Act No. 16 / 1998 Coll.
Act amending and supplementing Act No. 21 / 1992 Coll., on Banks, as amended
Valid
Effective from 06.02.1998
16
THE LAW
of 13 January 1998
amending and supplementing Act No 21 / 1992 Coll., on Banks, as amended
Parliament has decided on this law of the Czech Republic:
Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 264 / 1992 Coll., Act No. 292 / 1993 Coll., Act No. 156 / 1994 Coll., Act No. 83 / 1995 Coll., Act No. 84 / 1995 Coll., Act No. 61 / 1996 Coll. and Act No. 306 / 1997 Coll., is amended as follows:
1. In Article 1 (1), the words "Czech and Slovak Federal Republic 'are replaced by the words" Czech Republic'.
2. in § 1 (7), in § 9 (2), in § 10, in § 14 (a) and in § 19 (1) (g) the words "State Bank of Czechoslovakia" are replaced by the words "Czech National Bank";
3. Note 2:
"2) Act ČNR No. 6 / 1993 Coll., on the Czech National Bank, as amended by Act No. 60 / 1993 Coll. '.
4. in Article 1 (3) (n), the words "investment fund" shall be deleted;
5. in § 4 (1), in § 5 (1), in § 22 (2), in § 24 (2) and in § 40 (1), the words "State Bank of Czechoslovakia" are replaced by the words "Czech National Bank";
6. in § 4 (1), in § 5 (4), in § 15 and in § 24 (2), the words "State Bank of Czechoslovakia" are replaced by the words "Czech National Bank."
Article 7 (4) (2) reads as follows:
"(2) The Czech National Bank decides to grant permission to operate as a bank in agreement with the Ministry of Finance. The decision to grant permission to operate as a bank is signed by the Governor of the Czech National Bank. '
8. in Article 4 (3) and Article 5 (3), point (e) shall be deleted;
9. In Article 5 (1), the words "Czech and Slovak Federal Republic 'are replaced by the words" Czech Republic'.
10.
"(2) The Czech National Bank shall decide on the authorisation provided for in paragraph 1 in agreement with the Ministry of Finance. '
11.
A full list of banks and branches of foreign banks operating in the Czech Republic is managed by the Czech National Bank. The list is available at the headquarters and branches of the Czech National Bank. "
12. In Paragraph 8, the following paragraph 3 is inserted after paragraph 2:
"(3) A member of the statutory body, a member of the supervisory board of the bank or an employee of the bank may not be a member of the statutory authority or supervisory board of another legal person who is an entrepreneur at the same time. This does not apply in cases where the legal person is the person under the control of the bank, including foreign legal persons, and in cases where the legal person is an ancillary banking services undertaking (§ 17a) or a stock exchange. This shall not apply to members of the statutory body or supervisory board of the bank even where another legal person is the person in control of the bank, including foreign legal persons. '
Paragraph 3 shall become paragraph 4.
13. In Section 11, the words "or Slovak" are deleted.
14. In the first sentence of Paragraph 14, the word "Czechoslovak 'is replaced by" Czech'.
15.
(1) Previous Czech National Bank approval is required
(a) the acquisition of the shareholding of foreign persons in a bank already established;
(b) the decision of the General Meeting to abolish the Bank;
(c) to merge the bank with the cancelled bank;
(d) to reduce the bank's capital, in the absence of a reduction in the bank's capital to cover losses;
(e) to acquire or transfer a holding of more than 15% of the Bank's capital on the basis of one or more operations by one or more persons acting in agreement, (3a) not to inherit.
The prior approval of the Czech National Bank under points (b) and (c) shall be given in agreement with the Ministry of Finance. Legal acts taken without the required prior consent shall be void.
(2) Only a court may appoint a liquidator of the bank on a proposal from the Czech National Bank. An application to appoint a liquidator shall be decided by the court within 24 hours of the application.
(3) A person who has acquired a shareholding by inheritance to the extent of more than 15% of the bank's capital must immediately inform the Czech National Bank.
(4) The provisions of paragraph 1 (b) and (c) are without prejudice to the provisions of a special Regulation. (4)
(3a) Article 66b of the Commercial Code.
4) Act No. 63 / 1991 Coll., on the Protection of Competition, as amended. '
16.
(1) The Bank may not exercise control over another legal person who is not a bank under this Act, a financial institution or an ancillary banking services undertaking.
(2) Qualified participation of a bank in a legal person who is not a bank under this Act, a financial institution or an ancillary banking services undertaking may not exceed:
(a) 15% of the bank's capital in one legal person;
(b) in total, 60% of the Bank's capital in respect of all legal persons.
