What is Act No. 298 / 2021 Coll.?

Act No. 298 / 2021 Coll., amending Act No. 374 / 2015 Coll., on Financial Market Recovery and Resolution, as amended, and other related laws — Act amending Act No. 374 / 2015 Coll., on Financial Market Recovery and Resolution, as amended, and other related laws.

When it became Act No. 298 / 2021 Coll. effectiveness?

Act No. 298 / 2021 Coll. became effective 14.08.2021.

Is Act No. 298 / 2021 Coll. still valid?

Yes, Act No. 298 / 2021 Coll. is still valid and effective.

How many times was it Act No. 298 / 2021 Coll. amended?

Act No. 298 / 2021 Coll. has 4 time versions of the text.

Act No. 298 / 2021 Coll.

Act amending Act No. 374 / 2015 Coll., on Financial Market Recovery and Resolution, as amended, and other related laws

Valid Law Effective from 14.08.2021

Text versions: 01.01.2024 14.08.2021 13.08.2021

ČÁST PRVNÍ Čl. I „§ 24a „Díl 5 § 26a „HLAVA II § 81a § 81b § 81c „§ 85a „Oddíl 2 Pododdíl 1 § 127 § 127a § 127b § 127c Pododdíl 2 § 128 § 128a § 128b § 128c § 128d § 129 § 129a § 129b § 129c § 129d Pododdíl 3 § 130 § 130a § 131 § 131a § 131b § 131c Pododdíl 4 § 132 § 132a § 132b § 133 § 134 § 135 Pododdíl 5 § 136 § 136a § 136b Pododdíl 6 § 137 Pododdíl 7 § 137a „§ 149a „§ 164a „§ 237a § 237b Čl. II ČÁST DRUHÁ Čl. III ČÁST TŘETÍ Čl. IV ČÁST ČTVRTÁ Čl. V „§ 374c ČÁST PÁTÁ Čl. VI

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298

THE LAW

of 22 July 2021

amending Act No. 374 / 2015 Coll., on Financial Market Recovery and Crisis Management, as amended, and other related laws

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

Amendment to the Financial Market Recovery and Resolution Act

Čl. I

Act No. 374 / 2015 Coll., on Financial Market Recovery and Resolution, as amended by Act No. 183 / 2017 Coll., Act No. 182 / 2018 Coll., Act No. 307 / 2018 Coll. and Act No. 111 / 2019 Coll., is amended as follows:

1. At the end of footnote 1, the words "as amended by Directive (EU) 2019 / 879 of the European Parliament and of the Council 'are added.

2. At the end of footnote 2, the words "as amended 'are added.

3. in Article 1 (e), the word "a 'is replaced by the word" a'; at the end of point (f) the dot is replaced by the word "a 'and the following point (g) is added:

"(g) obligations for the sale of subordinated eligible liabilities."

4. in Article 2 (1) (a), the words "§ 82a," shall be deleted; the words "and conversions" shall be replaced by "or conversions of depreciation," the number "128" shall be replaced by "126," the number "137" shall be replaced by "138," and the words "and 164a shall be added at the end of the text of point (a)."

5. in Article 2 (1) (e) and (f):

"(e) a significant controlled entity of a significant subsidiary pursuant to Article 4 (1) (135) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(f) the controlling person of the parent undertaking referred to in Article 4 (1) (15) (a) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council, ';

6. in § 2 (1) (p) to (r):

"(p) a person subject to resolution who is a legal person established in a Member State against whom the group resolution plan envisages the application of resolution measures or an institution which is not part of a group subject to supervision on a consolidated basis, against which the resolution plan envisages the application of resolution measures;

(q) a group subject to resolution and controlled persons who are not:

1. persons subject to resolution;

2. persons controlled by another person subject to resolution; or

3. persons established in a Member State other than a Member State who are not part of a group subject to resolution under the resolution plan and those controlled by them;

(r) resolution strategies a set of resolution measures as set out in the resolution plan or group resolution plan; ';

7. in Article 2 (1) (t), the words "the Management Board," shall be deleted;

8. In § 2 (2) (a), § 4 (1) (d) (3), § 52 (1), § 60 (b), § 62 (1), § 63 (1), § 63 (2), § 64 (3), § 65 (1), § 166 (2), § 222 (1), § 228 (1), § 228 (2), § 228 (3), § 228 (4), § 229 (1), § 249 and § 250 (1), the words "and intra-group eligible liabilities" shall be inserted after the word "instruments."

