Czech Republic: delayed implementation of MiFID

Czech RepublicUnited Kingdom

It is now clear that the Czech Republic will not meet the deadlines for implementing MiFID, the EU directive on markets in financial instruments.

MiFID creates a new regulatory regime for investment services in the single market and is required to be adopted into national law by 31 January 2007 and brought into effect by 1 November 2007. A more realistic timetable now seems to be for laws to be both adopted and brought into effect in Spring 2008 in the Czech Republic.

Draft amendments making substantial changes to the Czech republic’s regulatory framework for the capital markets are currently being considered by the Czech government, are expected to be finalised within one to two months, and will then be submitted to Parliament.

An unofficial version of the latest draft legislation (more up to date than the version on the Ministry of Finance website) is available from our office but may undergo further changes before it is passed into law.

Law: EU Directive 2004/39 on markets in financial instruments; Act no. 256/2004 Coll., on the conduct of business on the capital market, and its draft amendment