site.btaParliament Adopts New Markets in Financial Instruments Act

Sofia, February 1 (BTA) - Parliament on Thursday adopted a new Market in Financial Instruments Act. It transposes into Bulgarian legislation the requirements of a EU Markets in Financial Instruments Directive and measures for its enforcement.

The aim is to boost market transparency, ensure better protection for investors, boost confidence and prevent unregulated trade in financial instruments.

It extends the scope of financial instruments and builds on the existing legal regulations for the organization and activity of investment intermediaries and the regulated securities markets.

It introduces new requirements for the administration and representation of an investment intermediary, the professional qualifications and experience of the members of the management and supervisory bodies of an investment intermediary.

It allows investment intermediaries to contract agents to provide certain services on their behalf.

Requirements are put in place for the information that an investment intermediary is obliged to provide to customers and the implementation of assessment for relevance and expedience.

A new type of multilateral trading facility system will be established to encourage small and medium-sized businesses to raise capital on the capital market.