Press releases
24. 8. 2005

Government approves one-step integration of financial market supervisors

Ministry of Finance of the Czech Republic - Press Department - press release

At its meeting today, the Government approved the proposal of the Ministry of Finance and the Czech National Bank to accelerate the integration of financial market supervisors. Instead of gradual integration by 2010, the single regulator should be established on 1 April 2006. "This integration will allow us to significantly bolster the effectiveness of financial market supervision and at the same time reduce the related costs both for the supervised institutions and for the state," said Bohuslav Sobotka, First Deputy Prime Minister and Minister of Finance.

The integrated supervisory authority will - if approved by the Parliament - operate as part of the Czech National Bank. "The Government's decision is an important impetus for us to speed up the integration process. Our common goal should be to integrate the supervisors under one roof without causing any discontinuity in supervision," says Zdeněk Tůma, Governor of the Czech National Bank.

The financial market also welcomes the plan for faster integration of supervision. The benefits to regulated entities include harmonisation of the supervisory rules and requirements in the various market segments, and harmonisation of the legislation. Following the adoption of legislative amendments, this should significantly reduce their costs.

The proposed integration schedule is as follows:

  • adoption of legislation allowing integration - beginning of 2006
  • integration of supervisors - 1 April 2006
  • evaluation of experience, a comprehensive legislation audit, incorporation into legislation concerning the CNB and financial market supervision - 2008

"We will also work on a new regulation concerning consumer protection on the financial market. A financial ombudsman - who will 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 2008," adds Bohuslav Sobotka.

More information:

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