The work of receivers and liquidators – obtaining a license step by step

1. 5. 2014 | Source: Point of Single Contact (PSC) Czech Republic

This involves the work of receivers for stock brokers that do not constitute a bank, investment company, investment fund, market regulator, operator of a settlement system, or a central depository. It furthermore involves the work of persons who may be appointed the liquidator of an investment company, collective investment fund with legal capacity and the main administrator and persons who may be appointed receivers of an investment company that manages a collective investment fund or a comparable foreign investment fund, a collective investment fund with legal capacity, or the work of a liquidator of an investment company or investment fund.

It also involves the work of administrators and loss adjusters of insurance companies.

The work of a receiver is delegated by an act of the government. The receiver or liquidator must be enrolled in the list of receivers and liquidators kept by Czech National Bank.

  1. Application for registration in the list of receivers for stock brokers that do not constitute a bank, market regulator, operator of a settlement system, or a central depository
  2. Application for registration in the list of persons who may be appointed the liquidator of an investment company, collective investment fund with legal capacity and the main administrator and persons who may be appointed receivers of an investment company that manages a collective investment fund or a comparable foreign investment fund, a collective investment fund with legal capacity
  3. Application for registration in the list of administrators and loss adjusters of insurance companies

Application for registration in the list of receivers for stock brokers that do not constitute a bank, market regulator, operator of a settlement system, or a central depository.

Application for registration in the list of liquidators and receivers can be submitted only in the prescribed form, which shall be accompanied by the documents necessary for determining whether the conditions have been met. The form and content of its annexes are set out according to Decree No. 233/2009 Coll., on applications, approval of persons, and how to demonstrate professional qualifications, trustworthiness and the experience of persons, and the minimum amount of funds provided to a branch of a foreign bank.

The application shall be accompanied by the following annexes:

1. Curriculum vitae containing

  • 1. Information about education, i.e.
    • name and style or type of educational institution, degree program, the focus of the study program, the duration of the study program, the method and date of graduation, or obtainment of degree,
    • list of courses, internships and fellowships important for activity in the financial market with indication of the year of graduation, focus, duration and possibly degrees obtained,
  • 2. Information about professional experience, i.e.
    • information about the type of professional experience,
    • names of persons under whom the professional experience is being or was obtained,
    • job description, and in the case of the importance of experience for work on the financial market, a description of the activities performed,
    • definition of the length of time the activity was performed according to item 3,
    • agreement with the performance of a work category required by other legislation, where such an agreement was e.g.,

2. Original proof of the good character of the applicant, i.e. a document similar to an extract from the Crime Register not older than 3 months issued by the foreign country of which the natural person is a citizen, and by a foreign country in which the natural person lived continuously in the last 3 years for periods of time longer than 6 months.

Conditions – Czech National Bank shall register a person in the list of receivers and liquidators who applies for it, has the full legal capacity, professional qualifications and credibility, and has not been removed from the list in the last 5 years.

Czech National Bank shall register a person in the list provided he has authorization from another Member State of the European Union to act as a receiver or liquidator.

Application for registration in the list of persons who may be appointed the liquidator of an investment company, collective investment fund with legal capacity and the main administrator and persons who may be appointed receivers of an investment company that manages a collective investment fund or a comparable foreign investment fund, a collective investment fund with legal capacity,

Application for registration in the list of liquidators and receivers can be submitted only in the prescribed form, which shall be accompanied by the documents necessary for determining whether the conditions have been met. The form and content of its annexes are pursuant to Decree No. 247/2013 Coll., on applications under the act on investment companies and investment funds.

The application shall be accompanied by the following annexes:

1. Curriculum vitae containing  

  • 1. Information about education, i.e.
    • about the name and style or type of educational institution, degree program and its focus, the duration of the study program, the method and date of graduation, or obtainment of degree,
    • about the list of courses, internships and fellowships important for activity in the financial market with indication of the year of graduation, focus, duration and possibly degrees obtained, information about professional experience, i.e.
  • 2. Information about the type of professional experience,
    • names of persons under whom the professional experience is being or was obtained,
    • job description, and in the case of the importance of experience for work on the financial market, a description of the activities performed, including the scope of authorization and responsibility
    • definition of the length of time the activity was performed according to item 3,
    • agreement with the performance of a work category required by other legislation, where such an agreement was e.g.,

2. Original proof of the good character of the applicant, i.e. a document similar to an extract from the Crime Register not older than 3 months issued by the foreign country of which the natural person is a citizen, and by a foreign country in which the natural person lived continuously in the last 3 years for periods of time longer than 6 months.