9. in Article 2 (2), the following point (h) is inserted after point (g):

"(h) Common Equity Tier 1 own funds calculated in accordance with Article 50 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council,"

Points (h) to (q) shall be renumbered as points (i) to (r).

10. in Article 2 (2), the following points (m) to (o) are inserted after point (l):

"(m) an eligible undertaking which complies with the conditions of § 128 or 130;

(n) an intragroup eligible liability fulfilling the conditions laid down in Article 130, including liabilities not meeting the minimum maturity condition of the obligation under Article 72c (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(o) a subordinated eligible undertaking fulfilling the conditions laid down in Article 72b (2) (d) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council; ';

Points (m) to (r) shall be renumbered as points (p) to (u).

11. in Article 2 (2) (q), the words "and the approval of a financial holding person and a mixed financial holding person" shall be inserted after the words "licence."

12. In Article 2, the following paragraph 3 is inserted after paragraph 2:

"(3) Furthermore, for the purposes of this Act:

(a) a consolidated basis for the consolidated situation referred to in Article 4 (1) (47) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(b) the resolution authority, the authority entrusted with the exercise of resolution powers in the financial market;

(c) the group resolution authority is a resolution authority in a Member State whose supervisory authority is the consolidating supervisor;

(d) a global systemically significant institution of a global systemically significant institution pursuant to Article 4 (1) (133) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(e) a combined buffer of capital under the law governing the activities of banks, the law governing the activities of savings and credit cooperatives or the law governing the business on the capital market;

(f) a requirement for subordination to require a resolution person to comply with part of the minimum requirement through own funds, subordinated eligible liabilities or liabilities of the controlled person pursuant to § 128a;

(g) the risk of excessive leverage as referred to in Article 4 (1) (94) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council. ';

Paragraphs 3 and 4 shall be renumbered paragraphs 4 and 5.

13. in Paragraph 4 (1) (d) of the introductory part of the provision, the words "legislation (4)" shall be replaced by "regulation (4)" and the words "legal acts (5)" shall be replaced by "other acts (5)."

14. In Article 5, paragraphs 5 and 6 are added, including footnote 29:

"(5) The list referred to in paragraph 4 shall include at least the institutions, financial holding persons, mixed financial holding persons and the obliged entities which the obliged entity has designated as a member of the consolidation unit in the relevant statement submitted by the obliged entity to the Czech National Bank under the Act on the Czech National Bank29).

(6) The Czech National Bank may, for the purpose of preparing the resolution of a crisis, by decision require the institution to address potential acquirer under the conditions laid down in Sections 97 (1) and (2).

29) § 41 (3) of Act No. 6 / 1993 Coll., on the Czech National Bank, as amended. "

15. in Article 6 (2), '26' is replaced by '26a', '79' is replaced by 'and' 78 ',' up to 81b 'is inserted after' 81 'and' 98 ',' 128b, 128c, 129 to 129d, 131 to 131c, 137 ';

16. In the first sentence of Article 8 (1), the words "significantly negative 'shall be inserted after the words" possible'; the words "system 'shall be replaced by the words" markets'; the words "including the terms and conditions of their financing and the economy as a whole 'shall be replaced by the words" as well as for financing or the economy as a whole'.

17. in Articles 17 (4) and 22 (1), the words "and the Deposit Guarantee Fund" shall be deleted;

18. in Article 17 (5) (j), the word "strategy" shall be inserted after the word "framework."

19. in Article 17 (5) (o), the words "minimum requirements under § 129 and, where appropriate, contractual instruments under § 137" shall be replaced by "minimum requirement or internal minimum requirement."

20. in Article 17 (5), the following point (p) is inserted after point (o):

"(p) the time limit for fulfilling the requirement of subordination pursuant to § 128b or 128c,"

Points (p) to (r) shall be renumbered as points (q) to (s).

21. In Paragraph 18, the following paragraph 2 is inserted after paragraph 1:

"(2) The resolution plan shall also be updated following the application of resolution measures or write-off and conversion of depreciable capital instruments and intra-group eligible liabilities. When updating the resolution plan, the Czech National Bank shall set a time limit in accordance with Article 17 (5) (o) and (p), taking into account the time limit for the execution of the additional capital instruction under another legislative act (6). '

Paragraphs 2 to 5 shall be renumbered paragraphs 3 to 6.

