Act No. 228 / 2013 Coll.
Act amending Act No. 377 / 2005 Coll., on the Supplementary Supervision of Banks, Savings and Credit Cooperatives, Insurance and Securities Traders in Financial Conglomerates and on the Amendment of Certain Other Laws (Financial Conglomerates Act), as amended, and Act No. 277 / 2009 Coll., on Insurance, as amended
Valid
Law
Effective from 10.06.2013
228
THE LAW
of 20 June 2013
amending Act No 377 / 2005 Coll., on the supplementary supervision of banks, savings and credit cooperatives, insurance companies and securities dealers in financial conglomerates and amending certain other laws (Financial Conglomerates Act), as amended, and Act No 277 / 2009 Coll., on Insurance, as amended
Parliament has decided on this law of the Czech Republic:
Amendment to the Financial Conglomerates Act
Act No. 377 / 2005 Coll., on the supplementary supervision of banks, savings and credit cooperatives, insurance companies and securities dealers in financial conglomerates and amending certain other laws (Act on financial conglomerates), as amended by Act No. 57 / 2006 Coll., Act No. 138 / 2006 Coll., Act No. 230 / 2006 Coll., Act No. 278 / 2009 Coll., Act No. 281 / 2009 Coll., Act No. 139 / 2011 Coll., Act No. 37 / 2012 Coll., Act No. 89 / 2012 Coll. and Act No. 91 / 2012 Coll., is amended as follows:
1. In Article 1, the words "European Community1) 'are replaced by the words" European Union1)';
Footnote 1:
"(1) Directive 2002 / 87 / EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73 / 239 / EEC, 79 / 267 / EEC, 92 / 49 / EEC, 92 / 96 / EEC, 93 / 6 / EEC and 93 / 22 / EEC and Directives 98 / 78 / EC and 2000 / 12 / EC of the European Parliament and of the Council of 24 November 2010 amending Directives 98 / 26 / EC, 2002 / 87 / EC, 2003 / 6 / EC, 2003 / 41 / EC, 2003 / 71 / EC, 2004 / 39 / EC, 2004 / 109 / EC, 2005 / 60 / EC, 2006 / 48 / EC, 2006 / 49 / EC and 2009 / 65 / EC with regard to the powers of the European Authority for the supervision (European Banking Authority), Directive (European Supervisory Authority), 2004 / 39 / EC, 2004 / 39 / EC, 2004 / EC, 2004 / EC, 2004 / 109 / EC, 2004 / 109 / EC, Directive 2011 / 89 / EU of the European Parliament and of the Council of 16 November 2011 amending Directives 98 / 78 / EC, 2002 / 87 / EC, 2006 / 48 / EC and 2009 / 138 / EC as regards the supplementary supervision of financial entities in a financial conglomerate. ';
2. In Article 1, the words "[§ 2 (d)] 'are deleted.
3. in Article 2 (a), the words "special legislation" shall be replaced by the words "law governing the activities of banks";
footnote 2 is deleted, including the footnote references.
4. In Article 2 (b), the words "[point (n)] 'are deleted and the words" special legislation' are replaced by the words "insurance law '.
footnote 3 is deleted, including the footnote references.
5. in Article 2, the following points (c) to (e) are inserted after point (b):
"(c) reinsurance undertaking domestic reinsurance undertaking, reinsurance undertaking from another Member State, reinsurance undertaking from a third State or reinsurance special purpose vehicle according to the law governing insurance,
(d) the manager of the standard fund, the manager of the standard fund or comparable foreign investment fund under the law governing investment companies and investment funds;
(e) the manager of large-scale investment funds, the manager of a special fund, a foreign investment fund comparable to a special fund, a qualifying investor fund or a foreign investment fund comparable to a qualifying investor fund which is entitled to exceed the applicable limit under the law governing investment companies and investment funds; ';
Points (c) to (s) shall be renumbered as points (f) to (u).
6. In Article 2 (f), the words "special legislation 'are replaced by the words" law governing the capital market business'.
footnote 4 is deleted, including the footnote references.
7. in Article 2 (g):
"(g) regulated entity
1. bank,
2. savings and credit cooperatives;
3. insurance company,
4. reinsurance undertaking,
5. Securities dealer,
6. the manager of the standard fund; or
7. the manager of large-scale investment funds; ';
footnote 5 is deleted, including the footnote references.
