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Investor Presentaiton

Solvency II, a new, harmonised EU-wide insurance regulatory regime, became fully applicable on 1 January 2016 in all EU member states, including the Czech Republic. LICENCES The licensing of banks and other financial institutions and matters connected with mergers and acquisitions and other market entries are fully within the responsibilities of the CNB. A foreign financial institution can enter the Czech market in the following four ways: as a new company, with up to 100 percent foreign ownership; • by acquiring an equity stake in an existing entity; • by establishing a branch of the parent institution with a separate licence; by establishing a financial institution of the parent based on the licence of the parent institution (applicable to all banks and insurance companies with a registered office in the EU under the "single licence principle"). 63
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