1 Association of Financial Intermediaries and Financial Advisors of the Czech Republic CZECH REPUBLIC Association of Financial Intermediaries and Financial Advisors of the Czech Republic Mgr. Marta Gellová Secretary General AFIZ

2 Agenda 1.Introduction 2.Basic information on AFIZ 3.Three basic pillars of AFIZ activity 4.AFIZ project for setting professional standards and certification Association of Financial Intermediaries and Financial Advisors of the Czech Republic

3 Basic structure of products offered by AFIZ members Investment instruments (shares, bonds, certificates of funds) Pension funds - pension plans (product directly supported by the State) Insurance products (life and non life) Building savings accounts (building saving including loans) Mortgages Consumer loans and credit cards Association of Financial Intermediaries and Financial Advisors of the Czech Republic

4 Intermediation of individual products (tied agents) Independent intermediation (multi tied agents) Advisory services paid by the client (Fee based financial plan or advise) Management of personal portfolios Structure of financial intermediation and advisory services in the Czech market Association of Financial Intermediaries and Financial Advisors of the Czech Republic

5 Structure of intermediation activities Association of Financial Intermediaries and Financial Advisors of the Czech Republic ActivityQualification Requirements Requested Licenses Legal RegulationSupervisionNotes Financial AdviceNONETrade Certificate free trade No special leg. reg.; generally Trade Licensing Act only Trade Licensing Office Investment Advice NONETrade Certificate free trade No special leg. reg.; generally Trade Licensing Act only Trade Licensing Office Is changing with implementation of MIFID Intermediation of Bank Products, Intermediation of Non Bank Loans Intermediation of Pension Plans NONETrade Certificate free trade No special leg. reg.; generally Trade Licensing Act only Trade Licensing Office Intermediation of Investments Instruments Higher Ed. + Compuls. Profess. Seminar no exam. Registration with CNB Act on Undertaking on the Capital Market CNB Intermediation of Insurance Higher Ed. + Profess. exam Registration with CNB Act on Insurance Intermediaries CNB

6 Basic information on AFIZ Association of Financial Intermediaries and Financial Advisors of the Czech Republic Association founded in December 2002 as ARIZ ČR In December 2004 the association changes its name to AFIZ AFIZ has 4 employees and cooperates with 10 experts At present AFIZ has 1470 individual members and 10 corporate members Acts as a partner for the regulator AFIZ membership covers registered financial intermediaries in CZ Provides professional services for members Since May 2005 AFIZ has been a partner of CIFA – CIFA FORUM 2008 in PRAGUE Since April 2005 AFIZ has been a member of FECIF

7 AFIZ Services Association of Financial Intermediaries and Financial Advisors of the Czech Republic AFIZ INFO Client - provides professional advice within 72 hours AFIZ INFO Member – provides professional advice within 72 hours AFIZ SETTLEMENT AFIZ HELP Member – assistance in respect of administrative procedures or property litigation Support of investment intermediaries – MANUAL FOR MiFID AFIZ COMPLIANCE Corporation AFIZ AUDIT Corporation – assessment of implementation Regulator requirements Examining software

8 Basic Business Principles Association of Financial Intermediaries and Financial Advisors of the Czech Republic Business ETHICS Education, Certification,…Ethics Standards, code, disciplinary rules,… PROFICIENCY

9 Enforcement of members interests, cooperation with the state administration, cooperation with other professional organisations,… Intrernal rules, code of behavior, business conflict solutions,… Facultative forms of education, Certification system,… Professional service for members – different for individuals and for corporations AFIZ Basic Tasks Association of Financial Intermediaries and Financial Advisors of the Czech Republic PRIORITIES OF MEMBERS ETHICS S E R V I CE PROFICIENCY

10 Enforcement of Members Interests Association of Financial Intermediaries and Financial Advisors of the Czech Republic AFIZ – professional organization covering financial intermediaries and advisors in CZ AFIZ communicates with the Regulator and State Supervising Authority and promotes CO-REGULATION as the ideal way of cooperation AFIZ holds conferences, panel discussions and professional seminars AFIZ professionally enters the legislation process AFIZ is a member of the international organizations FECIF and CIFA AFIZ communicates with other professional organizations on the financial market AFIZ cooperates with organizations which focus on customer protection

11 AFIZ Ethics Association of Financial Intermediaries and Financial Advisors of the Czech Republic Articles of Association and Code of Ethic, Ethics Committee and Disciplinary Rules Functioning system of Ethics Committees work - internal disciplinary powers Disciplinary Rules - financial sanctions are different for individuals and corporations Preparation of amicable settlement procedures Coordination with consumer organizations

12 Proficiency of AFIZ Members Association of Financial Intermediaries and Financial Advisors of the Czech Republic Provision of professional and legal advisory services for members Educational activities for members Commercial educational seminars for professional public Cooperation with prestigious Czech universities Project towards certification of financial specialists

13 Certification of financial specialists by AFIZ for personal financial planning Complex knowledge and application across the whole financial market Financial specialist Basic knowledge of economics, legislation, regulation, financial market, fin. mathematics, all types of fin. products in general, marketing, ethics, etc. I. II. III. Association of Financial Intermediaries and Financial Advisors of the Czech Republic Pensions Specialist Insurance Specialist Investment Specialist Housing Specialist Financial specialist (Advisor) Complex knowledge in fin. market sector and its application in practice

14 Thank you for attention Association of Financial Intermediaries and Financial Advisors of the Czech Republic Association of Financial Intermediaries and Financial Advisors of Czech Republic 2007 ©