carrying on their business in the Czech Republic on the basis of authorisation granted in the United Kingdom of Great Britain and Northern Ireland in view of the end of the transition period
The Czech National Bank hereby notifies clients and beneficiaries who have contractual relationships with foreign financial institutions other than credit institutions and insurance companies providing products and services in the Czech Republic on the basis of authorisation granted in the United Kingdom of Great Britain and Northern Ireland (“UK”) including Gibraltar (“institutions concerned”) that after the end of the transition period under Article 126 of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (“transition period”), i.e. on 1 January 2021, the authorisation of foreign credit institutions to carry on their business in the Czech Republic (under the single European passport) will end.
The institutions concerned will only be authorised to carry on activities in the Czech Republic that are necessary to settle claims and debts arising from contractual relationships concluded before the end of the transition period. The institutions concerned may not enter new contractual relationships or broaden the scope of existing obligations in any way. Their further actions should be aimed at settling their obligations in the Czech Republic and terminating their activities in the Czech Republic. Authorisation to carry on financial institution activities pursuant to the relevant sectoral legislation is necessary for the provision financial services.
Any termination of the authorisation of the institutions concerned to carry on their business in the Czech Republic is without prejudice to the validity of existing contracts.
If you have a contract with one of the institutions concerned or are a beneficiary of such a contract, the Czech National Bank expects the institution concerned to inform you of the legal consequences of the end of the transition period in respect of the rights and obligations arising from contracts and also of the actions that will be taken by the institution concerned to settle all claims and debts arising from these contracts.
The Czech National Bank will supervise compliance with these duties by the institutions concerned in the Czech Republic.
However, the Czech National Bank will not supervise compliance with rules of conduct towards clients if the service provider has a registered office in the UK and carries on its activities in the Czech Republic in a form other than through a branch or other permanent presence (e.g. on a cross-border basis over the Internet).