On 2nd March 2016, the Chamber of Deputies approved a bill amending Act No. 256/2004 Coll. on capital market transac- tions, as amended, and other related laws. We reported on this in the October 2015 Legal Update.
It is a relatively extensive amendment, the bill itself having nearly 60 pages and the entire parliamentary bulletin (incl. explanatory memorandum) a total of 400 pages.
The bill’s objectives are to harmonize Czech and EU legisla- tion, implement several European directives, enhance the ap- peal of the funds business and the Czech capital market and ensure better market function while increasing consumer protection.
The bill’s key points include:
- Increased awareness of the status of the shareholder structure of companies – issuers of securities accepted for trading on a European regulated market through the introduction of a notification duty to issuers and the Czech National Bank regarding the exceeding of a stipu- lated share in voting rights.
- Reduced minimum investment in qualified investor funds from EUR 125,000 to CZK 1,000,000 under the statu- tory conditions pertaining to verification of product suit- ability for the investor.
- Introduction of a Czech National Bank obligation to pub- lish effective decisions in a manner enabling remote ac- cess.
- Pursuant to the Act on Investment Companies and In- vestment Funds, the requirement that a SICAV have a monistic board structure should be eliminated.