CZECH REPUBLIC Law and Practice Contributed by: Tomas Sedlacek, Zdeněk Husták, Adam Nečas and Mikuláš Zacpal, BBH, advokátní kancelář, s.r.o.
The FSB Key Attributes of Effective Resolution Regimes applies in general, subject to certain reservations. The CNB does not support the establishment of specific resolution funds. Also, a request that the other group members con - tinue providing necessary services to the bank in resolution is conditioned by the consent of the respective supervisory authorities, as in the case of intra-group financial support. The RPCR Act has not yet been amended following the last update of the FSB Key Attributes of Effective Resolution Regimes in 2024. One of the stated purposes of bank resolution is to protect the deposited funds covered by the Guarantee Scheme and similar rights to com - pensation, and to protect the assets of its cli - ents and customers. Deposit claims insured up to the amount of compensation covered by the Guarantee Scheme enjoy full protection in the resolution. The Czech Republic is bound by Regulation 2020/852, which establishes the criteria for determining whether an economic activity quali - fies as environmentally sustainable for the pur - poses of establishing the degree to which an investment is environmentally sustainable. Significant harm to environmental objectives, as defined by this regulation, is also taken into account when assessing whether an activity is environmentally sustainable. 9. ESG 9.1 ESG Requirements Banks are required to comply with the ESG transparency obligations under the SFDR regu - lation. Banks provide, inter alia, respective pre- contractual disclosures and periodic reports and
transparency statements about their individual financial products. There is currently no comprehensive domes - tic legislation in the Czech Republic to further develop the requirements set out in the EU leg - islation. However, the implementing legislation provides reference to assessing the customer’s sustain - ability requirements when determining the target market for the investment instrument, as well as the necessity to provide prescribed suitability information on a regular basis, and to provide the distributor of the investment instrument with information enabling them to take due account of any sustainability requirements of the cus - tomer. Also, non-financial disclosures and reports for certain types of corporations, including banks, are stipulated in the Accounting Act that imple - ments EU regulations requiring certain compa - nies to publish annual sustainability reports. Forthcoming Regulation 2022/2554 on digital operational resilience for the financial sector (DORA) requires banks to, inter alia, implement robust measures and governance to enhance resilience to digital and cyber risks. As the DORA represents directly applicable EU rules, the Act on digital financial market accom - modates DORA requirements regarding the supervisory powers of the CNB, as well as cor - rective measures and sanctions for the breach of the DORA obligations by financial institutions 10. DORA 10.1 DORA Requirements
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