What is Full text of Act No. 287 / 2006 Coll.?

Full version of Act No. 287 / 2006 Coll., Act No. 256 / 2004 Coll., on Capital Market Business, as seen from subsequent amendments — Full text of Act No. 256 / 2004 Coll., on Capital Market Business, as seen from subsequent amendments.

When it became Full text of Act No. 287 / 2006 Coll. effectiveness?

Full text of Act No. 287 / 2006 Coll. became effective date not available.

Is Full text of Act No. 287 / 2006 Coll. still valid?

Yes, Full text of Act No. 287 / 2006 Coll. is still valid and effective.

Full text of Act No. 287 / 2006 Coll.

Full text of Act No. 256 / 2004 Coll., on Capital Market Business, as seen from subsequent amendments

Valid Declared full text

Text versions: 14.06.2006

ČÁST PRVNÍ § 1 § 2 ČÁST DRUHÁ HLAVA I § 3 § 4 HLAVA II Díl 1 § 5 Díl 2 § 6 § 7 § 8 Díl 3 § 9 § 10 § 11 Díl 4 § 12 § 13 § 14 § 15 § 16 § 17 Díl 5 § 18 § 19 § 20 HLAVA III Díl 1 § 21 § 22 § 23 Díl 2 § 24 § 25 § 26 § 27 HLAVA IV § 28 HLAVA V § 29 § 30 § 31 § 32 ČÁST TŘETÍ § 33 ČÁST ČTVRTÁ HLAVA I § 34 § 35 HLAVA II § 36 § 36a § 36b § 36c § 36d § 36e § 36f § 36g § 36h § 36i § 36j § 36k § 36l ČÁST PÁTÁ HLAVA I § 37 § 38 § 39 § 40 § 41 § 42 § 43 § 44 § 45 § 46 § 47 § 48 § 49 § 50 až 55 HLAVA II § 56 § 57 § 58 § 59 § 60 § 61 § 62 § 63 § 64 § 65 § 66 § 67 § 68 § 69 § 70 § 71 § 72 HLAVA III § 73 § 74 § 75 § 76 § 77 § 78 § 79 § 80 § 81 ČÁST ŠESTÁ § 82 § 83 § 84 § 85 § 86 § 87 § 88 § 89 § 90 ČÁST SEDMÁ HLAVA I Díl 1 § 91 Díl 2 § 92 § 93 Díl 3 § 94 § 95 § 96 § 97 § 98 § 99 § 99a HLAVA II § 100 § 101 § 102 § 103 § 104 § 104a § 104b § 105 § 106 § 107 § 107a § 108 § 109 § 110 § 111 HLAVA III § 112 § 113 § 114 HLAVA IV § 115 ČÁST OSMÁ HLAVA I § 116 § 117 § 118 § 119 § 120 § 121 § 122 § 123 § 124 § 125 § 126 § 127 HLAVA II § 128 § 129 § 129a § 130 § 131 § 132 § 133 § 134 ČÁST DEVÁTÁ HLAVA I Díl 1 § 135 Díl 2 § 136 § 137 § 138 § 139 § 140 § 141 § 142 § 143 § 144 § 145 Díl 3 § 146 Díl 4 § 147 Díl 5 § 148 § 149 HLAVA II § 150 § 151 § 152 § 153 § 154 § 155 § 156 HLAVA III § 157 § 158 § 159 § 160 § 161 § 162 § 163 § 164 § 165 § 166 § 167 § 168 § 169 § 170 § 171 § 172 § 173 § 173a § 173b § 174 § 175 § 176 § 177 § 178 § 179 § 180 § 181 § 182 § 183 § 184 § 185 § 186 § 186a § 187 § 188 § 189 § 190 § 191 § 192 ČÁST DESÁTÁ § 193 ČÁST JEDENÁCTÁ § 194 § 195 § 196 § 197 § 198 § 199 § 200 § 201 § 202 § 202a § 203 § 204 § 205 § 206

Zobrazeno prvních 200 z celkem 2402 ustanovení tohoto předpisu. Zobrazit celý předpis →

Pro stažení celého znění použijte tlačítko Stáhnout výše.

