On The Fair Presentation Of Investment Recommendations

Original Language Title: On The Fair Presentation Of Investment Recommendations

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=62340&nr=114~2F2006~20Sb.&ft=txt

114/2006 Sb.



DECREE



of 27 June. March 2006



on the fair presentation of investment recommendations



The Securities Commission shall lay down pursuant to § 199 para. 2 (a). with) Law No.

256/2004 Coll., on the capital market, as amended by Act No.

56/2006 Coll. (hereinafter the "Act"):



§ 1



The subject of the edit



This Decree incorporates the relevant provisions of the European

Community ^ 1) as regards the fair presentation of investment

recommendations and the disclosure of conflicts of interest and modifies the more detailed rules

for



and the fair presentation of investment recommendations) ^ 2), and



b) disclosure of interests and conflicts of interest of persons investment recommendations

make up and expand, including how the publication and the definition of species of interest and

conflicts of interest.



§ 2



Definition of terms



In this Ordinance means



and the issuer, the issuer of a financial instrument), which is the investment

the recommendation refers to, directly or indirectly,



(b) the dissemination of investment recommendations, his) publication, the surrender of the person

that is through publication of investment recommendations, or to ensure the

its public availability in any other way,



(c)) the related person controlling and controlled legal person ^ 3) or

legal entities forming the Group ^ 4),



(d) the person liable natural person) or legal person who, in

connection with the exercise of their profession or business form or

extends the investment recommendations



(e) a qualified person is required)



1. trading in securities, the credit institution and the person with them

linked,



2. any other person whose main business is the creation of

investment recommendations,



(f) the degree of investment recommendations recommendations) to "buy", "hold",

"sell" and similar to them.



§ 3



Rules for the fair presentation of investment recommendations



(1) a mandatory person shall ensure that an investment recommendation



and) are facts clearly distinguished from information that the facts are not, in particular,

interpretations, estimates or opinions,



(b) where there is doubt) about the reliability of sources used in its

the formation, it is clearly stated,



(c)) are clearly marked with all forecasts and price targets and reported

the essential basis for its creation,



d) is clearly and prominently listed person that is created, and it

in particular, the indication of the trade name or name of the entity or the name and

the last name of a natural person, and a person who is prepared, giving the name,

last name and function.



(2) a securities dealer or a credit institution shall ensure that the

investment recommendations contained in addition to the information referred to in paragraph 1 and

the designation of the administrative authority, which exercises supervision over that person; If

creator of the other party, which in the exercise of their activities shall be subject to

the rules of self-regulation, shall ensure that the investment recommendations contained

a link to these rules. This information can also be specified on the website,

For more information on published under this Ordinance.



§ 4



The rules for disclosure of interests and conflicts of interest



(1) the obliged entity shall publish the information about the circumstances of which he may

reasonably be expected to impair the objectivity of investment may

recommendations, in particular in them stating the information about each of their significant

financial interests or conflicts of interest concerning the financial instruments,

which the investment recommendations or the issuer.



(2) if the person is liable legal person,



a) provide information referred to in paragraph 1 and for all persons involved in

on the creation of the investment recommendation,



(b)) contains the information referred to in paragraph 1 at least information on the circumstances of the

in accordance with paragraph 1 of the legal person, and each linked person

are



1. available or can reasonably be expected that they are available,

persons involved in the creation of investment recommendations



2. known to persons who are not involved in the creation of the investment

recommendations, but have access to investment advice before it is

investment recommendations transmitted to the customers or the public; It

also applies in the case of persons for whom may reasonably be supposed to have

access to investment advice before the investment recommendations

thus granted or extended.



(3) investment recommendations contains information referred to in paragraphs 1 and 2 in the

your text. In the case where the public disclosure of the information would be

disproportionate to the length of the investment recommendation, it is sufficient to publish

This information in a manner allowing remote access and in the investment

the recommendations clearly indicate the Internet address of the place of the publication of these

information.



