What Does the RTS on SCA Bring with Regard to Statutory Audits?

Regulatory technical standards for strong customer authentication (the “RTS to SCA”), which entered into force on 14 September 2019, brought about a number of new obligations to payment service providers, including banks and payment institutions. Although the media mention, in particular, new obligations related to the requirements for strong customer authentication, in particular when initiating electronic payments (whether it is card payments in the store, the purchase of goods in an e-shop, entering an order in online banking or other acts), which must newly be a two-factor one (i.e. consisting of a combination of two or more elements from the category of ‘knowledge’, ‘possession’ and ‘inherence’), the above regulation also brings about new obligations of a purely internal nature. Specifically, the obligation to carry out internal audits, namely the audit of security measures (“audit of security measures”) as well as an audit of the way in which the so-called transaction risk analysis (“TRA audit”) is carried out. What are these two types of audits about and what is their substance? 

Personal Data Processing News

This time we focus on the most important findings from the published information regarding inspections and decisions of the Office for Personal Data Protection in the first half of 2019. We are also reporting on further development concerning codes of conduct and certifications, on the procedure in the event of a security breach and procedure for informing customers about personal data processing, on an important decision related to cookies, and on an effort to unify the procedure for issuing penalties in Germany, and possibly the whole EU. 

Filing a Motion with the Office for the Protection of Competition Will Be Free of Charge Again

On 13 November 2019, the Constitutional Court announced a major ruling in the area of public procurement, which will have a significant impact on the review of procurement procedures by the public. It is now possible again to file motions with the Office for the Protection of Competition regarding errors in public tenders without the necessity to pay the administrative charge of CZK 10,000. 

How to correctly set up company compliance? Sensible rules and realistic expectations are key

Compliance is a phenomenon that attracts increasing attention in business circles. An effective compliance programme, from well-prepared codes of ethics to a balanced system of responsibility enforcement, is the foundation of high-quality, successful and secure corporate governance. However, keeping pace with the times and following the most modern trends is not an easy task for a company. Do you know how to set up such a company compliance system the right way? 

Insurance update: the Czech National Bank published answers to the most frequent questions regarding certain provisions of the Act on the Distribution of Insurance and Reinsurance

On 27 September 2019, the Czech National Bank (the “CNB”) published responses to the most frequent questions (“FAQ”)regarding Act No. 170/2018 Coll. on the Distribution of Insurance and Reinsurance, as amended (the “Act”), on its website. Responses are not a binding interpretation of a legal regulation; however, they provide practical guidance for the application of certain problematic provisions of the act. The published document summarises for example the conditions under which the Act will apply to operators of web insurance comparison programmes, obligation to obtain information from customers and provide recommendations and advice or the issue of the conflict of interest in insurance claims handling. 

Legal News in e-Commerce, Blockchain and FinTech

The latest news in the area of e-commerce includes the adoption of an EU regulation for multilateral platforms, a bill that may enable the utilisation of banking identities in online legal acts, new obligations concerning Strong Customer Authentication and progress achieved in the implementation of new consumer directives. As a matter of interest, we are also presenting a study focusing on appropriate forms of communicating legal information. 

Legal Risks in Property Acquisition

In recent years, the Czech Republic has experienced a stable growth of real estate prices, especially with regard to apartments and buildings for commercial use, such as offices or business premises. As a result, the real estate market is offering ideal conditions for vendors at present. On the contrary, a weaker position stems in this situation for buyers, especially as to their negotiation strength and possibilities for affecting the form of transactions. To put it simply, buyers cannot dictate too much as there are not so many suitable offers. Contrarily, there are usually more interested parties. The above-mentioned circumstances then exert pressure on real estate investors to diminish their prudence regarding an appropriate treatment of potential legal risks related to the real estate acquired, in addition to other transaction parameters. However, we can by no means recommend such a concession from prudence in respect of legal risks. 

Posting employees within the EU – half-time in the implementation of the new directive

Free movement of services as the basic principle of the internal market of the European Union has brought the necessity to coordinate conditions under which companies in one member state can assign their employees to another member state to provide services. 

Uncertainties regarding the processing of biometric data persist; experts’ opinions on their processing differ

In recent months, the Office for Personal Data Protection (the “Office”) has attracted the attention of both the professional and non-professional public with its decisions or statements on the processing of biometric data, specifically in relation to dynamic biometric signature and attendance systems. As there are a number of open issues with regard to the new data protection legislation, the opinions and approaches of experts regarding the conditions under which data may be processed differ as well. What does the professional debate currently deal with?