287

PRESIDENT OF THE GOVERNMENT

Announces

full text of Act No. 256 / 2004 Coll., on the Capital Market Enterprise, as follows from changes made by Act No. 635 / 2004 Coll., Act No. 179 / 2005 Coll., Act No. 377 / 2005 Coll., Act No. 56 / 2006 Coll., Act No. 57 / 2006 Coll., Act No. 62 / 2006 Coll. and Act No. 70 / 2006 Coll.

THE LAW

on capital market business

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

BASIC PROVISIONS

§ 1

Subject matter

This law incorporates the relevant provisions of the European Community1) and regulates the provision of capital market services and the public supply of securities.

§ 2

Definition of terms

This law means:

(a) by a professional investor

1. securities dealer,

2. bank,

3. insurance company,

4. reinsurance undertaking,

5. investment company,

6. the Investment Fund,

7. pension fund,

8. payment system operator,

9. operator of the settlement system,

10. Person issuing and managing payment appropriations,

11. person who provides financial leasing (financial leasing) in business;

12. Person whose principal activity is to acquire participation in other companies;

13. Person providing business guarantees;

14. a company which, according to the last annual report or consolidated annual report, meets at least two of the three criteria, which are the total amount of assets corresponding to at least EUR 20 000 000 in Czech crowns, the net annual turnover corresponding to at least EUR 40 000 in Czech crowns and the equity corresponding to at least EUR 2 000 000 in Czech crowns,

15. a foreign person who is responsible for one of the persons referred to in points 1 to 14;

16. State or Member State of the Federation,

17. Czech National Bank, Foreign Central Bank or European Central Bank,

18. International Financial Institutions,

(b) details of the person

1. in the case of a legal person, the commercial firm or the name, registered office and identification number, if assigned;

2. in the case of a natural person, the name and surname, date of birth, address of residence; in the case of an entrepreneur incorporated in a commercial register, the commercial firm or place of business, where applicable, and the identification number, if assigned;

(c) a lead person a member of a statutory body, a statutory body, an executive director or a procurer of a legal person or a person who otherwise effectively manages the activities of a legal person;

(d) by qualifying holdings, a direct or indirect holding in the capital or voting rights of a person, or their total, representing at least 10%, or allowing a significant influence on its management;

(e) an indirect share held through another person or group of persons acting in agreement;

(f) close links between persons

1. one person has a direct or indirect share of the capital or voting rights of another person, representing at least 20%;

2. one person controls another person; or

3. controlled by the same person,

(g) a misleading indication which is capable of giving rise to a misleading idea of the subject matter to which it relates; a misleading indication is also a true indication which, in view of the context in which it was used, may mislead,

(h) the property of the customer is the funds and investment vehicles entrusted to the securities dealer for the purpose of providing the investment service and the funds and investment vehicles obtained for those values to the client. The assets of the customer are not deposits under the Bank1a Act, which are accounted for by a securities dealer who is a bank or branch of a foreign bank.

ČÁST DRUHÁ

INVESTMENT SERVICES

HLAVA I

BASIC PROVISIONS

§ 3

Investment instruments

(1) Investment instruments are:

(a) investment securities;

(b) collective investment securities;

(d) derivatives.

(2) Investment securities are:

(a) shares or similar securities representing a share of the companies that may be traded on the capital market;

(b) bonds or similar securities representing the right to repayment of the amount due which may be traded on the capital market;

(c) securities entitled to acquire securities referred to in (a) or (b) which are normally traded on the capital market, with the exception of payment instruments;

(d) other securities which are normally traded on the capital market which show a right to cash settlement, with the exception of payment instruments.

(3) For the purposes of this Act, derivatives are:

(a) options for investment vehicles referred to in paragraph 1 (a) to (c);

(b) financial futures (in particular futures, forwards and swaps) for investment vehicles referred to in points (a) to (c) of paragraph 1;

(d) instruments enabling the transfer of credit risk;

(e) other instruments giving rise to the right to cash settlement and the value of which is derived in particular from the investment security, index, interest rate, currency or commodity price.

(4) The identification mark under the international numbering system for securities identification (ISIN) shall be assigned to the investment instrument for trading on a regulated or free market at the request of the CSD (hereinafter referred to as the "CSD").

(5) Collective investment securities are units of a mutual fund, investment fund shares and similar securities issued abroad.