(3) The restrictions referred to in paragraph 2 do not apply to:
(a) the qualifying holding of a bank in a legal person incurred as a result of a claim by a bank to that legal person, provided that the bank holds a qualifying holding no more than one year after its acquisition;
(b) the qualifying holdings of the Bank by virtue of its participation in the issue of securities and the provision of related services, provided that the Bank holds a qualifying holding no more than six months after its acquisition. "
17. the following Article 17a is inserted after Article 17, including footnote (4a):
(1) Control means a direct or indirect share of more than 50% of the capital of a legal person or of voting rights in a legal person, or the right to appoint or withdraw a majority of the members of the statutory body, supervisory board, directors of a legal person, or to exercise a decisive influence over the management of a legal person in which a person is a member, shareholder or member, under a contract with a legal person, a provision in the statutes of a legal person, an agreement with other members, shareholders or members of a legal person, or the possibility of exercising a decisive influence by other means.
(2) Indirect holdings shall be the proportion held by the intermediary through the legal person under control.
(3) A financial institution is a legal entity other than a bank under this Act that carries out one of the activities referred to in § 1 (1) and (3) of this Act, as well as an investment company, investment fund, pension fund and insurance undertaking that carry out activities under special laws. (4a)
(4) Qualified participation means a direct or indirect share of more than 10% of the capital of a legal person or of voting rights in a legal person, or the exercise of significant influence on the management of that legal person.
(5) The business of ancillary banking services is a legal person who provides services to support the business of banks.
4a) Act No. 248 / 1992 Coll., on investment companies and investment funds, as amended. Act No. 42 / 1994 Coll., on supplementary pension insurance with a State contribution and on amendments to certain laws related to its implementation, as amended by Act No. 61 / 1996 Coll. Act No. 185 / 1991 Coll., on Insurance, as amended. '
18. the first sentence of Paragraph 19 (2) shall be deleted.
19. The following Sections 19a and 19b are inserted after Paragraph 19, including footnote 5a:
(1) Securities and securities-related or securities-related transactions under the special legislature (5a) may be carried out by the bank on its own account or on its property only under the most favourable conditions for the bank, in particular at the most favourable price that can be obtained when professional care is incurred.
(2) In particular, the provision of professional care is demonstrated by:
(a) for individual sales, purchases and other transactions, compares price offers, where appropriate, to demonstrate the inappropriateness or impossibility of assessing multiple bids;
(b) document the way in which the transaction is conducted, check the objectivity of the recorded data and prevent the risk of own financial losses;
(c) carry out an analysis of the economic advantages of transactions from publicly available information;
(d) develop an investment strategy and a business strategy which is the basis for the implementation of each operation.
(3) In particular, the provision of professional care by the Bank represents the execution of transactions within automated trading systems, or in other ways where, however, the Bank must be able to demonstrate in particular the reasons for the benefit of the Bank and its clients.
(1) The Bank must prevent:
(a) when carrying out investment transactions, the use of information obtained in connection with its credit transactions and vice versa;
(b) when carrying out investment transactions on its own account, the use of information obtained in connection with its investment transactions on behalf of the client and vice versa;
if the information is not publicly available.
(2) In particular, to fulfil the obligations referred to in paragraph 1, the Bank shall take measures in its organisational, management and control system to ensure the separation of credit and investment transactions.
(3) Credit transactions are credit and guarantee activities.
(4) Investment transactions are activities relating to:
(a) investment in securities;
(b) securities trading;
(c) trading in securities-related or securities-related rights;
(d) participation in the issue of securities and the provision of related services;
(e) the management of securities, including advisory activities.
(5) Investment transactions on behalf of a client may be executed by the bank only under the most favourable conditions for the client, in particular at the most advantageous price for the client, which can be achieved in the course of professional care.
(6) The Bank shall keep separate records of investment transactions carried out on behalf of the client.
(5a) Sections 14 and 15 of the ČNR Act No. 591 / 1992 Coll., on Securities, as amended. § 1 (d) of Act No. 219 / 1995 Coll., Foreign Exchange Act. '
20. In § 22 (2) and § 25, the words "State Bank of Czechoslovakia" are replaced by the words "Czech National Bank."
21. Article 22 shall be added to the following paragraph 5:
"(5) With the knowledge of the statutory authority, the person responsible for internal control of the bank may, if necessary, initiate the extraordinary deliberations of the Supervisory Board and inform him of the facts found. ';
22. in § 24 (1) and in § 37, the word "Kčs" is replaced by "Kč."
23. in Paragraph 26 (4), the words "carried out outside the compulsory administration regime" shall be deleted.
24. the last sentence of Paragraph 29 (2) shall be deleted.
