The MiFID II regulatory framework is going to be transposed into Czech legislation. By Alena Kalasova, Relationship Manager, GSS Czech Republic
The Ministry of Finance submitted to the government a bill amending the Act on Capital Market Undertakings and certain other related regulatory acts.
The proposed regulatory framework should contribute to greater efficiency and transparency of doing business in the financial market. In response to the technical progress in this area, a new trading platform providing an organised trading system was established and high-frequency trading has been regulated. Information obligations have been adjusted and rules for dealing with customers imposed on regulated entities shall increase the protection of investors. Moreover, the regulation of investment intermediaries has been substantially reworked. The new provisions will also further harmonise and tighten the scope of administrative punishments.
The bill mostly contains changes leading to the implementation of the new Directives on the capital market, mainly Directive 2014/65/EU on Markets in Financial Instruments (MiFID II); Regulation 600/2014 on Markets in Financial Instruments (MiFIR); Regulation 596/2014 on Market Abuse (MAR); and Directive 2014/57/EU on Criminal Sanctions for Market Abuse (CSMAD).
The new rules should be applicable from 3 January 2017 (MiFID II and MiFIR), respectively from 3 July 2016 (MAR and CSMAD). The date for the government meeting to vote on the bill has not been scheduled yet.