (4) and § 122 (5) of the Act:
Subject matter
This decree regulates
(a) details of the details of the application for authorisation to operate a payment system with irrevocability of settlement, its formats and other technical formalities;
(b) details of the details of the notification of changes to the information contained in the application for authorisation to operate a payment system with irrevocable settlement, including the annexes on the basis of which the authorisation was granted, its formats and other technical specifications; and
(c) the extent, form, time and method of providing information by the payment system operator with irrevocability of settlement to the Czech National Bank.
Definition of terms
For the purposes of this decree:
(a) proof of integrity issued by a foreign State, a document similar to the extract from the Register of Penalties which may not be more than 3 months old, issued by a foreign State;
1. where a natural person is a national citizen as well as a foreign State in which a natural person has remained continuously for more than 6 months over the last 3 years; or
2. in which a legal person has, or has, its registered office in the last 3 years, as well as a foreign State in which a legal person has, or has, a branch in the last 3 years, provided that the law of that State regulates the criminal liability of legal persons;
(b) the evidence of integrity of the document of integrity issued by a foreign State, the declaration of full competence of the natural person, the declaration containing the information necessary to measure the extract from the register of punishments of the natural person, and the data and documents relating to the person's current activities over the last 10 years, in particular on:
1. the imposition of administrative penalties in connection with the performance of employment, function or business activities;
2. a declaration of bankruptcy or that bankruptcy has been refused due to a lack of assets;
3. suspension or withdrawal of authorisation for business or other activities;
4. refusal of the consent of a court or administrative authority to elect a person to office in the elected bodies or to function in which a person has been appointed or otherwise called upon, or to acquire a qualified participation or control of a person, where such consent has been required;
5. exclusion from the professional chamber, association or association of persons working in the financial market;
(c) by a regulated institution, a bank, a savings and credit cooperative, a securities dealer, an insurance undertaking, a reinsurance undertaking, a payment institution, an electronic money institution, a payment account information manager or another person operating on the financial market supervised in the State of its registered office;
(d) financial statements
1. the annual reports and accounts for the last 3 financial years or for the period during which the applicant carries on business, if that period is less than 3 financial years; where the applicant is part of a consolidation unit, also consolidated annual reports and financial statements for the same period; if, under the Accounting Act, the accounts are to be audited by the auditor, this means the accounts thus audited,
2. proof of income for the last 3 years, of assets and debts in the case of a natural person;
(e) an information system of a functional unit or part thereof ensuring a targeted and systematic information activity; Each information system shall include data organised in such a way as to enable them to be processed and made available, operational data and tools to enable information activities to be carried out,
(f) the business plan actually envisaged and the real economic calculations supported by the plan for the first 3 years of activity, within the scope of the accounts data under the Accounting Act, together with a commentary on its individual items, which always contains the basic bases on which the business plan is based and a justification for the consistency of the quantitative data of the plan and the reality of the planned results of the activity;
(g) the strategic objective of the project which includes:
1. the period during which the qualifying participation is to be held or the payment system with irrevocability of settlement is to be controlled;
2. anticipated changes to the level of qualifying participation in the short and long term;
3. the estimated level of involvement in the management of the payment system with irrevocable settlement;
4. support for a payment system with its own resources irrevocable, where necessary for the development of activities or for dealing with a deteriorating financial situation;
5. anticipated changes in the activity of the payment system with irrevocability of settlement of the method of financing further development, profit-sharing policy, rules on risk-taking, staffing of managers, strategic development and distribution of funds and loss-making policies where the qualifying holding exceeds a 20% share of the capital or voting rights;
(h) details of the person
1. in the case of a legal person, the commercial firm, or the name, registered office and identification number of the person, if any,
2. in the case of a natural person, the name and surname, the birth number, the date of birth, the address of residence in the form of a street, the descriptive number, the municipality, the part of the municipality, the postal code and the State; the business name, registered office and identification number of the person, if assigned;
(i) data on persons with close links
1. details of the person for each person with close links; where a person with close links is a foreign person with a registered office in another Member State, also an indication of whether he is a person who is to be authorised by the supervisory authority of another Member State to act as a regulated institution or whether he is a controlling person of that person;
2. a description of the structure of the group and the way in which it is linked with the graphic representation of the relationships between the individual closely linked persons, indicating the subject matter of their activities;
3. where a person with a close link is a person with a registered office in a Member State, also an analysis containing a comparison of the relevant legislation to demonstrate whether the legislation of that State and the manner in which it is applied, including its enforceability, prevents the effective exercise of supervision of the applicant;
(j) data on professional experience
1. information on the type of professional experience;
2. an indication of the person for whom professional experience is or has been carried out;
3. a description of the work classification and, in the event of the importance of the practice for the operation of a payment system with irrevocable settlement, a description of the activity carried out, including the scope of the powers and responsibilities associated with that activity and the number of persons managed;
4. the definition of the duration of the activity referred to in point 3; and
5. consent to the performance of a work assignment required by other legislation, where necessary;
(k) data on education
1. the name and type or type of educational institution, the study programme, the focus of the study programme, the duration of the study programme, the manner and date of completion of the study, any academic degrees obtained,
2. an overview of courses, traineeships and study visits with significance for the functioning of the payment system with irrevocability of settlement, indicating the year of completion, focus, duration and, where appropriate, academic degrees obtained.