22. in Paragraph 18 (5), "3" is replaced by "4."

23. in Paragraph 18 (6), "4" is replaced by "5."

24th Paragraph 19 (1) reads:

"(1) The resolution plan of the European Financial Group (hereinafter referred to as the" group resolution plan ") contains measures to be applied to the European controlling person and its controlled persons established in the territory of the Member States. The group resolution plan may include measures to be applied to controlled persons established in a territory other than a Member State. The group resolution plan shall be drawn up by the group resolution authority in cooperation with the resolution authorities of controlled persons and, where appropriate, in cooperation with the resolution authorities of significant branches, within the resolution college and after consulting the consolidating supervisor, the supervisory authorities of controlled persons and the supervisory authorities of significant branches. ';

25. In Paragraph 19 (2), the introductory part of the provision reads: "The group resolution plan shall identify for each European financial group the persons subject to resolution and the group subject to resolution; Articles 17 (2), (4) to (6) and 18 (1), (2), (4) to (6) shall apply mutatis mutandis to the group resolution plan; the group resolution plan describes'.

26. in Article 19 (2) (a):

"(a) the resolution measures that should be applied to the person subject to the resolution and the impact of those measures on individual members of the European Financial Group; where the European Financial Group includes several resolution groups, it describes the group resolution plan that should be applied to individual resolution entities and the impact of such actions on other resolution group members and other resolution groups forming part of the same European financial group; ';

27. in Article 19 (2) (b), the words "or members of a group subject to resolution" shall be inserted after the words "group, its members."

28. in Paragraph 19 (2), the words "and the consequences for crisis management in the European Union" shall be added at the end of the text referred to in point (c).

29. in Article 19 (2) (e), the words "in the context of group resolution, even in addition to the measures provided for by this law," shall be replaced by "in respect of members of each group subject to resolution."

30. In Article 19 (3), the first sentence is replaced by the following: "A group resolution plan shall include an assessment of the eligibility of the European financial group. If the European Financial Group includes several groups subject to resolution, it is part of the group plan as well as the assessment of the eligibility of each group subject to resolution. 'and in the last sentence, the words" and deposit guarantee schemes' are deleted.

31. in Paragraph 20 (1), "5" is replaced by "6."

32. in Paragraph 20 (5), the words "minimum requirements under § 129" are replaced by the words "minimum requirement or internal minimum requirement."

33. In Article 21 (1), at the end of the second sentence, the words "and, where appropriate, identify the person subject to resolution 'shall be added.

34. in Article 21 (3), the words "minimum requirements under Article 120" are replaced by the words "minimum requirement or internal minimum requirement."

35. in the first sentence of Paragraph 22 (1), a comma shall be inserted after the words "law or";

36. In the first sentence of Article 22 (2), the words "or procedures' are replaced by the words" or the application of resolution measures to the relevant person subject to resolution 'and the words "and the Deposit Guarantee Fund or similar deposit guarantee schemes of another Member State' are deleted.

37. in Article 22 (3), the word "delimited" is replaced by the word "determined" and the word "unie27" is replaced by "the Union governing the assessment of the eligibility of an institution or a group to deal with crises (27)."

At the end of footnote 27, the words "as amended 'are added.

38. In the fourth sentence of Paragraph 23 (1), the words "the Czech National Bank 'shall be inserted after the word" propose' and the last sentence shall be deleted.

39. In Article 23, the following paragraphs 2 and 3 are inserted after paragraph 1:

"(2) An institution shall, within 2 weeks of the date of receipt of the notification referred to in paragraph 1, propose to the Czech National Bank measures which will result in the fulfilment of a minimum requirement or an internal minimum requirement and the application of a combined capital buffer, and a timetable for their application, taking into account the grounds for the emergence of significant impediments to resolution, where such significant impediments result from the fact that institutions:

(a) meets the combined capital buffer in excess of the own funds requirements referred to in Article 92 (1) (a) to (c) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council and the own funds requirement imposed by it following the results of the review and evaluation or by means of measures to remedy risks other than the risks of excessive leverage under another legislative act (6), but does not meet the combined capital buffer in excess of the minimum requirement or internal minimum requirement determined as a percentage of the total risk exposure; or

(b) it does not meet the own funds and eligible liabilities requirement under Articles 92a and 494 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council, the minimum requirement or the internal minimum requirement.

