Amendments to the Law on Securities Market in FBiH

The Parliament of the Federation of Bosnia and Herzegovina (FBiH) adopted Amendments to the Law on Securities Market in FBiH, which came into force on 7 November 2015. The amendments refer to the Misdemeanors Section and determine a new size of the fines for breaching the provisions of the law:

• Beneficial owners of securities - legal entities, issuers, professional intermediaries, custody banks, stock exchange, Central Registry of Securities (CSD) and other market participants can be subject to a penalty in the amount from BAM 15,000 to BAM 200,000.
  Previously, the penalty range varied between BAM 3,000 to BAM 15,000.

• Beneficial owners of securities - private individuals, authorized persons, members of supervisory board, brokers and other employees of professional intermediaries, employees of stock exchange, employees and board members of the CSD can be subject to a penalty in the amount from BAM 500 to BAM 10,000.
  Previously, the penalty range varied between BAM 200 to BAM 1,500.

Impact on investors: New remedies for breaching the securities market regulations comprise significantly increased penalties for all market participants.