On 14 May 2016, Securities Intermediation Services amendment initiated by the FBiH Securities Commission came into force. The amendments allows banks, insurance and reinsurance companies as well as other legal entities to participate in off-exchange transactions. However investment funds, pension funds, fund management companies and professional intermediaries are not included in the new amendment and therefor are still prohibited from participation in off-exchange transactions.
Every sale or purchase of an Off-exchange security transaction must be mediated and conclude its purchase agreement through a professional intermediary (broker). In addition, the new amendment has only lifted the trading restriction for “block” transactions which transfer a minimum value of BAM 500,000 or 5% of the issuer’s capital and open-end companies which have a share capital below BAM 4 million and below 40 shareholders.
Impact on investors: The new amendment allowed banks, insurance and reinsurance companies or other legal entities to participate in off-exchange transactions in FBiH