Conditions – Czech National Bank shall register a person in the list of receivers and liquidators at his request who has attained the age of 18, has no limitations of empowerment, is not subject to any situation that would be a barrier to performing a trade under the law regulating a trade business that is credible, who is professionally trained and who has not been removed from this list or a similar one in the last 5 years (this does not apply in the case of removal at the person’s own request), is fully qualified to perform legal acts, professionally qualified and trustworthy, and has not been removed from this list in the last 5 years.

Czech National Bank shall register a foreigner in the list according to paragraph 1 only if he has authorization from a competent authority of another Member State to act as a liquidator or receiver.

The acceptance of an application for the registration of a liquidator or receiver by Czech National Bank requires an administrative fee of 2,000 CZK, which is set out in Act No. 634/2004 Coll., on administrative fees, item 65 9j) of the list of tariffs.

Application for registration in the list of administrators and loss adjusters of insurance companies

Czech National Bank maintains the list of administrators and loss adjusters, which it uses to appoint administrators and, at the suggestion of an administrator, his representative. Czech National Bank shall register a person in this list who applies for it if he has full legal capacity, meets the conditions of trustworthiness and has a degree in economics or law and corresponding experience, or is a citizen of another Member State whose license to perform this activity was issued by the competent authority of another Member State.

The scope of information and documents that the applicant for registration must submit in the registration application are pursuant to Decree No. 434/2009 Coll., which implements certain provisions of the Insurance Act.

The application for registration in the list of administrators or in the list of loss adjusters shall be submitted together with information about the applicant, namely his name or names, and surname, maiden name, address of residence, mailing address, date and place of birth (country, county, municipality), gender and citizenship, and proof of the good character, education and experience of the applicant.

1. Proof of the good character of a citizen of the Czech Republic and a natural person who has lived continuously for a period of more than 3 months in the Czech Republic in the last 3 years prior to the date of proving his good character is an extract from the Crime Register under the law regulating the Crime Register 12) (hereinafter “extract from the Crime Register”). A foreign natural person demonstrates his good character with pertinent documents issued by the country of which the natural person is a citizen, and by countries in which he has lived continuously for a period of more than 3 months in the last 3 years prior to the date of proving his good character. A citizen of the Czech Republic who has lived abroad continuously for a period of more than 3 months in the last 3 years prior to the date of demonstrating his good character shall also demonstrate his good character with pertinent documents issued by the country in which he resided at that time. If according to paragraph 2 the country does not issue a document considered the equivalent of an extract from the Crime Register, a document issued by a competent judicial or administrative authority of the country of which the natural person is a citizen, or of the country where he lived continuously for a period of more than 3 months in the last 3 years prior to the date of demonstrating his good character shall be considered proof attesting to the good character of this natural person. If such document is not issued, then an affidavit not older than 3 months and executed by the natural person before a court or administrative authority, or before a notary public of the country of which the natural person is a citizen, or of the country where he lived continuously for a period of more than 3 months in the last 3 years prior to the date of demonstrating his good character shall be considered an equivalent document.

2. As proof of the education obtained by the natural person, a college diploma shall be submitted together with a certificate of the state exam, a leaving-exams certificate, diploma from a community college, certificate of matriculation examination or other similar document issued by an educational institution or other written document which demonstrates in a credible manner:

  • 1. Name and style or type of educational institution
  • 2. Proper completion of study program
  • 3. Period of the study program and its content.

3. An affidavit is submitted as a document attesting to the experience or performance of the assessed natural person, in particular with information on all employment undertaken with a description of the activities performed and positions, on all business activities, other self-employed activities, membership in the bodies of other legal entities and membership in professional societies, chambers or associations.

More information on the conditions for registration in the list of receivers, and other information on the licensing procedure

Applicants who meet the conditions prescribed by law are registered by Czech National Bank in the list of receivers and liquidators.

The business may be conducted after fulfilling all the above stated requirements.

Related information:

If you have any questions, you can contact Points of Single Contact (PSC) set up at 15 municipal trade licence offices in all regions. More information on PSCs.

You can write your comments and proposals in the discussion forum.

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