The purchase of foreign securities is subject to anew duty to report now. Natural persons and legal entities with permanent residency in the Czech Republic shall report facts concerning the creation of or a change in the portfolio of foreign securities and related payments and settlements through the delivery of the completed form OZP (ÈNB)15-97 to the Czech National Bank within 15 calendar days from the end of the quarter, in which the securities were transferred or assigned or when the person with permanent residency in the Czech Republic learnt of the transfer or assignment or may have learnt thereof. The duty to report shall apply to both natural persons and legal entities. The duty to report shall not apply to persons who are permitted to render investment services, insurance companies, pension funds, investment companies and investment funds.The duty to report shall further not apply to transfers of foreign securities carried out through persons, the objects of whose activity is rendering investment services or collective investing.

Thus, the duty to report shall apply also to shares and other securities that are obtained byadomestic employee as equity share in a corporation abroad, which belongs to the group of their employer, either directly or though an employee investment fund.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.