DENTON Hall aims to extend its capital markets work in the Czech Republic by firming up the country's regulatory structure.
The firm says the Czech regulatory structure may be unable to properly protect the new class of capital markets funding about to come on stream from individual investors, whose funds will be handled by the new personal pensions companies now being set up.
Partner Robert Finney, of Denton Hall's capital markets group, says the new investment source is a first for the republic. To date capital market funds have been institutional only.
"The problems are that the legislation doesn't have any provisions for this. There are substantial loopholes in the law, " says Finney. "We will be aiming to put in place for the Czech ministry of finance a coherent legislation and supervision system to firm up the regulatory structure."
The firm has sent a proposal to the UK Government's Know How Fund. It expects the project to take six months and hopes to have a response from the fund in the next few weeks.
Denton Hall has been working in the Czech Republic for the last four years, alongside accountants Ernst & Young, and funded by EC programmes such as PHARE and the Know How Fund for Eastern Europe.
The firm advised the ministry of finance for two years on how to set up and run capital markets. It also helped set up one of two secondary markets - the RMS system - for trading in shares and bonds.
Finney says the new law and market systems have to be designed with the long-term view of eventual EU integration.