The Czech National Bank’s statement on offering bond issues over internet platforms

The Czech National Bank (CNB) has published their response to an enquiry on offering of bond issues over internet platforms.

The statement aims to answer the question whether an operation of an internet platform designated to offering bond issues falls under the definition of provision of investment services under the Capital Market Undertakings Act (Act).^[1] The CNB’s response also provides three model examples of internet platforms for bond issues with an evaluation of their activities and services with respect to the Act.

According to the CNB, the operation of internet platform designated for bond issues offers may in some cases fulfil the characteristics set out for providing of some of the main investment services under the Act, whereas such internet platform operation may be considered an investment advisory service for investment instruments or a receipt or provision of instructions to the customers. In relation to the issuers, the characteristics of investment service of placing investment instruments may be met. These services may only be provided under a license issued by the CNB (unless stated otherwise in the Act or in another legal regulation). Therefore, it is advisable to get acquainted with this CNB statement since it pays attention to the criteria to be taken into account when evaluating these licensed services.

Please see more information regarding the abovementioned in Czech on the CNB website.

 

[1]  Act no. 256/2004 Coll., on Capital Market Undertakings Act, as amended.