Article 25 (34) (1) reads as follows:
"(1) The Czech National Bank, in agreement with the Ministry of Finance, shall withdraw the authorisation to operate as a bank in the absence of serious deficiencies in the operation of the bank or branch of the foreign bank; the measure may not prevent the introduction of forced administration. ';
Article 26 (1) reads as follows:
"(1) A bank as a state monetary institution may be set up by a central government body. The Czech National Bank is authorised in agreement with the Ministry of Finance to establish it; it shall do so on application, the particulars of which are identical to those of the application pursuant to Article 4 (1). ';
Article 27 (38) shall be added as follows:
"(6) The Bank is required, even without the consent of the client, to communicate to the person authorised to execute the decision of its client's banking connection, the account number and the identification code of the bank or branch of the foreign bank and the identification details of his client, who is the account holder. The same obligation of the bank also applies to a person who proves that he or she has suffered damage as a result of his or her misdisposition to a bank or branch of a foreign bank and that, without this information, he or she cannot exercise his or her right to issue unjustified enrichment within the meaning of the Civil Code. In order to provide information, the bank is to pay the costs in kind.
(7) Paragraphs 1 and 6 shall apply mutatis mutandis to branches of foreign banks. "
28. Paragraph 41 (1) reads as follows:
"(1) Decomposition against the decision of the Czech National Bank is decided by the Banking Board of the Czech National Bank. Decomposition against the decision of the Czech National Bank issued in agreement with the Ministry of Finance is decided by the Banking Board of the Czech National Bank in agreement with the Minister of Finance. The decomposition does not have suspensory effect. ';
29. in § 41e (2), "100 000 CZK" is replaced by "300 000 CZK."
30. Paragraph 44 is deleted.
Transitional provisions
1. The Bank shall, within one year of the date of application of this Act, bring the composition of its statutory body and supervisory board and the membership of its staff in the statutory bodies and supervisory boards of other legal entities into line with this Act.
2. The Bank is obliged to comply within one year of the effective date of this Act with the obligation imposed by § 17 (1) of Act No. 21 / 1992 Coll., on Banks, as amended by that Act.
3. The Bank shall, within three years of the date of application of this Act, bring the qualifying holdings into line with Article 17 (2) of Act No. 21 / 1992 Coll., on Banks, as amended by this Act. In the first year after the effective date of this Act, the bank is obliged to reduce the excess of the limits reported on the effective date of this Act by 50%; in the second year after the effective date of this Act, the bank is obliged to reduce the excess of the limits reported on the effective date of this Act by 25%. Qualified participations which at the date of application of this Act exceed the maximum permissible amount laid down in § 17 (2) of Act No. 21 / 1992 Coll., on banks, as amended by this Act, may not be further increased by the Bank.
4. The Bank, which is entitled to conduct both credit and investment transactions, is obliged to implement the measures provided for in Section 19b of Act No. 21 / 1992 Coll., on Banks, as amended by this Act, within six months of the effectiveness of this Act.
5. The Deposit Guarantee Fund (hereinafter referred to as "the Fund") will pay to natural and legal persons who, on 15 December 1995, were depositors of the Czech Bank, a public limited company Prague, now in liquidation, (hereinafter referred to as "the Bank") additional compensation for all claims on their deposits, including deposit certificates, deposit certificates or other similar bonds, held with the Bank on 15 December 1995, which will be recognised by the bankruptcy administrator, up to CZK 4 million to each depositor. The payment of the additional compensation shall be made in accordance with the provisions of Sections 41d to 41g of Act No. 21 / 1992 Coll., on Banks, as amended, while reducing the additional compensation paid to the Fund by the refund already paid. The additional compensation shall also be paid to the heirs of natural persons and legal successors. At the date of the start of the payment of the additional compensation, the depositor's claim on the bank shall be reduced by an amount equal to his right to additional compensation from the Fund. The Fund shall become the creditor of the Bank at the level of the bank's depositors' rights to the performance of the Fund on the date of the start of the payment of the additional compensation. The payment of additional compensation under this provision must start within four months of the effectiveness of this Act.
The President of the Chamber of Deputies of the Parliament of the Czech Republic is hereby authorised to declare in the Collection of Laws of the Czech Republic the full text of Act No. 21 / 1992 Coll., on Banks, as is apparent from later laws.
This Act shall take effect on the day of its publication.
Zeman v. r.
Havel v. r.
Tošovský v. r.
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Regulation Information
| Citation | Act No. 16 / 1998 Coll., amending and supplementing Act No. 21 / 1992 Coll., on Banks, as amended |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 06.02.1998 |
|---|---|
| Effective from | 06.02.1998 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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