Securities market legislation to be reformed
The Ministry of Finance has appointed working group to draft proposals on a new Securities Markets Act, new legislation on the indirect holding of securities, amendments to legislation on the book-entry system and other related legislation.
The purpose of the wide reform is to ensure that legislation on securities markets is effective, clear and understandable, and that it promotes the competitiveness of the Finnish market. Furthermore, legislation must enable international structures and operating models that increase the efficiency of cross-border operations. The purpose is to avoid any deviations with an adverse effect on competitiveness from the regulation in EU countries that are essential for the operation of the markets. The Securities Markets Act and closely related legislation have been reformed in recent years through many partial reforms, but no overall review has been made since the enactment of the Securities Markets Act (1989).
The aim is also to safeguard the availability, security and feasibility of investment services in circumstances where such services are being offered increasingly by non-Finnish providers. The reform also seeks to ensure the effectiveness of securities market supervision and sanctions for illegal conduct.
The task of the working group is to draft the necessary legislative proposals into theformat of a Government bill. The working group will take into account international and EU development initiatives and projects on securities markets.
The term of the working group is from 3 February 2009 to 31 December 2010.However, the work should enable the proposals to amend securities clearing, settlement and custody legislation that are considered urgent to be submitted to the Parliament within the term of the working group, if necessary. The chair of the working group is Ms Tuija Vuorinen, Legislative Councellor at the Ministry of Finance.
The decision on appointment of the working group and other material on the reform is available (in Finnish) at the website of the Ministry of Finance at www.vm.fi (Hankkeet/Säädösvalmistelu/Rahoitusmarkkinoita koskevia säädöshankkeita).
For further information, please contact Ms Tuija Vuorinen, Legislative Councellor, tel. 358 9 160 33095.