CNB cuts red tape further: relief package for the financial market enters into force
The Czech National Bank is simplifying doing business in the financial market. As of 1 July 2025, it will abolish dozens of redundant rules and unjustified administrative requirements set out in 19 decrees. This will ease the regulatory burden on financial institutions, allowing them to devote more time and resources to client care, innovation and service development. The CNB’s decision is based on the findings of its own gold plating analysis in the area of financial market regulation, completed earlier this year.
The new decree, effective from 1 July 2025, will eliminate requirements in areas governed by EU law where Czech legislation has so far gone beyond the relevant EU rules. Most often these are details of rules laid down by law or administrative acts that are no longer of practical use.
“We have already scrapped 14 official information documents and are now getting rid of more rules and reporting duties from our decrees – 36 unnecessary measures in total. We’re delivering on our promise. Financial institutions will no longer have to complete reports that provide no new information or resubmit information the CNB already has. We’re cutting red tape and making it easier to do business. Our aim is clear: less paperwork, more room for business,” said Czech National Bank Governor Aleš Michl.
A number of obligations are set out directly in law, and changes to legislation do not fall within the remit of the central bank. The CNB has therefore proposed to the Ministry of Finance the abolition of a further 41 obligations or restrictions that could significantly reduce the regulatory burden on the financial market.
In recent decades, there has been a substantial increase in regulatory requirements in financial services – often due to gold plating, i.e. where Czech regulations impose additional obligations on market participants beyond those required by the European Union. This has resulted in higher administrative and operational costs, which may indirectly affect the availability and prices of financial services for clients. The change introduced by the CNB contributes to improving the regulatory environment, strengthens competitiveness and supports the further development of the financial market in the Czech Republic.
Selected examples of changes
Banks and branches of foreign banks
The loan concentration and profit distribution statements are being abolished. The CNB will obtain the necessary data from other sources, saving banks time and reporting costs.
National requirements on risk management, asset assessment and information disclosure are being repealed – European regulation and international accounting standards (for example, IFRS 9) are sufficient.
Collective investment
Real estate fund administrators are no longer required to report detailed information on the expert committee – such as its members’ education and professional experience – separately to the CNB. The CNB will obtain the information it needs about the expert committee for the purpose of carrying out its tasks from other available sources.
The “Structure of assets of a managed fund” statement is being abolished, as most of the information it contains can be obtained from other, more detailed statements. European regulation does not require the submission of this statement.
Pan-European Personal Pension Product (PEPP) distributors
The notification of the start and end of PEPP distribution is being simplified, and the statement containing, for example, the number of contracts concluded or the volume of investments, is being abolished. European regulation does not require the collection of these data.
General licensing requirements (for example, activities on the capital market, insurance and reinsurance distribution, supplementary pension savings, consumer credit, the non-performing loan market and collective investment)
An affidavit of legal capacity now only needs to be submitted if the person being assessed is not listed in the basic registers and no other usable documentation is available.
Jakub Holas
Director, CNB Communications Division