(3) The Czech National Bank will assess whether the measures proposed by the institution under paragraph 1 or 2 may lead to the removal of the impediments to the ability of the resolution institution. "

Paragraphs 2 to 6 shall be renumbered paragraphs 4 to 8.

40. in Article 23 (5), the second sentence is deleted;

41. in Article 23 (6) (b), the word "engagement" is replaced by "exposure."

42. In Article 23 (6) (h), the words "domestic or European" shall be inserted after the words "established."

43.In Article 23 (6), the following point (i) is inserted after point (h):

"(i) or to a person referred to in Article 3 (b) or (c) to submit a plan of compliance with a minimum requirement or an internal minimum requirement determined as a percentage of the total volume of risk exposure, a plan of compliance with a combined buffer or a plan of compliance with a minimum requirement or an internal minimum requirement determined as a percentage of the total exposure,";

Points (i) to (k) shall be renumbered as points (j) to (l).

44. in Article 23 (6) (j), the word "deductible" shall be replaced by "eligible" and the words "minimum requirements under Article 129" shall be replaced by "minimum requirement or internal minimum requirement."

45. in Article 23 (6) (k), the words "minimum requirements under Article 130" are replaced by the words "minimum requirement or internal minimum requirement."

46. in Article 23 (6), the following point (l) is inserted after point (k):

"(l) to change the maturity profile of capital instruments and eligible liabilities;"

Point (l) shall be renumbered as point (m).

47. in Article 23 (6) (m), the words "or any other member of the group" shall be inserted after the word "institution," and the word "company" shall be replaced by "group."

48. in Paragraph 23 (8), "4 and 5" is replaced by "6 and 7."

49. In Article 24 (1), the words "within the resolution college" shall be inserted after the word "implement," and the words "resolution group" shall be inserted after the words "involving more than one group of resolution groups, assessment of the eligibility of each resolution group."

50. in Article 24 (3), the words "and after consulting the supervisory authorities concerned" shall be inserted after the words "the financial group"; the words "and each group subject to resolution belonging to the same European financial group" and the words "the proposals" shall be inserted after the words "targeted and proportionate."

51. In Article 24, the sentence "In this analysis, the Czech National Bank will take into account the group's business model is added at the end of paragraph 3."

52. Paragraph 24 (5) reads as follows:

"(5) The Czech National Bank, as a group resolution authority, shall inform the relevant branches of the draft measure referred to in paragraph 4, the European Banking Authority, the resolution authorities of controlled entities and, where appropriate, the resolution authorities of significant branches. The Czech National Bank shall endeavour to reach an agreement, in consultation with the relevant supervisory authorities and resolution authorities of significant branches and taking into account the potential impact in all Member States in which the group is operating, to remove significant impediments to resolution with the resolution authorities of controlled entities within 4 months of the date of communication of the proposal referred to in paragraph 4, or within 5 months of the date of submission of the analysis referred to in paragraph 3, unless the communication of the proposal referred to in paragraph 4 takes place within a specified period. ';

53. The following Section 24a is inserted after Section 24:

„§ 24a

(1) If the impediment to the eligibility of the European financial group is caused by the fact that the circumstances referred to in Article 23 (2) are given to a member of the group, the Czech National Bank, as the group's resolution authority, shall assess the impediment and, after consulting the resolution authority, notify its assessment to the European controlling party of the resolution and resolution authorities of the resolution authorities controlled by that resolution entity.

(2) Within 2 weeks of receipt of the notification, the European Controller shall propose to the Czech National Bank measures to ensure compliance with the minimum requirement or the internal minimum requirement as a percentage of the total amount of risk exposure, compliance with the combined buffer or compliance with the minimum requirement or internal minimum requirement as a percentage of the total exposure and their timing, in which the European Controller takes into account the reasons leading to the emergence of a barrier to resolution.

