CZECH REPUBLIC Law and Practice Contributed by: Tomas Sedlacek, Zdeněk Husták, Adam Nečas and Mikuláš Zacpal, BBH, advokátní kancelář, s.r.o.
1. Legal Framework 1.1 Key Laws and Regulations
failure of an obliged person or in the event of a group default and resolution financing, as well as the operation of the CNB as the local resolution authority. The banking sector is also affected by a number of other acts. In particular: • the Act on Certain Measures Against the Legalisation of the Proceeds of Crime and the Financing of Terrorism (the “AML Act”) provides for due diligence duties regarding money laundering; • the Capital Market Undertakings Act regu - lates the provision of investment services, custody and settlement services as well as the transparency of listed issuers; • the Non-performing Loans Market Act gov - erns the obligations in the administration of bank-granted loans that are classified as a non-performing exposure under Article 47a of the CRR; • the Consumer Credit Act regulates the condi - tions for granting and arranging consumer credit and mortgages; the • Act on Banknotes and Coin Circulation regulates paper currency, coins and money circulation; • the Act on Bonds governs the procedure of the issuance of bonds; • the Act on Bankruptcy and Methods of its Resolution regulates the procedures in insol - vency events; and • the Takeover Act regulates mandatory takeo - ver bids addressed to owners of publicly traded securities and other obligations. In addition to the domestic rules, there are numerous directly applicable EU regulations relevant to the banking sector, such as DORA (Regulation 2022/2554), MiCA (Regulation
Banking law and regulation in the Czech Repub - lic is heavily influenced by and harmonised with EU banking regulations, with the principal goal of ensuring the stability of the financial system and protection of the interests of bank customers. The main pieces of legislation governing the banking sector are as follows. • The Act on Banks (AoB) implements a range of EU banking sector rules, among oth - ers Regulation No 575/2013 on prudential requirements for credit institutions (CRR), Directive 2001/24/EC on the reorganisation and winding up of credit institutions, Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions, and Directive 2019/878 amending Directive 2013/36/EU. The AoB constitutes the cornerstone of banking regu - lation in the Czech Republic. • The Act on Payments implements Directive (EU) 2015/2366 on payment services in the internal market (the PSD II). This Act regulates the activities and obligations of certain per - sons authorised to provide payment services and issue electronic money. • The Act on the Czech National Bank (the “CNB Act”) regulates the operations and powers of the Czech National Bank as a financial market supervisory authority and crisis resolution authority. • The Act on Recovery Procedures and Cri - sis Resolution in the Financial Market (the “RPCR Act”), implements Directive 2014/59/ EU establishing a framework for the recov - ery and resolution of credit institutions and investment firms. This Act regulates resolu - tion planning, procedures in the event of the
156 CHAMBERS.COM
Powered by FlippingBook