Notification to entities from another Member States performing the financial intermediation within the insurance or reinsurance sector on the territory of the Slovak Republic
On 1 January 2010, Act No. 186/2009 on Financial Intermediation and Financial Counselling and on amendments and supplements to certain laws (hereinafter referred to as the "Act") entered into force. After entry of this Act into force, Article 1 of Act No. 340/2005 Coll. on Insurance Intermediation and Reinsurance Intermediation and on amendments and supplements to certain laws, was repealed.
The Act regulates financial intermediation and financial counselling in five sectors of the financial market: insurance and reinsurance, capital market, supplementary pension saving, receiving of deposits, granting credits.
An insurance agent from another Member State and a reinsurance agent from another Member State, according to regulations valid so far (Act No. 340/2005 Coll.), in accordance with Article 41.(1) of the Act, shall mean a financial agent from other Member State in the Insurance or Reinsurance sector by law.
In accordance with Article 11 (1) of the Act, a financial agent from another Member State in the Insurance and Reinsurance sector is entitled to pursue financial intermediation or financial counselling in the Insurance or Reinsurance Sector in the territory of the Slovak Republic at the extent to which they are entitled to pursue financial intermediation or financial counselling in the Insurance or Reinsurance sector in their Home Member State, either through an intermediary or upon right to independent service provision.
Pursuant to Article 11 (2) of the Act, each financial agent from another Member State in the Insurance or Reinsurance Sector is obliged in public interest to follow provisions of Article 11 (4), Article 28, Article 30 (1), Article 31, Article 32, Article 33, Article 34, Article 35 of the Act.
Financial agents from another Member State who had started to pursue their activity in the territory of the Slovak Republic prior to 1 January 2010, must bring their activity in line with the provisions of the Act during the course of the year 2010. The above-indicated means that, in the course of the year 2010, they may pursue their activity in accordance with regulations valid so far (Act No. 340/2005 Coll.). As of 1 January 2011, they are obliged to follow all above-indicated provisions of the Act.
At the same time, we point out that Slovak laws and regulations not directly applying to financial intermediation and financial counselling supervision, but governing the pursuance of such business activities, are valid and need to be followed when pursuing these activities in the Slovak Republic (e.g. Act No. 297/2008 Coll. on protection against legalisation of proceeds from criminal activity and on amendments and supplements to certain laws).
Update: February 2010