§ 4

Investment services

(1) Investment services are the main investment services and ancillary investment services provided to business third parties.

(2) The main investment services are:

(a) the adoption and transmission of orders concerning investment instruments;

(b) the execution of orders relating to investment vehicles on behalf of another person;

(d) the management of the client's assets under contract with the customer if the investment instrument is part of the assets;

(e) subscription or placement of the emissions of investment vehicles.

(3) Additional investment services are:

(a) the management of investment instruments;

(b) custody of investment vehicles;

(c) the provision of a loan or loan to a customer for the purpose of enabling trade in the investment instrument in which the loan provider participates;

(d) advisory activities relating to the structure of capital, industrial strategy and related issues, as well as the provision of advice and services concerning the transformation of companies or the transfer of undertakings;

(e) advisory activities concerning investment in investment instruments;

(f) the conduct of foreign exchange operations related to the provision of investment services;

(g) services related to the subscription of investment vehicles;

(h) the hire of safety deposit boxes.

(4) Investment services for the custody of investment vehicles also include the keeping of records relating to central securities records (§ 92) or the keeping of separate records of investment vehicles or the keeping of records relating to separate records of investment instruments (§ 93).

(5) Only a securities dealer (Section 5) may provide the main investment service or ancillary investment service referred to in paragraph 3 (a), unless otherwise provided by law.

(6) No authorisation or registration shall be required for the provision of an investment service where it is provided

(a) only persons who control the person providing the investment service are controlled by the person providing the investment service or persons controlled by the same person as the person providing the investment service; or

(b) in the context of another professional activity the law of which expressly authorises the provision of investment services, in particular a notary, a lawyer or a court executor.

HLAVA II

TRADER WITH PRICE PAPERS

Díl 1

Basic provisions

§ 5

A securities dealer is a legal person who provides investment services on the basis of the permission of the Czech National Bank to operate a securities dealer.

Díl 2

Authorisation to operate a securities dealer

§ 6

(1) The Czech National Bank will only grant permission for a securities dealer to operate in public limited liability companies,

(a) which issues only registered shares or paper shares in their names, without prejudice to the provisions of a special legislation on the form of priority shares issued by the Bank,

(b) which has both its registered office and its registered office in the Czech Republic;

(d) which submit a business plan and a draft organisational structure of the securities dealer;

(e) which has the substantive, personnel and organisational conditions for the performance of the activities of a securities dealer, in particular:

1. paid up capital;

2. its managers comply with the conditions of approval of persons pursuant to Paragraph 10;

(f) submit draft rules for the prudent provision of investment services and draft rules for the conduct of a securities dealer with customers meeting the requirements of this law;

(g) in which the persons competent for the sound and prudent management of the securities dealer have a qualified participation;

(h) whose close links with another person do not prevent the effective exercise of supervision of the securities dealer; in the case of close links with a person having his head office or his head office in a State which is not a Member State of the European Union, the legal order of that State and the manner in which it is applied, including the enforceability of the right, shall not prevent the effective exercise of the supervision of a securities dealer.

(2) In the authorisation to operate as a securities dealer, the Czech National Bank shall indicate which main and additional investment services the securities dealer is entitled to provide and in relation to which investment instruments. The authorisation shall contain at least one main investment service.

(3) The equity of a securities dealer, which is not a bank and has no investment services limited under paragraph 4, must be at least EUR 730 000 in Czech crowns.

(4) The capital of a securities dealer, which is not a bank and is not entitled to provide any of the investment services referred to in Article 4 (2) (c) and (e), must be at least EUR 125 000 in Czech crowns.

(5) Only activities listed in the permit for the activities of a securities dealer may be the subject of the business of a securities dealer that is not a bank.

(6) The authorisation to operate as a securities dealer is granted for an indefinite period.

§ 7

The application for authorisation to operate as a securities dealer shall contain the particulars and the supporting documents shall show the facts referred to in Article 6 (1). The details of the application and its annexes shall be laid down in implementing legislation.

