11th February 2013

EU-directive on financial supervision approved

The Chamber of Deputies approved the governmental proposal of the Act on Additional Supervision over Financial Sector (zákon o dodatečném dohledu nad finančním sektorem), transposing the EU-directive on 6 February. The Bill regulates the supervision over concrete financial conglomerates that are prone to spread financial infection. The concentration of precise conglomerates may lead to concentration of risk within each group of financial products. The Bill aims at eliminating of the risk stemming from the concentration of the infectious products. Doing so, the Bill stipulates the supervision by respective institutions and the flow of information between supervising institutions at the national and European level as well. The respective coordinator (according to the category of the financial conglomerate) should put forward any information regarding the possible infection to other supervisors. At the European level, the supervision is conducted by the Common Committee of European Supervision. The Bill enlists legal entities under the financial supervision.
The Bill is heading to the Committee on Budget.
For further information, click here (explanatory report).

Members of the American Chamber of Commerce in the Czech Republic