FINREG PARTNERS advised Trisbee in connection with the so-called re-licensing requirements under the amended payment transactions law following the implementation of PSD2.
“Excessive complexity in legislation hinders economic development, places undue burdens on individuals, businesses, and society as a whole, and impairs the exercise of good governance and state oversight. It undermines the rule of law,” said Jan Šovar, a partner at the law firm, highlighting the disadvantages of the current state of the legal system.
The area of financial market law is governed by the Act on Capital Market Undertakings, more than 100 European Union regulations, and ten Czech National Bank decrees. “These legal rules are further supplemented by hundreds of pages of general instructions, official communications, statements, or opinions issued by the CNB and the European Securities and Markets Authority. Such overly detailed interpretations make it seem almost impossible to comply with all the requirements,” Jan Šovar added.
According to Jan Šovar, the lack of effort to draft clear and unambiguous legal norms and the absence of pressure to reduce the opacity of the legal order also contribute to this unclear state of affairs. He suggested that improving the quality of legislation could be achieved by fostering shared responsibility within the legal community. “Judges, lawyers, and legal academics should be engaged in discussions about how to improve the quality of the legal system. Several European countries have established dedicated units tasked with proposing measures to enhance the quality of legislation,” Jan Šovar noted.
The article was published in the February 2019 issue of Právní rádce.