§ 5



Rules for the dissemination of investment recommendations created another

by a person



(1) where an obliged entity Extends to his own responsibility investment

recommendations created by another person, also contains investment recommendations

marking vectors, if this information is not explicitly clear from the

the circumstances in which an investment recommendation is extended.



(2) where an obliged entity extends the investment recommendations created by another

a person who has changed significantly, such investment recommendation shall clearly

and describe in detail made a significant change. If significant

change the investment recommendations in the change of the degree or direction of a recommendation,

for example, changing the recommendation to "buy" to "hold" recommendations or

"sell", or vice versa, the purveyor of the extent of this change satisfies the obligations

for the creator of a recommendation pursuant to § 3, 4 and 6.



(3) Required a person who is a legal entity itself or

through natural persons extends significantly altered the investment

recommendations, shall ensure that the beneficiaries of these investment recommendations to

be confined to the place where they gain access to information relating to another person

forming the investment recommendations to the original investment recommendation and to

information about the interests and conflicts of interest of that person, if they are

information is publicly available. Compliance with the procedure referred to in the first sentence, mandatory

a person who is a legal person shall ensure the internal regulation.



(4) paragraphs 2 and 3 shall not apply to news reporting on investment

the recommendations produced by another person, where there is no significant change in the

investment recommendations.



(5) when extending the investment summary recommendations created another

a person or a summary of several such recommendations required the person shall ensure

to this summary was clear, non-misleading, and contained an indication of the main

investment advice and a link to where you can find information

required by this recommendation if they are publicly accessible.



§ 6



Specific rules for the fair presentation of investment recommendations



(1) a qualified person who required investment recommendation has created,

or a natural person working for her, in particular, on the basis of an employment

or similar relationship, in addition to compliance with the obligations pursuant to section 3, in the creation of

investment recommendation shall use reasonable care to ensure

that



and in the investment recommendation are) adequately marked with all the relevant

sources of information including an issuer of financial tools and information, whether

the issuer was acquainted with the investment recommendation prior to its

enlargement and whether it was based on adjusted prior to enlargement,



(b)) in the investment recommendation is reasonably summarized method or the principles

valuation of the financial instruments of the issuer or establishing price targets,



(c)) in an investment recommendation is adequately explains the meaning of the recommendation,

in particular, its grade or time horizon,



d) investment recommendations contains a description of the potential risks, including

the placing of the influence of changes of essential elements used on the recommendation, e)

investment recommendations, where appropriate, an indication of the frequency or the future

update of the investment recommendation, if planned, and possibly also

notification of changes in these facts,



(f)) is clearly and prominently marked with the date on which the investment recommendations

for the first time is freed up to expand,



g) is clearly and prominently marked with the date or the time period to which the

covered by any information about the price of the financial instrument referred to in

investment recommendations



(h)), where during the last 12 months has changed the degree or direction

investment recommendation or target price relating to a particular

financial instrument or issuer, investment recommendations contains a clear

and a clear indication of this change and the date of publication of the prior

recommendations.



(2) in case when the fulfilment of obligations pursuant to paragraph 1. a), (b))

or (c)) it was disproportionate to the length of the investment recommendation,

the person referred to in paragraph 1 shall publish this information in a manner allowing

remote access and in the investment recommendation clearly and prominently marks the

the Internet address of the place of publication of the information.



§ 7



Special rules for disclosure of interests and conflicts of interest



(1) a qualified person is required, which are investment recommendations

shall be in addition to the information referred to in section 4 in the investment recommendations also



and information about your possible) direct and indirect holding in the

capital of the issuer more than 5%,



(b) information on the possible direct) and indirect share of the issuer in its

the registered capital of more than 5%,



(c)) the information concerning its possible other significant financial interests in the


relation to the issuer,



(d)), where such event occurred, information that



1. is the market maker or a person otherwise providing liquidity in relation to

financial instruments issued by the issuer,



2. in the last 12 months has been lead manager or spoluvedoucím

the Manager of a public offer of financial instruments issued by the issuer,



3. with the issuer has entered another agreement for the provision of investment

services,



4. has an agreement with the issuer relating to the production and dissemination of

investment recommendations.