8. in Article 2, the following points (h) and (i) are inserted after point (g):
"(h) the controlling person controlling the person under the law governing the insurance sector;
(i) controlled by a person controlled by the law governing the insurance sector, ';
Points (h) to (u) shall be renumbered as points (j) to (w).
9. In Article 2 (j), the words "not being a control 'are deleted and the words" is always considered to be a significant influence, unless it is a control' are replaced by the words "including control '.
10. in Article 2 (k), the words "(4)" shall be deleted;
11. in Article 2 (l) and (m):
"(l) a group of groups consisting of:
1. controlling persons, persons controlled by it or other associated persons; or
2. Controlling persons, persons controlled by them, other associated persons, persons linked to one of those persons by a single management relationship, or persons whose majority of members of their statutory, management or supervisory bodies constitute, for most of the financial year, persons who are in the statutory, management or supervisory bodies of one of the persons referred to in point 1;
including any subgroup thereof,
(m) close connection
1. the relationship between two or more persons in which one person exercises a significant influence on the other person; or
2. the relationship between two or more persons controlled by the same person; ';
12. in Article 2 (o), the words "(3)" shall be deleted;
13. in Article 2 (p), the words "or reinsurance undertakings" shall be inserted after the words "insurance undertakings."
14. in Article 2 (q) (3), the words "[§ 5 (5) (b)]" shall be deleted and the words "unless otherwise provided for in the directly applicable regulation of the European Union" shall be added at the end of the text of the point; in calculating the market share for the purposes of this Act, the sum of the balance sheet total of persons in the banking or investment services sector and gross premiums written in the insurance sector shall be used; ';
15. in Article 2 (u), the words "(hereinafter" risks ")" shall be deleted;
16. in Article 2, at the end of point (v), the comma is replaced by a dot and point (w) is deleted;
17. Paragraph 3 (2) reads:
"(2) The banking sector shall include banks, savings and credit cooperatives, financial institutions and ancillary banking services undertakings under the law governing the activities of banks, with the exception of securities dealers and persons forming the insurance sector pursuant to paragraph 3. ';
18. in Paragraph 3 (3), the words "special legislation" shall be replaced by the words "insurance law";
19. in Paragraph 3 (4), the words "special legislation" are replaced by the words "law."
20.
Definition of the financial conglomerate
(1) The financial conglomerate is a group or subgroup where:
(a) the head of the group or subgroup shall be:
1. a regulated person who either controls a person in the financial sector or is a person exercising significant influence in a person in the financial sector or is a person linked to another person in the financial sector by a single management relationship or is a person for which the majority of the members of the statutory, management or supervisory bodies constitute, for most of the financial year, the same persons who are statutory, management or supervisory bodies or their members of another person in the financial sector; or
2. a person who is not a regulated entity, with the activities of a group or sub-group taking place predominantly in the financial sector;
(b) at least one person in a group or sub-group is part of the insurance sector and at least one person in a group or sub-group is part of the banking or investment services sector; and
(c) the sum of the activities of the insurance sector of the group or sub-group and the sum of the activities of the banking and investment services sector of the group or sub-group are significant.
(2) The activities of the group or sub-group are mainly carried out in the financial sector if its balance sheet ratio exceeds 0,4.
(3) The balance sheet total ratio means the proportion in which the numerator is the sum of the balance sheet sum of the group or sub-group that are part of the financial sector and the denominator is the sum of the balance sheet sum of all the group or sub-group persons. ';
21. in Article 5, the following paragraph 4 is inserted after paragraph 3:
"(4) For the purposes of calculating the materiality weight referred to in paragraph 2, the manager of a standard fund and the manager of large-scale investment funds shall be added to the sector to which they belong in the group. If they do not belong exclusively to one sector, they shall be added to the least significant sector in the group. '
Paragraphs 4 to 6 shall be renumbered paragraphs 5 to 7.
