Amendment of Act No. 256/2004 Coll. on Capital Market Business published in Collection of Laws

UniCredit Bank Czech Republic and Slovakia,a.s.
Summary: 
The amendment of Act No. 256/2004 Coll. on capital market business has been officially published in the Collection of Laws of the Czech Republic, amending also the thresholds for disclosure requirements and related fines. It will become effective as of June 1, 2016.
Wed, 25/05/2016

Apart from the changes communicated in newsflash 09.05.2016/005 (link below); there has also been an amendment to the disclosure requirements. The lowest threshold has been set to 1% of the total voting rights for companies with registered capital higher than CZK 500 million (or equivalent in foreign currency). The calculation of voting rights includes call options embedded into existing securities.

The timeframe for the reporting towards the Czech National Bank and the issuer remains unchanged - the reporting duty must be fulfilled “without undue delay” and in any case no later than four business days following the acquisition or sale. The sanctions for non-compliance with reporting obligations has increased from a fine of CZK 10 million (approx. EUR 370,000) to up to the higher of CZK 300 million (approx. EUR 11.1 million), 5% of the total annual net revenues or twice the benefit gained from the violation.

Impact on investors:  The lowest threshold has been set to 1% of the total voting rights for companies with registered capital higher than CZK 500 million. Potential fines increased from CZK 10 million to up to CZK 300 million, 5% of the total annual net revenues or twice the benefit gained from the violation.

Related Newsflashes:  http://gss.unicreditgroup.eu/resources/cee-czech-republic/newsflashes/regulation-amendment