MPP_PRFI Legal investor protection

Faculty of Economics and Administration
Autumn 2022
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Mgr. Ing. Filip Hampl, Ph.D., LL.M. (lecturer)
Guaranteed by
Mgr. Ing. Filip Hampl, Ph.D., LL.M.
Department of Law – Faculty of Economics and Administration
Contact Person: Lenka Hráčková
Supplier department: Department of Law – Faculty of Economics and Administration
Timetable
Tue 20. 9. 10:00–11:50 P201, Tue 4. 10. 10:00–11:50 P201, Tue 11. 10. 10:00–11:50 P201, Tue 18. 10. 10:00–11:50 P201, Tue 25. 10. 10:00–11:50 P201, Tue 8. 11. 10:00–11:50 P201, Tue 22. 11. 10:00–11:50 P201
  • Timetable of Seminar Groups:
MPP_PRFI/01: Wed 10:00–11:50 VT202, except Wed 14. 9., except Wed 2. 11., F. Hampl
MPP_PRFI/02: Wed 12:00–13:50 VT202, except Wed 14. 9., except Wed 2. 11., F. Hampl
Prerequisites
The course requires basic knowledge and skills in the areas of:
- theory of law (financial market regulation),
- company organization,
- basics of private law (corporate law, regulation of contractual relations, consumer law),
- administrative procedure (general regulation of the administrative procedure and special regulation for an administrative procedure - Czech National Bank, Czech Trade Inspection Authority, etc.),
- European law
This knowledge can be acquired in the following courses:
Introduction to Law, Business Law 1, European Union and Law.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
The course is designed as an introduction to legal protection of persons in a weaker position, investors, in the financial market and is intended for both specializations of the follow-up master's degree program Finance. The aim of the course is to introduce the public law protection of investors (i) in acting on the financial (capital) market from the point of view of substantive and procedural law (both Czech and European) with regard to financial innovations in recent years and (ii) in fulfilling tax obligations associated with investments. Public legal protection of investors on the capital market is placed in the context of the private legal protection of persons in a weaker position, especially consumers. Attention is paid to administrative procedure and other possibilities of alternative dispute resolution (ADR/ODR), which represent a procedural realization of substantive investor legal protection, as well as the means of legal protection within these procedures and tax administration.
Learning outcomes
After completing the course students will be able to:
1. to be familiar with the legal framework for the public legal protection of investor as a person in a weaker position on financial markets and to differentiate between private or public legal protection,
2. to clarify the basic theoretical basis of the legal regulation of investor protection on the financial market in the Czech Republic and the European Union,
3. to formulate basic principles of legal liability regarding investor protection on the financial market,
4. to make competent decisions to enforce legitimate claims resulting from the protection of a weaker party (investor) on the financial market in general and in the special case of the consumer,
5. to be familiar with basic concepts of administrative procedure and tax administration (tax procedure) for a realization of substantial law regarding investor protection regulation,
6. to apply means of protection within the framework of administrative proceedings and tax administration (tax procedure).
Syllabus
  • Lectures:
  • 1. Legal protection of investors in the financial (capital) market. Substance, the importance of investor legal protection for the financial stability and fundamental principles of the legal protection of investors in the financial market. Private and public investor protection law. The place of investor protection within the law system. Sources of investor protection law (constitutional, civil, administrative-legal and criminal law principles). The distinction between direct and indirect investor protection.
  • 2. Private protection of investor according to the Civil Code with a focus on investor-consumer. Civil liability. Public protection of the investor-consumer according to the Consumer Protection Act (unfair business practices, aggressive business practices, deceptive business practices).
  • 3. Systematics of investor public legal protection on the capital market regarding intermediation of investment services and fund investment (overview of the legal regulation of conducting business on the capital market and collecting financial means according to the Act on Management Companies and Investment Funds). Professional and non-professional client.
  • 4. Direct investor protection when dealing with investment service providers. General duties of investment service providers to deal with a client with professional care. Information duties. Importance of the EU law for investor protection - MiFID II, MiFIR, MAR, CSMAD, Prospectus Regulation. The Czech National Bank as a guarantor of compliance with investor protection rules, investor-related alternative dispute resolution bodies (ADR/ODR).
  • 5. Investor public legal protection in the field of FinTech with a focus on virtual assets, initial token offerings and blockchain law; national, European and international perpective.
  • 6. Investor public legal protection regarding tax obligations related to investments on the financial market. Introduction to the tax administration and tax procedure. Tax law in the system of law. Legal regulation of the tax administration and tax procedure. Basic terms and institutes of the tax administration and the course of tax procedure. Overview of legal protection means provided by the Tax Code (ordinary and extraordinary remedies, supervisory means, other means of legal protection).
  • Seminars:
  • 1. Introductory seminar. Systematics of law. Concept, basic principles and differentiation of private and public law. The distinction between substantive and procedural law and the importance of procedural law for the substantive law realization. The relation between Czech, European and international law. Sources of legal information.
  • 2. Investor as a person in a weaker position. Material sources of legal protection of an investor as a person in a weaker position. The distinction between private and public investor protection law.
  • 3. The concept and starting points for protecting a person in a weaker position under in the Civil Code. Private legal protection of a person in a weaker position (investor). The distinction between the terms consumer and entrepreneur and the term client used in the financial market regulation.
