The Central Bank issued an information letter with further clarifications related to the requirement for identification of investor representatives for bond issues as of 1 July 2016
The amendments to the Law on the Securities Market came into force with effect from 1 July 2016 and they require the identification of representatives of bond issues. The responsibility of the representatives is to protect the interests of investors, including to make claims of behalf of the bonds’ owners in case of bankruptcy of the bonds’ issuers.
The Central Bank clarified that the obligation to identify a representative is not applicable to the cases when:
- the placement of the bonds (the signing of the first underwriting agreement) has taken place before 1 July 2016, or/and
- the decision on admission to trading has been taken before1 July 2016
Nevertheless, if an additional tranche is issued to the main one, the obligation will be valid and representative will service the full bond issue (i.e. all tranches).