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2022-01-01

Decree No. 227/2022

The Czech National Bank issued Decree No. 227/2022 to amend Decree No. 308/2017 regarding the provision of investment services. The amendment integrates sustainability considerations into target market determinations and product governance, explicitly excluding sustainability factors from compatibility assessments while requiring their transparent presentation to distributors. These changes align national regulations with EU sustainability disclosure rules and take effect on November 22, 2022.

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227 DECREES of 21 July 2022, amending Decree No. 308/2017 Coll., on the detailed regulation of certain rules in the provision of investment services

The Czech National Bank, pursuant to Section 199(2) of Act No. 256/2004 Coll., on the business on the capital market, as amended by Act No. 204/2017 Coll., Act No. 119/2020 Coll., Act No. 353/2021 Coll., and Act No. 96/2022 Coll., in implementation of Section 12f(a) of this Act, hereby provides:

Article I Decree No. 308/2017 Coll., on the detailed regulation of certain rules in the provision of investment services, is amended as follows:

  1. In footnote 1, the words “, as amended by Commission Delegated Regulation (EU) 2021/1269.” are added at the end of the text.

  2. In Section 9(3), the first sentence is replaced by the sentence: “A securities dealer shall determine the target market for each investment instrument and specify the type of customers whose needs, characteristics, and objectives, including objectives relating to sustainability3), are compatible with the given investment instrument, and at the same time determine the type of customers with whose needs, characteristics, and objectives the given investment instrument is not compatible; however, such incompatibility cannot be based on sustainability factors within the meaning of Article 2(24) of Regulation (EU) 2019/2088 of the European Parliament and of the Council4) (hereinafter referred to as “sustainability factor”).”.

Footnotes 3 and 4 shall read: “3) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088. 4) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector, in the version in force.”.

  1. In Section 9(6), at the end of letter (a), the word “and” is replaced by a comma, and a new letter (b) is inserted after letter (a), which reads: “b) any sustainability factors of this investment instrument correspond to the target market and”. The existing letter (b) is designated as letter (c).

  2. In Section 10, at the end of paragraph 2, the sentence is added: “The securities dealer shall present the sustainability factors of the investment instrument in a transparent manner so as to provide the distributor of the investment instrument with information enabling it to duly take into account all customer objectives relating to sustainability3).”.

  3. In Section 10(3) and in Section 12(2), the words “, including objectives relating to sustainability3),” are inserted after the word “objectives”.

  4. In Section 11(2), first sentence, the words “, including objectives relating to sustainability3),” are inserted after the word “objectives”, and the words “; however, sustainability factors shall not be used for the assessment of incompatibility” are added at the end of the text of the paragraph.

Article II Effectiveness This decree shall enter into force on 22 November 2022. Governor: Ing. Michl, Ph.D., in person

Part 104 Collection of Laws No. 227 / 2022 Page 2633

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