The Central Bank of Cyprus and the Czech Securities Commission signed on 28 February 2002, a Memorandum of Understanding on mutual co-operation and exchange of information in the field of regulating the provision of international financial services.

The Czech Securities Commission is the competent regulatory authority for the capital market in the Czech Republic, performing state supervision and promoting, through its activities, the development and protection of the capital market within the scope of its powers under the relevant Czech legislation. The Central Bank of Cyprus, in addition to being the country's monetary and banking supervisory authority, it also regulates, under the Exchange Control Law, the activities of all international financial services firms which are based in Cyprus. The Central Bank of Cyprus is also the licensing and regulatory authority of International Collective Investment Schemes, their Managers and their Trustees under the International Collective Investment Schemes Law.

The Memorandum, signed on behalf of the Central Bank of Cyprus by its Governor Mr Afxentis Afxentiou and on behalf of the Czech Securities Commission by its Chairman Mr. Frantisek Jakub, will establish a general framework of mutual co-operation and exchange of information between the two Authorities with a view of facilitating the performance of their cross-border regulatory functions and responsibilities and enhancing the supervision of international financial services, in accordance with their respective laws and regulations.

The signing of the Memorandum of Understanding between the Czech Securities Commission and the Central Bank of Cyprus had been necessitated by the presence in Cyprus of international financial services firms owned by Czech interests as well as by the expansion of the activities of a number of Cyprus based international financial services firms into the Czech Republic.

Source: PIO