(3) As a group resolution authority, the Czech National Bank shall inform the European Banking Authority, the resolution authorities of controlled entities and, where appropriate, the resolution authorities of significant branches of the draft measure referred to in paragraph 2. The Czech National Bank shall endeavour to reach an agreement, in consultation with the relevant supervisory authorities and resolution authorities of significant branches, on the removal of significant impediments to resolution with the resolution authorities of controlled persons within 2 weeks of the date of communication of the draft measure referred to in paragraph 2, taking into account the potential impact in all Member States in which the group is active. ';

54. In Paragraph 25 (1), the words "or Article 24a (3)" shall be inserted after the words "Paragraph 24 (5)" and the words "the person subject to resolution" shall be inserted after the words "Article 24 (5)."

55. In the first sentence of Article 25 (2), the words, "the person subject to the resolution 'shall be inserted after the words" the person subject to the resolution' and the words, "such a measure is entitled to be imposed by the Czech National Bank even if the impediment to resolution is caused by the circumstances referred to in Article 23 (2) of the group member and if no agreement is reached within 2 weeks of the date of notification of the draft measure pursuant to Article 24a (2) '.

56. In the first sentence of Article 25 (3), "4 'is replaced by" 6' and the text "k) 'is replaced by" m'.

57. In the second sentence of Article 26 (1), the words "targeted and proportionate 'shall be inserted after the word" storage' and the words "and taking into account the possible impact in all Member States in which the group concerned operates' shall be added at the end of the sentence.

58. in Paragraph 26 (3):

"(3) The Czech National Bank, as a resolution authority of a controlled person who is not a resolution person, shall decide separately to impose measures to remove obstacles to resolution vis-à-vis members of a group based in the Czech Republic, unless the agreement referred to in paragraph 1 is reached within 4 months of the date on which the group resolution authority submitted to the Czech National Bank a proposal for alternative measures to remove obstacles developed by the European controlling person. If the European Supervisory Authority does not submit a draft alternative measures to the group resolution authority, the Czech National Bank shall decide separately within a period of 5 months from the date on which the group resolution authority submitted to it an analysis of the significant impediments to the resolution of the European financial group, together with proposals for measures to eliminate them. If the impediment to resolution is caused by the fact that the circumstances referred to in Paragraph 23 (2) are given to a group member and if no agreement is reached within 2 weeks of the date on which the European Supervisory Authority proposes measures to remove the impediments to resolution and the timetable for their implementation, the Czech National Bank shall decide separately. The decision shall take into account the opinions and reservations of the other resolution authorities. The decision of the Czech National Bank shall be notified to the resolution authority of the group, to the resolution authority of the resolution authority of the persons subject to resolution and to the resolution person. ';

59. In Paragraph 26, the following paragraph 4 is inserted after paragraph 3:

"(4) The Czech National Bank, as a resolution authority, shall decide separately to impose measures to remove obstacles to resolution vis-à-vis the resolution entity and other members of the resolution group located in the territory of the Czech Republic, unless the agreement is reached within the time limits referred to in paragraph 3. In the decision, the Czech National Bank shall take into account the views and reservations of the resolution authority of the group and of the resolution authorities of the other resolution members of the group concerned. The decision shall be notified to the group resolution authority. ';

Paragraph 4 shall become paragraph 5.

60. In the first sentence of Article 26 (5), the words "the time limit referred to in paragraph 3 'are replaced by the words" the time limits referred to in paragraphs 3 and 4', the number "4 'is replaced by" 6' and the text "(k) 'is replaced by" (m)' and the words "or 4 'are inserted after the words" paragraph 3'.

61. In Article 26, the following paragraph 6 is added:

"(6) The measures provided for in Article 23 (6) may also be imposed, mutatis mutandis, for the purpose set out in paragraphs 2 to 5 and Article 25 (1) to (3), on a obliged person under Article 3 (b) and (c) who is a member of the relevant European financial group. ';

62. In Part Two, Title III, the following Part 5 is added:

„Díl 5

Restrictions related to the breach of the combined buffer

§ 26a

(1) The obliged entity which is obliged to comply with the combined capital reserve shall immediately notify the Czech National Bank that:

(a) meets the combined capital buffer in excess of the own funds requirements referred to in Article 92 (1) (a) to (c) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council and the own funds requirements imposed on it following the results of the review and evaluation or by means of measures to remedy risks other than the risks of excessive leverage under another legislative act (6); and

(b) it does not meet the combined buffer in excess of the minimum or internal minimum requirement determined as a percentage of the total risk exposure amount.