§ 8

Before granting authorisation for the activities of a securities dealer, the Czech National Bank shall seek the opinion of the supervisory authority of another Member State of the European Union if the applicant is:

(a) controlled

1. the person authorised by the supervisory authority of that Member State of the European Union to provide investment services;

2. a credit institution [§ 151 (1) (l)] or a financial institution [§ 151 (1) (k)] with its head office in that Member State of the European Union; or

3. an insurance undertaking authorised by the supervisory authority of that Member State of the European Union; or

(b) controlled by the same person who controls the person referred to in (a).

Díl 3

Some terms and conditions of business of a securities dealer

§ 9

Capital adequacy of the securities dealer

(1) A securities dealer must respect capital adequacy on an individual basis. A securities dealer who is a bank shall respect the capital adequacy under the Bank1a Act).

(2) The solvency rules on an individual basis provide for an implementing act for a non-bank securities dealer.

§ 10

Approval of the head of the securities dealer

(1) The head of the securities dealer must have the prior consent of the Czech National Bank to perform his duties; for a securities dealer who is a bank, such approval shall be required only for the performance of the function of the manager of the bank as a securities dealer.

(2) The Czech National Bank shall give its consent to the person referred to in paragraph 1,

(a) which has reached the age of 18;

(b) which is eligible for legal action;

(c) where there has not been a fact which is an obstacle to the pursuit of a trade under the law governing a business business;

(d) which is credible;

(e) which is competent as a professional;

(f) which fulfils the condition of incompatibility of the functions referred to in paragraph 3;

(g) where the proper performance of its duties does not prevent its other activities.

(3) The head of the securities dealer may not be:

(a) Member or Senator of Parliament of the Czech Republic,

(b) an employee of the Czech National Bank;

(c) the investment intermediary or its manager or employee, or a foreign person with a similar subject of business, or its manager or employee; This does not apply if a securities dealer and an investment intermediary or a foreign person with a similar business are part of a single group,

(d) the lead or employee of another securities dealer or foreign person authorised to provide investment services; This does not apply if a securities dealer and another securities dealer or a foreign person authorised to provide investment services are participants in one group; or

(e) a lead or employee of an investment company or investment fund or a foreign person authorised to invest collectively; This does not apply if a securities dealer and an investment company or an investment fund or a foreign person authorised for collective investment are participants in one group.

(4) The request for consent referred to in paragraph 1 shall contain the particulars and documents necessary for the assessment of the facts referred to in paragraphs 2 and 3. The details of the application and its annexes shall be laid down in implementing legislation.

§ 11

Acquisition and waiver of participation in a securities dealer

(1) The person or persons acting in agreement must have the prior approval of the Czech National Bank

(a) to acquire a qualifying holding in a securities dealer, not to acquire a right of ownership to a security,

(b) to achieve or exceed a qualifying holding of 20%, 33% or 50% in a securities dealer, if not to achieve or exceed the qualifying holding by transferring ownership to a security; or

(2) For the purposes of calculating the participation referred to in paragraph 1 in a securities dealer, the voting rights of securities shall be included,

(a) held on behalf of the person referred to in paragraph 1 by another person on his behalf;

(b) owned by a person controlled by the person referred to in paragraph 1;

(c) held by another person who has concluded a contract with or controlled by the person referred to in paragraph 1, in which they have committed themselves to pursue a common policy on the management of the securities dealer in the long term by applying in agreement the voting rights of the securities they hold;

(d) held by another person under contract with or under the control of the person referred to in paragraph 1, where that contract provides for the temporary transfer of the disposition with voting rights to the person referred to in paragraph 1 or controlled by him for consideration;

(e) provided as security by the person referred to in paragraph 1; This shall not apply where the disposition with voting rights has been left to the person who holds the securities in custody, administration or property and who publishes in at least one national distributed journal information that he will exercise those voting rights; in that case, the voting rights of those securities shall be attributed to the person who holds them in custody, administration or property;

(f) which are owned by another person where that person exercises the voting rights of those securities on his or her behalf, in accordance with the instructions of the person referred to in paragraph 1, under a voting contract.

(3) Where a person, persons acting in conformity or persons referred to in paragraph 2 have their head office in a Member State of the European Union, are subject to supervision by the supervisory authority of that Member State and intend to take part in it in accordance with paragraph 1, the Czech National Bank shall request that supervisory authority before taking a decision.

