"The Estonian securities market legislation has reached the level set by the European Union. The new law together with the financial inspectorate starting new year enables us to substantially improve the credibility and transparency of the market," CEO of TSE, Gert Tiivas said.
"This Act is a product of a long-term co-operation between the state, supervisory agencies, market participants, and other leading experts, and, thus, the outcome is of high quality," said Tiivas.
The Act harmonises the Estonian standards with the relevant European Union regulations. For the first time the topics related to provision of investment services and securities' settlement are regulated by law. Also the rights and responsibilities of the regulated market is defined and the stock exchange's rights and obligations are regulated by the law.
The Act enforces prudential ratios to investment firms that are non-credit institutions, prohibits market manipulations, and regulates issues of securities. The Act enables smooth integration of the Estonian securities market to the European Economic Area by promoting the increase of international investments.
The Securities Market Act that will replace the existing act adopted in 1993 shall come into force on January 1, 2002. The law must also be proclaimed by the president.