(2) If the obliged entity notifies the Czech National Bank of the facts referred to in paragraph 1, or finds otherwise, the Czech National Bank may prohibit the obliged entity from distributing a proportion of profits after tax, taking into account:

(a) the reason, duration and extent of failure to comply with the combined buffer referred to in paragraph 1 and its impact on the eligibility of the resolution officer;

(b) the development of the financial situation of the debtor and the likelihood that the debtor may fail in the foreseeable future;

(d) whether the reasons for which the debtor is unable to replace the obligations which have ceased to meet the eligibility criteria under § 128 or 130 are of an individual nature or the result of a wider market imbalance; and

(e) whether the prohibition on the distribution of a proportion of profits after tax is the most appropriate and proportionate measure to address the situation of the debtor, taking into account the impact of the prohibition on the financial situation and the capacity to deal with the debtor.

(3) If the Czech National Bank does not prohibit the distribution of a proportion of profits after tax pursuant to paragraph 2, it shall, at least once a month, examine whether the conditions for imposing that prohibition are fulfilled.

(4) The Czech National Bank shall prohibit a obliged entity from dividing a proportion of profits after tax if, pursuant to paragraph 1, it does not meet the combined capital reserve for a period of 9 months from the notification referred to in paragraph 1 or from the moment the Czech National Bank finds such facts; The Czech National Bank shall not prohibit the distribution of a proportion of profits if at least 2 of the following conditions are met:

(a) the obliged entity does not meet the combined buffer due to a serious disruption in the functioning of the financial market, which causes extensive tensions across several sectors of the financial market;

(b) the disruption to the functioning of the financial market referred to in point (a) results in the partial or full closure of markets which does not allow the obliged entity to issue Common Equity Tier 1 instruments, depreciable capital instruments or eligible liabilities, the mere increase in the price of Common Equity Tier 1 instruments, deductible capital instruments or eligible liabilities issued by the obliged entity, or the increase in the costs of the obliged entity,

(d) the disruption of the financial market referred to in point (a) does not allow the obliged entity to issue Common Equity Tier 1 instruments, depreciable capital instruments or eligible liabilities of sufficient amount to meet the combined buffer;

(e) a ban on the distribution of a proportion of profits after tax would adversely affect a part of the banking sector and could thus undermine financial stability.

(5) If the Czech National Bank does not prohibit the allocation of the pro rata amount of profit after tax pursuant to paragraph 4, it shall at least once a month examine whether at least 2 of the conditions referred to in paragraph 4 are still met.

(6) If the Czech National Bank decides to prohibit the distribution of a proportion of profits after tax pursuant to paragraph 2 or 4, the debtor may not distribute an amount higher than the maximum amount for the possible distribution calculated in accordance with the formula set out in Annex 3 to this Act.

(7) The allocation referred to in paragraph 6 shall mean:

(a) taking a decision on the distribution of Common Equity Tier 1 capital;

(b) the taking-over of an obligation to pay variable remuneration or special pension benefits or to pay variable remuneration where the obligation to pay variable remuneration arose at a time when the debtor did not meet the combined capital reserve; and

63. In the first sentence of Article 27 (1), the text "§ 35 'is replaced by" § 37'; in the second sentence, the word "or 'is replaced by a comma and the words' or any combination of these forms of financial support in one or more transactions, including transactions between the beneficiary and a third party 'are inserted after the word" collateral'.

64.Paragraph 30 (1) reads as follows:

"(1) If the Czech National Bank receives a copy of the application for approval of the group support contract from the competent supervisory authority as the supervisory authority of the controlled entity that is party to the group support contract on a consolidated basis, it shall endeavour to reach an agreement within 4 months of the date of receipt of the application by the consolidating supervisor regarding the compliance of the intra-group support contract with the conditions set out in paragraphs 28 and 32, taking into account the possible effects of such a decision, including the fiscal consequences of the provision of services under the group support contract in the Member States in which the group is active. ';

65. In the first sentence of Paragraph 39 (1), the words "application 'shall be inserted after the words" activity and' and the words "not being or not being realised 'shall be replaced by the words" not sufficient to correct deficiencies'.

66. In Paragraph 51 (5), the words "consultations under paragraph 'are replaced by the words" consultations under Paragraph 50 (5)'.

67.In Article 56 (1) and (2), "136" is replaced by "135."

