Amended Market on Financial Instruments Act

UniCredit Bank Slovenija d.d.
Summary: 
The amended Market on Financial Instruments Act will implement EU Market Abuse - Regulation (EU) No. 596/2014.
Thu, 02/03/2017

The amendments to the Market on Financial Instruments Act were published in the Official Gazette nr.9 on 24 February 2017 and will be valid from 11March 2017. The main changes are:

  • Securities Market Agency is authorised to take over the management of brokerage house in the case of trouble in line with the Banking Act.
  • Defines investigation and supervisory measures of Securities Market Agency.
  • Defines execution of measures from article nr.23 of the Abuse Market Regulation related to the temporary freeze or sequestration of assets and to the temporary prohibition on the exercise of professional activity.
  • Securities Market Agency is obliged to establish effective mechanisms to enable the reporting of actual or potential infringements of the Abuse Market Regulation up to 11September 2017.
  • Financial institutions are obliged to implement a system to enable their employees to report infringements of the Abuse Market Regulation before 11 September 2017.
  • Defines violation of the Market Abuse Regulation and increases fines. The maximal fine for the most severe violations is increased to EUR 15 Million or 15% of yearly turnover.
  • Limits possibilities of lawyers, notaries and law companies to open fiduciary (omnibus) securities accounts at the Slovenian CSD.

The amendments also eliminate irregularities in respect of certain references to other financial legislation.

Impact on investors: Adjustment of Slovenian legislation according to EU Market Abuse - Regulation (EU) No 596/2014.