Details of the details of the application for authorisation to operate a payment system with irrevocable settlement
(1) The details of the application for authorisation to operate a payment system with irrevocability under the Payment Act are information on the applicant and information relating to the activity of the payment system operator with irrevocability of settlement and the documents containing that information.
(2) The information on the applicant and the documents containing it are:
(a) social contract, charter or statutes;
(b) the amount of the initial capital;
(c) financial statements, if they are already a legal person, and
(d) a list of applications for annulment of decisions of the applicant's highest authority which, at the date on which the application was lodged, have not been definitively brought to an end, where such applications have been made and where such proposals could have a significant impact on the applicant's continued functioning.
(3) Information relating to the operation of the payment system with irrevocability of settlement and the documents containing that information are:
(a) a business plan;
(b) a strategy for the development of the intended payment system with irrevocable settlement, in particular in relation to the proposed business plan and the medium-term financial objectives;
(c) a description of the rules governing access to risks, which shall include at least:
1. a proposal for an organisation with a definition of the scope and decision-making powers within which the functions whose performance is incompatible and procedures to avoid a potential conflict of interest shall be defined,
2. strategic and operational management principles;
3. the principles of the internal control system,
4. a description of the limitation of systemic risk;
5. a description of the liquidity risk limitation;
6. the expected number of employees who will ensure the planned activities of the payment system with irrevocable settlement and procedures for the organisational security of individual activities, including the identification of the communication channels to be received by the Czech National Bank pursuant to Section 126 (5) of the Payment Act,
7. the proposal for technical security of individual activities, including an appropriate accounting system and statistical accounting systems and security principles, including security principles for the information system;
8. control and security measures to minimise security and operational risks, including the security and verification of means of transmission of information, the risk of data damage, the risk of fraud, the risk of unauthorised access and the risk of leakage or the unauthorised use of personal data and other sensitive information relating to payment system participants with settlement finality,
9. Analysis of individual types of crisis situations, including procedures for resolving them and defining responsibility for such situations;
(d) a description of the object, scope and manner of conduct of another business, where a payment system with irrevocability of settlement carries out or intends to carry out a business activity other than the operation of a payment system with irrevocability of settlement, the expected effects of that business on the applicant's business activity, in particular in terms of material, personnel and organisational provision of another business, an analysis of the different types of crisis situations in the conduct of a business which may adversely affect the proper operation of the payment system with irrevocability of settlement, and procedures for dealing with such situations;
(e) the rules of the payment system with irrevocability of settlement; and
(f) a list of expected participants in the payment system with irrevocable settlement, which shall always include the business name, registered office and identification number of each participant in the payment system with irrevocable settlement.
(4) Information on the managers and persons proposed to lead the payment system operator with irrevocable settlement and the documents containing this information are:
(a) a list of the managers, indicating their duties;
(b) details of the person for each manager;
(c) information on professional experience and training of any management person who actually manages the operation of a payment system with irrevocable settlement; and
(d) evidence of credibility for each management person.
