Czech Securities Commission
As of 1 April 2006, the activities of the Czech Securities Commission were taken over by the
Czech National Bank
The Czech Securities Commission ceased to exist from 1 April 2006
General Information
Persons Offering Investment Services without Licence
This document is intended for:
Investors entering the capital market
Why is it dangerous to entrust your money to a person not having the right licence?
If you invest via persons who are not authorized to provide investment services (unlicensed or unregistered persons), then it is probable that you will never see your money again.
If you invest via these persons, the risk of losing your money significantly increases. Most of these persons are not honest businessmen.
What are investment services and who is authorized to provide them?
The definition of investment services can be found in the Act on Business Activities on the Capital Market. They may be provided only by licensed entities – investment firms.
For example, investment services include:
- reception and transmission of orders in relation to investment instruments (e.g. securities and derivatives);
- execution of orders in relation to investment instruments for a third party account;
- management of assets of a client under a contract with the client, if an investment instrument is part of such assets.
What can be encountered in practice?
Here are some examples of offers of investment services:
- … we offer purchase or sale of securities (shares, bonds, futures, options)…
- … we will enable you to enter foreign markets (capital market, commodity market)….
- … we will take care of your securities, portfolio…
- … we will buy your securities (most frequently shares)…
- … we will enable you to invest on the foreign exchange market (FOREX)…
- … we will increase the value of your assets on foreign stock exchanges…
Investment firms are allowed to provide only services stated in the licence granted by the Commission.
The investment service reception and transmission of orders in relation to certain securities may be also provided by an investment intermediary. The activity of an investment intermediary may only be carried out by a person registered with the Commission. An investment intermediary may not receive cash funds or investment instruments of clients.
How to find out who is not authorized to provide investment services?
Persons authorized to provide investment services are included in the list maintained by the Commission. Other persons are not authorized to provide investment services!!! Always check with the Commission that the person you are dealing with has an appropriate licence granted by the Commission!!! Never sign any contract you do not understand and never send your money to a person or company without making sure it has the appropriate licence!!!
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