Securities Market Act Amended

On 9 February 2005 the Riigikogu adopted the Act Amending the Securities Market Act, Financial Supervisory Authority Act, Estonian Central Register of Securities Act, Money Laundering and Terrorist Financing Prevention Act and Credit Institutions Act.

The Securities Market Act saw the most change. The prior Securities Market Act has been effective in Estonia since 2001 and the regulation found therein had became partly obsolete. Therefore it was necessary to supplement the act and bring it into compliance with relevant EU directives. The amendments make Financial Supervisory Authorities supervisory activities more effective by requiring more information. Conflict of interest and market manipulation regulation is also tightened. Manipulation of the market now also includes distribution of misleading information. To prevent wrongful use of inside information the act sets forth an obligation for the issuer of a financial instrument to immediately disclose any inside information