- Public offering of securities
- Admission of securities to the regulated market
- Prospectus approval procedure
- License to provide investment services
- Licence to acquire a qualifying holding in a brokerage company
- License for a board member in a brokerage company
- License for a member of the supervisory board
- Broker license
- Tied agent licence
- Authorization to access auction systems
A more detailed description of the individual elements of the application
Status of the brokerage company
It is organized in the form of a joint-stock company, an European joint-stock company or a limited liability company (d.o.o.). The company can only perform activities listed in Article 176 ZTFI-1. The minimum amount of the founding capital of a brokerage company is determined in Article 11 of the ZBNIP. The shares of the company can only be registered in the name, can only be paid in cash and must be paid in full before the establishment or increase of the share capital that is registered in the court register. Company shares must be issued as a dematerialized securities registered in the central register. The company can choose a two-tier management system with a management and a supervisory board or a one-tier management system with a board of directors. If the company is in the form of limited liability company, it must have a supervisory board.
The application shall include the initial business plan for the next three years, the organizational structure and internal control systems, information on the guarantee scheme for investors, a list of functions, services or activities to be outsourced, measures for identification and prevention or control of the conflicts of interest, information on systems for monitoring compliance, internal control and risk management, information on systems for assessing and managing risks related to money laundering and terrorist financing, business continuity plan, policies related to the management, management and retention of records and description of work company procedures.
The founding capital of the company
EUR 750,000, if the company also carries out trading for its own account or underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis. EUR 150,000 if the company provides other investment services and activities. Exceptionally, the founding capital of the company may be EUR 75,000, if the company is not allowed to manage clients' money or financial instruments and would otherwise have to have a founding capital of EUR 150,000. The founding capital of the company must be in accordance with Article 9 of Regulation 2019/2033/EU.
It includes a clear organizational structure with well-defined, transparent and consistent internal relationships of responsibility, effective processes for identifying, managing, monitoring and reporting of risks to which the company is or could be exposed or caused by it, or risks to the company that may be caused by others. It must also define appropriate internal control mechanisms that include reliable administrative and accounting procedures (including procedures for verifying the adequacy of risk management), appropriate and gender-neutral remuneration policies and practices that are in line with prudent and effective risk management which is also encouraged. Internal management arrangements must be appropriate and proportionate in relation to the nature, scope and complexity of the risks arising from the business model and activities of the brokerage company.
The company must establish a plan of activities for risk management, which includes, in particular, procedures for identifying, measuring or evaluating, controlling and mitigating risks, as well as the method of monitoring the implementation of these procedures. The plan must specify procedures and activities for the management of each type of risk to which the company is exposed or could be exposed in its provision of individual types of services or activities. The company must organize a risk management function that is directly subordinate to the company's management body in a managerial capacity and functionally and organizationally separate from other company functions, and must take into account the nature, scope and complexity of the activities it performs. The risk management function must be lead by a person in the position of a senior manager in the company. In particular, the company must manage the following: significant sources and effects of customer risk and any significant impact on capital, market risks, risks to the company, especially those that could reduce the level of available capital and liquidity risk in appropriate set of time periods to ensure that the company maintains adequate levels of liquid assets.