At its session on 28 November, the Government passed an amendment to the Act on Supervision over Banks and Financial Institutions (zákon o dohledu nad bankami). The amendment transposes the EU-directive that has come into force in December 2011. The aim of the amendment is to provide an additional supervision over the so-called financial conglomerates that face the biggest financial risk (concentration of infected finance and spread of the infection within a financial product of each respective bank). At the Union level, the directive emphasizes a sufficient cooperation of national supervision institution with the European auditing institutions. The amendment stipulates the process of the risk assessment and management. Managers of financial funds and insurance companies should provide an overview of their institutions’ financial structure. The amendment reflects recent changes in the Act on Insurance regulating the list of person capable to settle the insurance contract. The amendment also broadens the list of institutions that should be treated according to the Act so that the supervision stipulated by the amendment should be compulsory for broader array of institution.

For further information regarding the Bill, click here (explanatory report).