  • 4. Concepts of private legal protection of investors as a person in a weaker position. Investor-consumer protection under the Civil Code. Overlap into the public investor-consumer protection under the Consumer Protection Act (unfair business practices, aggressive business practices, deceptive business practices). Case studies.
  • 5. Overview of alternative dispute resolution (ADR / ODR) bodies between investors and investment service providers. Procedural realization of substantive law at these bodies. Administrative procedure I: the architecture of legal regulation governing administrative procedure, subsidiarity of the Rule of Administrative Procedure; basic principles of the administrative procedure; characteristics of the administrative procedure (initiation, evidence, decision, remedies).
  • 6. Administrative procedure II: Communication with the administrative body with an emphasis on electronic communication in the regime of the eIDAS regulation; general and special administrative procedure. Arbitration, conciliation, and mediation. The Czech National Bank as a guarantor of compliance with the rules of investor protection in the financial markets. Mid-term test.
  • 7. Investor public legal protection on the capital market regarding investment services intermediation and fund investment I. Special Administrative Procedure conducted by the Financial Arbitrator of the Czech Republic (FACR). Case studies.
  • 8. Investor public legal protection on the capital market regarding investment services intermediation and fund investment II. Case studies. Conciliation conducted by the Czech Trade Inspection Authority.
  • 9. Introduction to investor protection regarding tax obligations. Tax administration as a process of realization of substantive tax law – fundamental terms and institutes, terminology, and the course of tax procedure. Comparison of tax and administrative procedure. Case studies.
  • 10. Means of individual rights protection in the tax administration. Means of individual rights protection offered by the Tax Code I. Case studies.
  • 11. Means of individual rights protection in the tax administration. Means of individual rights protection offered by the Tax Code II. Case studies. Protection provided under the administrative justice system.
  • 12. Discussion.
  • Students of this course use the services of the following web portal www.pravoesf.cz and legal information system ASPI during the classes. ASPI is accessible from the computer laboratories of the Faculty of Economics and Administration and via remote desktop by terminal server Orion. Detailed description of how to login is posted on the main website of the Faculty of Economics and Administration.
  • Interactive study materials were created for the purpose of education within the course Law and Finance. These materials can be found at the web portal pravoesf.econ.muni.cz. Law and Finance study materials are designated for self-study, which is considered as a substitute for standard lectures, and for preparation for seminars, where you will solve practical tasks independently. Please, also pay attention to the study materials of the following courses: Introduction to Law, Business Law 1, Administrative Law and Administrative Process, and European Law. There are basic legal concepts explained in the above-mentioned study materials. Knowledge of these concepts is assumed for understanding the issues of the Law and Finance course, which is conceived as a cross-section of several areas of law. Thanks to that you will better understand the wider context of consumer protection in financial markets in the Czech Republic and also the risk connected with financial services.
Literature
    required literature
  • Šedová, J., Hampl, F. Studijní text “Právo a finance”. Terminálový server ESF MU (Návod na připojení na terminálový server je uveden zde: https://www.econ.muni.cz/it-sluzby/terminalovy-server-orion).
  • VLACHOVÁ, Barbora. Rozhodování správních orgánů ve spotřebitelských sporech. Vydání první. V Praze: C.H. Beck, 2021, xv, 113. ISBN 9788074008115. info
  • GORTSOS, Christos. Stricto Sensu Investor Protection under MiFID II: A Systematic Overview of Articles 24-30. 1st ed. Cambridge: Cambridge Scholars Publishing, 2018, 248 pp. ISBN 978-1-5275-1128-6. info
  • Daňový řád : komentář. Edited by Ondřej Lichnovský - Roman Ondrýsek - Petra Eckert Nováková - Eva. 4. vydání. V Praze: C.H. Beck, 2021, xx, 1062. ISBN 9788074008382. info
    recommended literature
  • TULÁČEK, Michal. Elektronizace správy daní : právní aspekty. Vydání první. Praha: Leges, 2020, 216 stran. ISBN 9788075024343. info
  • TINTĚRA, Tomáš and Pavel PETR. Základy závazkového práva. 2. aktualizované vydání. Praha: Leges, 2020, 288 stran. ISBN 9788075024763. info
  • Foltas, T. Studijní texty „Základy práva", "Správní proces“. ESF MU. Portál výuky právních předmětů ESF: Webová adresa: http://pravoesf.econ.muni.cz/.
Teaching methods
Lectures, seminars, solving case studies, discussion, self-study, mid-term assessment test.
Assessment methods
The course is concluded with a written exam. To pass the written exam students need to get at least 60% points. The requirements for admission to the exam are seminar attendance (max. 3 unexcused absences), positive evaluation of the completed written assignment, successfully passing mid-term assessment test (i.e. at least 60% points). The overall evaluation of the course is given by the sum of points from the written exam (80% of the final grade) and the mid-term assessment test (20% of the final grade). In addition, students can be rewarded with a given set of bonus points for their active seminar participation during the semester. These bonus points are added to the overall evaluation of the course if the written exam is successfully passed (i.e. min. 60% points).

Caution: "Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination."
Language of instruction
Czech
Follow-Up Courses
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
General note: Nezapisují si studenti, kteří absolvovali předmět PPPAFI.
The course is also listed under the following terms Autumn 2009, Autumn 2010, Autumn 2011, Autumn 2012, Autumn 2013, Autumn 2014, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (Autumn 2022, recent)
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