(4) The request for consent referred to in paragraph 1 shall contain the information referred to in paragraph 1 and the supporting documents shall demonstrate the facts necessary to assess the suitability of the applicant for the sound and prudent management of the securities dealer and to assess whether the applicant's close links with the securities dealer prevent the effective exercise of supervision of that securities dealer. The details of the application and its annexes shall be laid down in implementing legislation.

(5) The Czech National Bank shall grant the consent referred to in paragraph 1 if the applicant is an appropriate person for the sound and prudent management of the securities dealer and if his close links with the securities dealer do not prevent the effective exercise of supervision of that securities dealer.

(6) If, within 3 months of the date of receipt of the request for consent referred to in paragraph 1, the Czech National Bank does not send the applicant a decision on that request against which decomposition can be made, consent shall be granted. If the application is suspended, the time limit shall not run.

(7) The consent referred to in paragraph 1 may be granted subsequently.

(8) A person who acquires or increases the qualifying participation referred to in paragraph 1 by transferring ownership rights to a security shall be obliged to notify the Czech National Bank without delay.

(9) The person, persons acting in agreement or persons referred to in paragraph 2 shall notify the Czech National Bank that:

(a) cease to control the securities dealer;

(b) reduce or cease their qualifying participation in a securities dealer to below 50%, 33%, 20%; or

(10) The notification referred to in paragraph 9 shall contain the information on the notifier, the data on the securities dealer and the amount of the notifier's participation in the securities dealer after the reduction; the notification referred to in paragraph 9 (c) shall also indicate the person to whom the qualifying participation is transferred.

(11) The acquisition or increase of a participation referred to in paragraph 1 in a securities dealer without the approval of the Czech National Bank shall not result in the legal act being nullified, but the voting rights attached to such participation shall not be exercised until the consent has been obtained.

(12) Paragraphs 1 to 11 shall not apply to a securities dealer who is a bank. In its case, it shall be treated in accordance with a special legislation governing the activity of the Bank1a).

Díl 4

Rules on the activities and management of the securities dealer

§ 12

Rules on the prudent provision of investment services

(1) The securities dealer shall establish:

(a) administrative and accounting procedures;

(b) control and security measures for data processing and recording;

(c) an internal control system; the securities dealer, which is a bank, shall comply with specific legislation governing the activities of the banks,

(d) the risk management system and the liquidity management system; the securities dealer, which is a bank, shall comply with specific legislation governing the activities of the banks,

(e) procedures to limit the possibility of conflicts of interest between him and his customer or between his customers;

(f) the rules governing the conclusion of transactions by its staff for their own account or for persons close to them under the Civil Code;

(g) rules for pooling client orders;

(h) a mechanism for controlling the activities of investment intermediaries used in the provision of their services;

(i) measures to protect internal information;

(j) measures to prevent market manipulation.

(2) The securities dealer shall, by internal law, adapt its internal organisation (organisational rules) and matters referred to in paragraph 1.

(3) The securities dealer shall ensure that records are kept

(a) book-entry securities with which the owner has entered into a contract for the custody of investment vehicles and which are kept in the central register of securities on the account of customers; such records shall be kept in the central securities register kept by the CSD (§ 92),

(b) book-entry securities with which the owner has concluded a contract for the safekeeping of investment instruments and which are kept in a separate stock register held by the Czech National Bank in a customer account; this register is kept in a register following a separate stock register held by the Czech National Bank (§ 93),

(c) paper investment vehicles entrusted to him by customers for safekeeping; such records are kept in a separate register of investment vehicles (Section 93),

Zobrazit všechna ustanovení (2402)

Comments 0

To write comments, please sign in.

Regulation Information

Citation	Full version of Act No. 287 / 2006 Coll., Act No. 256 / 2004 Coll., on Capital Market Business, as seen from subsequent amendments
Regulation Type	Declared full text
Author	-
Collection	Code of Laws

Date of Promulgation	14.06.2006
Effective from	-
Effective until	-
Status	Valid

Legal Areas: Banking, Money Securities Finance International law International public law Wages, salaries, wages, compensation Civil law Civil law substantive Commercial law Commercial companies Businessman, Company Labour law Administrative offences Administrative law State (official) control Constitutional (state) law Water, Water management Fundamental human rights

The regulation text is for informational purposes only.