22. in Article 5 (6) and (7):
"(6) Where a group does not meet one of the conditions set out in paragraphs 1 and 5, the competent supervisory authorities may agree not to consider that group as a financial conglomerate, or that that group will not be subject to the requirements laid down by that law to a risk management and concentration system at the level of a financial conglomerate, intra-group operations and an internal management and control system, or one of them, if, in the opinion of those competent supervisory authorities, the obligation laid down by that law is not necessary, appropriate or misleading.
(7) The competent supervisory authorities shall notify the decision referred to in paragraph 6 to the other supervisory authorities and publish the decision; in cases of discretion, the obligation to publish may be waived. ';
23. in Article 6 (2), "§ 5 (4)" is replaced by "§ 5 (5)";
24.
(1) The competent supervisory authorities may, in cases of prudent and mutually agreed balance sheet total when calculating the balance sheet balance sheet ratio in accordance with paragraphs 4 and 5 and the weight of the sector concerned, replace or supplement the structure of the yield, the value of off-balance-sheet transactions, the total value of the assets in management, their combinations or all of these indicators at the same time.
(2) In determining whether the group's activities are mainly carried out in the financial sector and whether the group's total activities and the group's banking and investment services activities are significant, competent supervisory authorities, on a proposal from the coordinator (§ 13) by mutual agreement
(a) need not take into account persons who, under the decision of the coordinator (Paragraph 13), may not be included in the calculation of the supplementary capital adequacy requirement, except for persons who have moved their registered office from a Member State to a third State with a view to circumventing regulatory requirements for their activities or supplementary supervision requirements in force in the territory of the European Union;
(b) may take account of compliance with the criteria set out in Article 4 (2) and Article 5 (1) for the last 3 years; the procedure shall not apply where significant changes in the structure of the group have occurred during that period; or
(c) may not take into account one or more of the affiliated entities included in the smaller sector in the group, provided that such inclusion is decisive for the designation of the group as a financial conglomerate and that the associate or those associates together are not relevant for the purposes of supplementary supervision.
(3) The competent supervisory authorities shall, at least once a year, review the derogations from supplementary supervision provided for by their mutual agreement pursuant to Article 5 and the quantitative measures provided for in Articles 5, 6 and 8. ';
25. in Article 9 (1) of the Introductory Part of the provision, the words "and the Joint Committee of European Supervisory Authorities shall be inserted after the words" the group. "
26. in Paragraph 9 (6):
"(6) The coordinator shall inform the supervisory authorities authorised by the regulated entities in the group, the supervisory authorities of the Member State in which the mixed financial holding person is located and the Joint Committee of the ESAs of the designation of the group as a financial conglomerate and its provisions by the coordinator. ';
footnote 8 is deleted, including the footnote references.
27. Paragraph 11 (3) before paragraph 4 becomes paragraph 4 and paragraph 4 becomes paragraph 5.
28. In Article 11 (5), "the Commission of the European Communities' is replaced by" the European Commission '.
29. In Paragraph 14 (2), at the end of the first sentence, the words "which shall be taken into account separately in the written supervisory agreements under the laws governing insurance and banking activities' shall be added.
30. In Article 14, paragraphs 3 and 4 are added:
"(3) In order to carry out the tasks of the coordinator and the cooperation of supervisors in the exercise of supplementary supervision, colleges of supervisors established under the law governing insurance and the activities of banks shall be used.
(4) The coordinator shall decide which other supervisory authorities shall participate in the college activities referred to in paragraph 3. ';
31. in Paragraph 15 (2) (a):
"(a) the management and organisational structure of the group and the property relations within the group, including all regulated and unregulated persons and significant branches, holders of qualifying holdings in a person at the head of a financial conglomerate and the supervisory authorities of the group,"
32. In Article 15, at the end of paragraph 3, the sentence "The information referred to in paragraph 2 (a) shall be provided by the coordinator to the Joint Committee of European Supervisory Authorities."
33.In Article 20 (4), the word "or 'shall be added at the end of point (b) and point (c) shall be deleted.
Point (d) shall be renumbered (c).
34. in Article 20 (4) (c), "to (c)" is replaced by "and (b)";
35. in Paragraph 24 (1), "sufficiently experienced" is replaced by "eligible."
