New structure of financial market supervision

The CNB’s Financial Market Supervision Department is to change its internal structure on 1 March 2011 with the aim of further streamlining its activities. The Department’s divisions will be redefined according to functional specialisation. Each division will supervise financial institutions across all sectors of the financial market in its assigned area. Four divisions will be established: the Prudence Supervision Division, the Professional Care Supervision Division, the Prudence Control Division and the Professional Care Control Division.

The change in the organisation structure of the Financial Market Supervision Department reflects the favourable experience with the functional arrangement of activities at the CNB. For the last three years the divisions of the Financial Market Supervision Department have been broken down by sector, i.e. they have been supervising credit and payment institutions, insurance companies and the capital market separately.

The change in the internal structure of the Financial Market Supervision Department will result in a reduction of the number of divisions from five to four. The “supervision” divisions will deal with off-site supervision, while the “control” divisions will exercise on-site supervision. The “prudence” divisions will focus on compliance with prudential rules, such as the capital adequacy and solvency rules, while the “professional care” divisions will supervise financial institutions’ compliance with the rules of professional care vis-à-vis clients and other financial market participants.

Martin Burjánek will become Director of the Prudence Supervision Division, Václav Simon will become Director of the Professional Care Division, Jiří Kalivoda will become Director of the Prudence Control Division and Hynek Černý will become Director of the Professional Care Control Division.

Brief profiles of directors of the newly established divisions:

Martin Burjánek (42) graduated in economics and management of the mining industry from the Moscow Mining Institute. After graduating in 1992 he worked in various managerial positions in numerous financial institutions. He has worked at the CNB since 2008. Since July 2008 he has been in charge of the capital market proceedings rules and professional care supervision unit. In 2011 he was appointed Director of the Credit and Payment Institutions Supervision Division. Martin Burjánek speaks English and Russian.

Václav Simon (37) graduated in economic policy from the Faculty of Economics at the University of Economics in Prague and in sociology from the Faculty of Arts at Charles University. Since 2000 he has worked in capital market supervision, specialising in investment instrument markets. In the past he held the posts of deputy stock exchange commissioner and stock exchange commissioner. After joining the CNB in 2006, he was put in charge of the Markets and Settlement Division. In 2008 he became head of the Capital Market Supervision Division. He has participated in numerous domestic and foreign seminars and courses. He speaks English and Russian.

Jiří Kalivoda (33) graduated from the Faculty of Finance and Accounting at the University of Economics in Prague. He was employed at the CNB as a banking supervision inspector in 2000–2005. He then worked in insurance-oriented financial institutions. He returned to the Czech National Bank in 2007 and was appointed Director of the Insurance Supervision Division in 2008. He has participated in numerous domestic and foreign seminars and courses. He speaks English and German.

Hynek Černý (53) graduated from the Institute of Chemical Technology in Prague. He worked in numerous financial institutions as a portfolio manager and a bond market broker. He has worked in capital market supervision since 2001. In 2007 he was put in charge of the CNB’s Collective Investment and Pension Funds Division. In 2008 he was appointed Director of the Proceedings Rules and Professional Care Control Division. He has participated in numerous domestic and foreign seminars and courses. Since 1993 he has been a licensed broker. He speaks German and English.

Marek Petruš, CNB spokesman