1. Developments in the Organisational Structures of Banking and Financial Market Supervision: Aligning Organisational Solutions with the Countrys Needs National Bank of Slovakia Banking Supervision Division Dubrovnik, May 2004

2. Current Status Central Bank – National Bank of Slovakia (NBS), responsible for banking supervision Financial Market Authority (FMA), responsible for capital and insurance market supervision, pension funds (retirement system reform)

3. Future (as of January 1, 2006) Integrated Financial Market Supervision will be exercised by: Central Bank – National Bank of Slovakia

4. Integrated financial market supervision will include: Banking and e-money institutions supervision Capital and insurance market supervision Supervision over entities of the capitalisation pillar of the compulsory retirement system (pension funds) Financial market regulation - authorisation to issue secondary legislation

5. Open Questions 1. Decision Making Process A two-level decision making process remains - First level (Vice-governor) - Second Level (Bank Board) + Possibility to appeal to the Supreme Court

6. Open Questions 2. Integrated Supervision Authority Independence Overall responsibility for the coduct of supervision and issuing of first level decisions in proceedings will a. remain with one person - vice-governor appointed and dismissed by the President of the SR upon the recommendation of the Goverment and with approval of the National Council of the SR b. special board of directors will be established

7. Open Questions 3. Financing of integrated financial market supervision Multiple-source financing model is under consideration: a) Self-financed by the NBS (direct link to the NBS budget) b) From contributions collected from supervised entities

8. Financial market supervision will cover the following areas: Licensing activities Off-site and on-site supervision on an individual and a consolidated basis Conduct of proceedings and issuing of decision in such proceedings, enforcement of issued decisions, including conditions imposed in such decisions Preparation of relevant legislation

9. Draft legislative changes to establish integrated financial market supervision Legislation addressing the institutional arrangement of supervision (The National Bank of Slovakia Act) Process law (Act on Financial Market Supervision) Substantive law (Laws and other legislation covering areas such as banking, stock exchanges, securities and investment services...)

10. Organisational and technical requirements for the implementation of integrated financial market supervision Legal aspects of FMA and NBS merger Human resources and organisation IT resources