Financial market laws and law amendments in the Czech Parliament

The House of Deputies of the Czech Parliament is currently reading a few law amendments regulating the financial market. We are bringing a brief overview.

The amendment of Act for recovery measures and resolution of crisis on the financial market

The act is a transposition of the directive of European Parliament and Council 2014/59/EU of 15th May 2014, the so-called BRRD (Bank Recovery and Resolution Directive) for credit institutions and investment firms. The objective of the amendment is to specify more accurately and complement some of the previously implemented provisions of the BRRD based on the previous domestic and foreign experience with the functioning of this framework. See also article Resolution of crises and Financial Market Guarantee System

The government proposal of the Act on the payment system

The objective of the law is the transposition of the directive of European Parliament and Council 2015/2366 of 25 November 2015 on payment services in the internal market which envisages an improved access of some groups of consumers to financial services and sets out common standards of the payment system and protection of payment service users.

The government proposal which amends the Law on Banks, Law on Credit Unions and the Law on Income Taxes

The law objectives include among others:

• sharing information as a prevention of cyber attacks
• enhancement of potential financial sources of Financial Market Guarantee Fund
• strengthening of supervision of credit unions as regards documentation of clients’ contracts
• harmonization of rules for the administrative procedure related to the establishment of a branch of a credit institution in other EU Member State
• setting information duties to the bank´s clients in the case of business transformation
• harmonization of rights of the owners of guaranteed deposits and other clients of a bank concerning their receivables.

The Amendments of the Act on Bonds

The overview of the amendment – see the article The amendment of the Czech Act on Bonds

The amendment of the Act on the activity of institutions for employee insurance

The law amendment is a transposition of the Directive of European Parliament and Council 2014/50/EU of 16 April 2014 on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights.

12-5-2017