36. In Paragraph 24 (2), the word "experience 'is replaced by" competence'.
37. In Article 24, the following paragraphs 3 and 4 are added:
"(3) For the purposes of this Act, the assessment of the credibility of a person shall include an assessment of the integrity, moral and financial integrity on the basis of supporting documents proving, in particular, its criminal integrity, its conduct and conduct in trade in the context of business, employment or function, the fulfilment of obligations towards supervisory authorities and other matters relevant to the assessment.
(4) For the purposes of this Act, the assessment of a person's competence shall include, in particular, an assessment of his or her professional qualifications, knowledge and experience, including experience in the performance of the management function and his or her current financial market expertise. At the same time, the specific tasks entrusted to that person shall be taken into account. ';
38. In Paragraph 25, the following paragraphs 3 and 4 are inserted after paragraph 2:
"(3) Regulators at the highest level of management of a financial conglomerate shall provide the competent supervisory authority at least once a year with information on their management and organisational structure and ownership relationships between persons in a financial conglomerate, including all regulated and unregulated persons and significant branches in a financial conglomerate.
(4) Regulators at the highest level of management of the financial conglomerate shall publish annually a report on their management and organisational structure and property relations between persons in the financial conglomerate. This obligation may also be fulfilled by publishing a reference to another source of that information. ';
Paragraphs 3 and 4 shall become paragraphs 5 and 6.
39. in Paragraph 25 (5):
"(5) The coordinator shall, in consultation with the other competent supervisory authorities and in agreement with the persons referred to in paragraphs 1 to 4, adjust the form in which the information is submitted and the way in which the information is transmitted. The structure and deadlines of the transmission of information for the purposes of supplementary supervision under this Act shall be adapted by implementing legislation. ';
40. In Article 33, the words "at the European Commission 'shall be inserted after the words" conglomerates'.
41. In Paragraph 34, "3 'is replaced by" 5';
Amendment of the Insurance Act
Act No. 277 / 2009 Coll., on Insurance, as amended by Act No. 409 / 2010 Coll., Act No. 188 / 2011 Coll., Act No. 420 / 2011 Coll., Act No. 428 / 2011 Coll., Act No. 458 / 2011 Coll. and Act No. 18 / 2012 Coll., is amended as follows:
1. in Article 3 (6) (g), the words "insurance or reinsurance undertaking from a third State" shall be inserted after the words "reinsurance undertaking."
2. In Paragraph 87 (1), the words "or mixed financial holding persons' shall be added at the end of the text in point (c).
3. In Paragraph 88 (4), the words "mixed financial holding company 'shall be inserted after the words" activity'.
4. In Paragraph 88 (5), the words "mixed financial holding company" shall be inserted after the words "third-country reinsurance undertaking."
5. The following Section 88a is inserted after Section 88:
Specific provisions for the supervision of a mixed financial holding person
(1) The Czech National Bank, if it is a group supervisor, may, after consulting the competent supervisory authorities, provide that supervision of the mixed financial holding company is governed only by the relevant provisions of the law governing the supplementary supervision of financial conglomerates, provided that such mixed financial holding company is subject to comparable provisions of that law and of the law governing the supplementary supervision of financial conglomerates, in particular as regards risk-oriented supervision.
(2) In agreement with the consolidating supervisor in the banking and investment services sector, the Czech National Bank, if it is the supervisory authority of the group, may provide that supervision of the mixed financial holding company is governed only by the provisions applicable to the most important sector under the law governing the supplementary supervision of financial conglomerates, provided that such mixed financial holding company is subject to comparable provisions of that law and the law governing the activities of banks or the law governing the capital market business, in particular as regards risk-oriented supervision.
(3) The Czech National Bank shall inform the European Supervisory Authorities established by directly applicable European Union rules of the facts established pursuant to paragraphs 1 and 2. ';
EFFECTIVE
This Law shall take effect on 10 June 2013, with the exception of Article I (21), which shall take effect on 22 July 2013.
Germany
Zeman v. r.
Rusnok v. r.
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Regulation Information
| Citation | Act No. 228 / 2013 Coll., amending Act No. 377 / 2005 Coll., on additional supervision of banks, savings and credit cooperatives, insurance companies and securities dealers in financial conglomerates and amending certain other laws (Financial Conglomerates Act), as amended, and Act No. 277 / 2009 Coll., on insurance, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 02.08.2013 |
|---|---|
| Effective from | 10.06.2013 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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