||I analyze the development of subjects of collective investment in Czech Republic during years 1997 – 2004. New regulatory provisions given in the new regulation of capital markets came into effect in 2004. The objective of this paper is to answer the following question: Does the new legislation provide sufficient conditions for further development of collective investment in Czech Republic? The conclusion of the paper provides us a positive evaluation of harmonization of the Czech laws with the EU legislation, but criticizes the overall conditions in the economy. The new amendments don’t implement common products favored in the other European countries and there still remain imperfections inherited from the early beginning of the transformation into the market economy.