(2) if the qualified person referred to in paragraph 1, required by the

the investment firm or a credit institution, the further



and information) that is the reward of the persons who are involved in the formation of

investment recommendations, derived from the shops of the qualified person

or related person,



(b)) in the case that investment processes in the context of recommendation

the public offer of financial instruments and natural person involved in

production of investment recommendations of an issuer's financial instruments acquired before

specified public offering ^ 5) information about this trade, including

date of trade and the price of financial instruments,



(c)), the framework of information about which there are organizational and

administrative measures and information barriers within the merchant's

the investment firm or credit institution, to prevent the emergence of conflict of interests in

relation to investment advice.



(3) a securities dealer or a credit institution at least once a

calendar quarter shall publish information on the



and the proportion of each degree) to the applicable investment recommendations

and



(b)) share issuers, which concerned the recommendation falling within each of the

degrees under (a)), to which a securities dealer or a credit

institutions in the past 12 months investment services

significant, separately for each grade under (a)).



(4) investment recommendations contains information referred to in paragraphs 1 to 3 in

your text. In the case where the public disclosure of the information would be

disproportionate to the length of the investment recommendation, it is sufficient to publish

This information in a manner allowing remote access and in the investment

the recommendation clearly and prominently indicate the Internet address of their place of

publication.



§ 8



Special rules for the dissemination of investment recommendations created

another person



As a securities dealer, a credit institution or a natural person who

for them, working in particular on the basis of employment or the like

relationship, when extending the investment recommendation created another

person in addition to the fulfilment of the obligations under paragraph 5 of



and in an investment recommendation or) at the Internet address to which

publishes additional information in accordance with this Ordinance, indicating the designation of the authority,

that of trader in securities or credit institution exercises

supervision,



(b)) in the case where not yet nerozšiřované extends investment recommendations

fulfils the obligations under section 7,



(c)), where significantly alters the growing investment recommendations

It shall proceed in accordance with § 3, 4, 6 and 7.



§ 9



Common provisions



(1) in the case where the investment recommendations in other than written form,

shall apply the procedure laid down in this Decree.



(2) modifying the disclosure of interests and conflicts of interest pursuant to this order shall

not apply if



and should be the subject of publication) the facts forming the Bank ^ 6) or

trade secret ^ 7),



b) compliance with this obligation would be contrary to organizational measures,

procedures to reduce the potential for conflicts of interest or lead to a breach of the

information barriers, introduced to limit the possibility of conflict of interest ^ 8).



(3) the rules laid down by this Decree shall not apply to journalists, if

This is in accordance with comparable rules of journalistic profession and in

the context of this activity did not acquire directly or indirectly any

benefit above and beyond the usual rewards.



§ 10



Transitional provision



Investment recommendations developed or distributed freely created after the acquisition of

the effectiveness of this Ordinance may not for 60 days from the effective date

the Decree, meet the requirements laid down by this Decree.



§ 11



The effectiveness of the



This Decree shall take effect on the date of its publication.



President:



Ing. Hollmann, MBA in r.



1) Commission Directive 2003/125/EC of 22 December 2004. December 2003, in which the

performed by European Parliament and Council Directive 2003/6/EC.



Directive of the European Parliament and of the Council 2003/6/EC of 28 June 1999. January 2003 on the

insider dealing and market manipulation (market abuse).



2) § 125 paragraph. 6 of Act No. 256/2004 Coll., on capital

market, as amended by Act No 56/2006 Sb.



3) §66A. 2 and 3 of the commercial code.



4) §66A. 7 of the commercial code.



5) § 34 paragraph 1. 1 of Act No. 256/2004 Coll., on capital

the market.



6) section 38 of Act No. 21/1992 Coll., on banks, as amended.



7) § 17 et seq. the commercial code.



8) § 12 para. 1 (b). (e)) of the law on the capital market.