The Czech National Bank’s approach to providing answers to professional queries on financial market regulation

As the financial market supervisory authority, the Czech National Bank supports financial market participants by clarifying legal queries in order to facilitate compliance with, and prevent breaches of, financial market regulations.

This support is not meant to substitute for financial market participants’ own analyses and legal or economic counsel. Therefore, the Czech National Bank expects such queries to comply with the rules for so-called qualified queries described below. The Czech National Bank also considers it useful to inform market participants about the significance of its answers to qualified queries.

I. Definition of the qualified query

1. The query should relate directly to the competences of the Czech National Bank on the financial market

A query is considered relevant if it focuses on the interpretation of legal provisions regulating the financial market or is significant for the performance of activities supervised by the Czech National Bank.

2. The query should be in written form

The Czech National Bank also considers a query to be in written form if it is sent using the form available on its website.

3. The query should contain sufficient information

In addition to containing the question itself and the factual circumstances relevant to the answer, the query should specify the legal rule that requires interpretation (the provision of a law or decree, the article of an official information document, etc.). The query should be specific enough so that it is clear that it does not relate to abstract matters, but addresses a problem that the market participant encounters in practice.

One relevant piece of information is the identity of the applicant, i.e. the recipient and user of the answer. If the answer is being sought by a representative of a client (an attorney, auditor or other counsellor), the client should be identified as well.

4. The query should include an analysis of the issue and a proposed solution

The applicant should include an analysis of the issue, identify the points that it finds to be unclear, and comment on the possible solution. In usual cases, there is no reason for the Czech National Bank to comment on general questions, on how a particular situation should be addressed, or on which regulations are relevant to that situation. Such questions should be answered by financial market participants themselves or with the assistance of their counsels. As the financial market supervisory authority, the Czech National Bank has neither the intention nor the capacity to substitute for them. The purpose of the answers of the Czech National Bank as the financial market supervisory authority is to provide an interpretation of relevant regulations when they appear unclear or ambiguous.

The analysis prepared by the applicant also helps clarify the matter in question.

II. Significance of answers to qualified queries

The Czech National Bank intends to proceed vis-à-vis the applicant in accordance with its answer to the qualified query. Therefore, if the applicant (or other relevant person) acts in compliance with the answer under the conditions specified in the query and the answer, the Czech National Bank will consider such conduct to be compliant with the legal rules that the answer refers to.

The answers of the Czech National Bank are relevant only to the person stated in the query and only within the particular circumstances described in the query. They do not apply in any way to third parties. The statement of the Czech National Bank should not be applied to other situations, however similar they may appear.

If the applicant acts on the basis of facts which could not, with regard to the wording of the query, be taken into account, or if the relevant facts or applicable regulations change, the statement of the Czech National Bank shall no longer be applicable.

The Czech National Bank’s answer cannot preclude any decisions of the courts or other authorities and their interpretation of the relevant legal regulations.