New Reporting Duty for Stock Brokers

In accordance with the amendment to Act no. 256/2004 Coll. (the “Capital Markets Act”), which came into force on 1 May 2020, a new reporting duty arose for stock brokers enshrined in Section 129b of the Capital Markets Act. Pursuant to this provision, stock brokers are obliged to report to the Guarantee Fund information on the amount of customer assets always by 31 January of the given year for the previous calendar year.

In accordance with Section 129b par. 3 of the Capital Markets Act, the Ministry of Finance has prepared a draft executive regulation, which regulates the details, form, content, and structure of fulfilment of the reporting duty described above. The draft of the executive regulation is ready for submission to the Chamber of Deputies.

The executive regulation is expected to take effect on 1 January 2021, so stock brokers will be required to make the first report by 31 January 2021 for 2020.

At STUCHLÍKOVÁ & PARTNERS, we have been dealing with the regulation of capital markets for a long time. Contact us at to arrange free initial consultation.

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