A new approach to the integration of financial market supervision

Joint Press Release of the Czech National Bank and the Ministry of Finance of the Czech Republic

Today the Ministry of Finance and the Czech National Bank announced their plan for a considerable acceleration of the integration of the financial market supervisors. Instead of gradual integration by 2010, the joint proposal expects a single regulator to be established already next year. "The integration will allow a significant boost in the effectiveness of supervision and at the same time reduce the costs related to its performance," said Bohuslav Sobotka, First Deputy Prime Minister and Minister of Finance.

The integrated supervision should operate as a part of the Czech National Bank. 'The CNB's resources and experience together with the strengths of the other regulators will undoubtedly be a positive impulse leading to increased financial stability, which remains our priority," says Zdeněk Tůma, Governor of the Czech National Bank.

The financial market will also appreciate faster integration of supervisors. 'Supervisory rules and requirements in individual segments will be harmonised, and we will also prepare a harmonisation of legislative rules," says Bohuslav Sobotka.

The proposed integration schedule is as follows:

• adoption of legislation allowing integration - beginning of 2006
• integration of supervisors - spring 2006
• evaluation of experience, comprehensive legislation audit, incorporation into legislation concerning the CNB and financial market supervision - 2008

'We will also work on a new regulation of consumer protection on the financial market. A financial ombudsman, who would completely take over the issue of consumer protection in all areas of the financial market, should become active in the Czech Republic no later than in 2008," adds Bohuslav Sobotka.

More information:

Marek Zeman, Ministry of Finance spokesperson, tel.: 257 042 660
Pavlína Bolfová, CNB spokesperson, tel.: 224 412 012