(5) Information on persons with qualified participation in the applicant and persons with close links with the applicant and the documents containing that information are:
(a) a list of persons who have qualified participation in the applicant and persons who have qualified participation in the applicant by acting in agreement with another person, including graphically illustrated relations between those persons, indicating the amount of the participation in the applicant, or indicating and describing any other form of application of a significant influence on the management of the applicant, a strategic intention, and, for persons acting in agreement, the fact on the basis of which the action takes place;
(b) a list of persons who are members of the statutory body of each person referred to in (a);
(c) evidence of credibility for each person referred to in (a) and each person who is a member of the statutory authority of each person referred to in (a);
(d) a document of entitlement to the business of each person referred to in point (a) which may not exceed 3 months;
(e) the financial statements of each person referred to in (a); and
(f) details of persons closely linked to the applicant.
(6) Where a person with a qualified participation in an applicant as referred to in paragraph 5 (a) is a person who is a regulated institution, the applicant shall submit for that person:
(a) the document referred to in paragraph 5 (d); and
(b) the original opinion of the authority which oversees a person with a qualified participation in the applicant in the State of his registered office, that he is not aware of any obstacles to the credibility of that person, which would prevent that person from participating in the applicant's business in the Czech Republic.
Where an applicant for authorisation to operate a payment system with irrevocability of settlement is a person under Section 118 (2) of the Payment Act, the application shall include:
(a) a document similar to an extract from the commercial register proving the existence of an applicant who may not be more than 3 months old and the designation of a person who is entitled to act as an applicant, the extent and manner of such action, unless it is apparent from the document submitted; and
(b) payment system rules with irrevocability of settlement.
Details of the details of the notification of the change of data in the application for authorisation to operate a payment system with irrevocable settlement
The details of the details of the notification of the change, as specified in the application for authorisation to operate a payment system with irrevocable settlement, shall be the specification of the data the change takes place, supplemented by the updated information and documents referred to in Articles 3 (2) to (6) or, where applicable, Article 4, which are affected by the change, depending on the nature of the change.
Formats and other technical details of applications and notifications
Applications and notifications pursuant to § 3 to 5 shall be submitted in the Portable Document Format data format (pdf) or in another similar format.
Providing information to the Czech National Bank
(1) The settlement finality system operator provides the Czech National Bank with:
(a) the balance sheet of the payment system operator with irrevocable settlement;
(b) a statement of profit and loss of the payment system operator with irrevocability of settlement and notification of change of data in the application for authorisation to operate a payment system with irrevocability of settlement within the scope of Section 5.
(2) The settlement system operator shall provide the information referred to in paragraph 1 to the Czech National Bank for the calendar year by 30 April of the following year at the latest, in writing.
Common provisions
(1) Where the applicant is represented, the application shall include a document proving the authorised representative to represent the applicant.
(2) Where the nature of the case precludes the submission of the information or document required by this Order and the information is not sufficiently apparent from the application, the applicant shall indicate that fact in the application together with the reasons for which the information or document cannot be submitted and shall provide appropriate evidence.
(3) The applicant does not need to submit the information or documents required by this decree if they are available in current form in public registers or other public administrations information systems (1).
(4) Where a foreign State does not issue, pursuant to Article 2 (a), a document similar to the extract from the Register of Penalties, it shall be deemed to be equivalent to a declaration of honour made by a person not earlier than 3 months before the competent court, administrative authority or a notary of the State of which the person is a national citizen or in which he has his registered office or the State in which the person has remained continuously for more than 3 months in the last 3 years before the date on which he is established.
Efficacy
This Decision shall enter into force on 1 February 2018.
Governor:
Ing. Rusnok v. r.
1) For example, Act No. 304 / 2013 Coll., on Public Register of Legal and Natural Persons and on the Registration of Trust Funds, as amended, Act No. 455 / 1991 Coll., on Business Business (Trade Act), as amended.
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Regulation Information
| Citation | Decree No. 14 / 2018 Coll., on payment systems with irrevocable settlement |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.01.2018 |
|---|---|
| Effective from | 01.02.2018 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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