Capital markets - transposition of the MiFID Directive
Summary of main changes:
Extension of regulation
As a result of transfer of investment advisory from supplementary services to main investment services, it will be necessary to have a permit for provision of advisory services. Licensed activities are further extended by trading with commodity and exotic derivatives, currency derivatives and in principle trading with investment tools on one’s own account.
Provision of investment services by securities dealers
Rules for negotiations with customers have been significantly extended. Categorization of customers has been introduced (professional and non-professional) as well as rules for assessment of suitability of investment services and tools for the customer in question. Informing of customers is regulated in detail as well as handling their instructions and performance of instructions under the best conditions. The dealer must meet the requirements imposed on the managing and inspection system, in particular the system of risk management. The new rules impact outsourcing, conflict of interests, protection of customers’ assets and personnel equipment of the dealer (the broker institute has been abandoned).
Simultaneously certain existing requirements imposed on dealers have been lifted; the legal form of a limited liability company will be newly admissible and the subject of business be allowed to include other activities subject to registration thereof with the Czech National Bank. Lower limits of the initial capital are admissible in the event of provision of reduced services.
Investment tools markets
An important change consists of unification of the regime for regulated markets and their organizers, i.e. the stock exchange market and over-the-counter securities market will not be differentiated. The multilateral trading system has been newly introduced, which may be operated as a licensed activity by securities dealers and for which less strict requirements are determined in contrast to regulated market. The market transparency should be increased by publication of information on bids and demands for investment tools concerning prices and quantity and on results of realized deals.
Other articles
KŠB secures landmark Supreme Court ruling on size premiums in squeeze-out valuations
Kocián Šolc Balaštík (KŠB) has obtained a significant victory before the Czech Supreme Court in a dispute over the fairness of the consideration paid to minority shareholders in Léčebné lázně Mariánské Lázně a.s. In its judgment in case no. 27 Cdo 1678/2025, the Court dismissed the claimants’ appeal and upheld the lower courts’ decisions. KŠB lawyers Radka Felgrová and Vlastimil Pihera represented the company and its majority shareholder.
KŠB advises on the sale of a majority stake in Znakon Group to enteria
KŠB provided legal advice on the sale of a 75% stake in Znakon, Znakon Asfalt and Znakon Servis to enteria, a Pardubice-based group and one of the Czech Republic’s largest construction holdings.
KŠB Runs for a Good Cause
On Tuesday, 8 September three teams from KŠB took part in the eighth annual Good Will Run organised by the Olga Havel Foundation in Prague’s Hvězda Park. Proceeds from the entry fees will go towards supporting families facing difficult circumstances due to serious illness, loss of housing or domestic violence.