68. In the first sentence of Article 57 (1), the words "in order to recognise losses associated with assets in the accounts of the obliged entity 'shall be inserted after the words" in the first sentence of Article 57 (1)' and the words "in the second sentence of paragraph 45 (1) 'shall be inserted after the words" This valuation'.

69. in Paragraph 57 (6), the text "§ 114 (6)" is replaced by "§ 114 (5)."

70. At the end of the title of Part Five, the words "AND NATIONAL ELIGIBLE UNDERTAKINGS 'shall be added.

71. in Article 59 (1), Article 60 of the introductory part of the provision and in Article 70 (2), the words "and intra-group eligible liabilities" shall be inserted after the words "instruments."

72. In the first sentence of Paragraph 59 (2), the words "neither intra-group eligible liabilities' shall be inserted after the words" instruments'.

73. In Paragraph 59, paragraphs 3 to 5 are added:

"(3) The Czech National Bank shall not be required to comply with paragraphs 1 and 2 if, in view of the valuation or the forecast estimate referred to in paragraph 52 (1), it considers that, as a result of the resolution measures provided for in this Act, the transfer of business to a private acquirer, the transfer of activity to a bridge institution or asset management person will not entail loss or the conversion of their claims.

(4) If the resolution entity is the owner of the detachable equity instruments or the creditor of the intragroup eligible liabilities indirectly through the obligor belonging to the same resolution group, the Czech National Bank shall write-off or convert detachable equity instruments or intragroup eligible liabilities at the level of that obligor at the same time as the write-off or conversion of the capital instruments or intragroup eligible liabilities at the level of its controlled entity, so that the losses of the controlled entity are effectively transferred to the resolution entity and that the obligor obligor entity is effectively recapitalised.

(5) If the Czech National Bank debits or converts capital instruments or intra-group eligible liabilities independently of resolution measures, Paragraph 76 (e) shall apply mutatis mutandis. ';

74. In Part Five, at the end of the text of the headings of Titles II to IV, the words "AND NATIONAL ELIGIBLE UNDERTAKINGS 'shall be added.

75. in Article 62 (1), the words "private sector, including institutional protection measures, measures to remedy under another legislation (6), early intervention measures pursuant to Article 37 or depreciation and conversion of capital instruments and intra-group eligible liabilities" shall be inserted after the words "measures."

76. In Paragraph 63 (2), the word "deductible 'shall be inserted after the word" conversion'.

77. In Article 64 (1) of the Introductory Part of the provision, the words "and to 'are replaced by the words" or to', after the word "on the basis', the words" or subject to an internal minimum requirement 'and the words "to notify without undue delay' are replaced by the words" within 24 hours after consultation with the resolution authority of the relevant resolution authority '.

78.In Article 64 (1) (a), the word "a 'is deleted; at the end of point (b), the dot is replaced by the word" a' and the following point (c) is added:

"(c) the resolution authorities of persons who are members of the same group subject to resolution and who have acquired, directly or indirectly, debatable capital instruments or intra-group eligible liabilities of the obliged entity.";

79. In Paragraph 64, the following paragraph 4 is added:

"(4) After the Czech National Bank has made the notification referred to in paragraph 1, it shall, after consulting the authorities referred to in points (a) and (b) of paragraph 1, assess whether the early intervention measure referred to in paragraph 37, the remedy measure under another legislative act (6), the decision under another legislative act (6) imposing an obligation to maintain capital above the minimum level of the capital requirement referred to in Article 92 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council, or the transfer of funds or capital from the controlling person, carried out alone or jointly with another measure, would, in a reasonable period of time avert its failure. After the Czech National Bank has made the notification referred to in paragraph 2, it shall, after consulting the authorities referred to in paragraph 2 (a) and (b), carry out the assessment referred to in the first sentence mutatis mutandis. ';

80. At the end of the text of Section 67, the words "and intra-group eligible liabilities' are added.

81. In Paragraph 67, the following paragraph 3 is added:

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Regulation Information

Citation	Act No. 298 / 2021 Coll., amending Act No. 374 / 2015 Coll., on Financial Market Recovery and Resolution, as amended, and other related laws
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	13.08.2021
Effective from	14.08.2021
Effective until	-
Status	Valid

Legal Areas: Banking, Money Securities Finance

The regulation text is for informational purposes only.