In order to become authorized, an applicant must satisfy the CNB that it meets the requirements set forth in the respective pieces of legislation applicable to the different categories of financial and investment services. Under Czech law, providing financial and investment services may be subject to a license, registration or mere notification to the regulatory authority.
These requirements can vary depending on the particular regulated activities that the applicant intends to carry on. Broadly, however, the following conditions will need to be satisfied in the case of corporates:
- Location of offices - The registered office must be located in the Czech Republic.
- Effective supervision - The CNB will consider whether there are any impediments to supervision of the applicant.
- Appropriate financial resources - Applicants must satisfy the CNB that they have adequate financial resources to carry on the relevant regulated activities and prove that the origin of the resources is transparent. The minimum registered capital must be paid up in full.
- Appropriate human resources - The executives of the applicant and persons in charge of its supervision must be, among others, trustworthy and sufficiently qualified and skilled. Management and control systems must be in place.
- Appropriate technical and organizational resources – The applicant must satisfy the CNB that it has in place appropriate technical and organizational resources to carry on the relevant regulated activities.
- Business model - The CNB will examine the applicant’s business model. These may also require submission of other plans and rules applicable to the applicant’s activity.
- Transparency of the applicant’s group - The CNB will require that the group to which the applicant pertains be transparent.
In certain cases, the CNB may also request supervisory authorities of other EEA countries to provide opinions with respect to the application.
Generally, individuals seeking to obtain authorization must, among others, meet the following criteria:
- Be 18 years old
- Have full legal capacity
- Be trustworthy
- Not be previously declared insolvent
- Be appropriately educated, qualified and/or skilled
- Be suitable to be granted authorization/registration