Capital Markets updates

Chile

Securities authority replaced by Financial Markets Commission
  • Chile
  • February 21 2017

Congress recently approved a bill to replace the Superintendence of Securities and Insurance, the securities and insurance watchdog, with the newly created Financial Markets Commission. The commission will have the same authority in the financial and insurance markets as its predecessor, as well as improved powers, particularly regarding investigations and the application of penalties.


Cyprus

ESMA guide provides clarity regarding obligations under Transparency Requirements Law
  • Cyprus
  • April 11 2017

The European Securities and Markets Authority recently published a practical guide which provides an overview of each EU member state's national rules for the major holdings notification regime provided under the EU Transparency Directive. The guide clarifies certain key obligations and deadlines which apply under the Cyprus legislation that implemented the EU Transparency Directive and the Transparency Requirements Law.

PDMRs and closed periods under Market Abuse Law
  • Cyprus
  • March 07 2017

The government recently enacted the Market Abuse Law (102(I)/2016), which implemented the EU Market Abuse Regulation (596/2016). A provision of the regulation which has generated much discussion relates to persons discharging managerial responsibilities and the obligations of persons closely associated with them regarding transactions conducted on their own account concerning the issuer's shares, debt instruments, derivatives or other linked financial instruments.

Common pitfalls in cross-border reporting requirements under EU Transparency Directive
  • Cyprus
  • November 01 2016

Cypriot companies are frequently used in cross-border structures, whereby their securities are listed on a regulated market of another member state. In this regard, Cypriot issuers and holders of securities in cross-border listing structures must consider the often overlooked notification requirements under the EU Transparency Directive.

Benefits of using Cyprus-based companies to invest in Iran
  • Cyprus
  • May 10 2016

The European Union recently scaled back sanctions regarding Iran, marking the country's return to international capital markets. Investment in Iran through Cyprus-based companies and institutions offers international investors unparalleled benefits over other models of foreign direct investment. These include the Cyprus-Iran bilateral investment treaty, the Cyprus-Iran double tax treaty and Cyprus alternative investment funds.


Indonesia

Contributed by Ali Budiardjo, Nugroho, Reksodiputro
OJK tightens control over bankruptcy disclosure by issuers and public companies
  • Indonesia
  • November 07 2017

A recent Financial Services Authority (OJK) regulation sets out new disclosure obligations that apply to issuers and public companies in Indonesia and creates a new penalty regime for non-compliance. The regulation is significant for investors with an interest in the Indonesian Stock Exchange and is consistent with other measures that the OJK has taken to improve transparency and align the reporting obligations of issuers and public companies with international standards.

OJK issues new regulation regarding public companies' shareholding reporting obligations
  • Indonesia
  • May 30 2017

The Financial Services Authority (OJK) recently amended public companies' obligation to report on their shareholding by way of OJK Regulation 11/POJK.04/2017 regarding Reporting on Public Company Ownership or on Every Change in Share Ownership. The regulation aims to bring public companies' reporting obligations in line with international standards.

OJK issues regulation on exemption from reporting and announcement obligations
  • Indonesia
  • March 22 2016

The Financial Services Authority (OJK) has issued a regulation setting out the criteria for exemption from the reporting and announcement obligations ordinarily imposed on issuers and public companies with securities and shares registered at the Indonesian Stock Exchange. The exemption must be confirmed by way of an OJK decision letter, but can be rescinded if the entity no longer meets the established exemption criteria.

New OJK regulation on rights issues
  • Indonesia
  • March 01 2016

A new regulation on rights issues was passed by the Financial Services Authority in December 2015. The regulation introduces key changes relating to rights issue approval, effective statements, non-cash capital injections, announcements and company and shareholder requirements, and is intended to provide investors with more flexibility and ease when conducting rights issues.

New risk management regulations for financial services conglomerates
  • Indonesia
  • January 13 2015

The newly established Financial Services Authority recently issued a set of regulations governing the financial services industry. The regulations are intended to promote sustainability, stability and competitiveness in light of the increasing complexity of transactions and interactions between financial institutions, as well as between companies within a financial conglomerate.


Japan

Contributed by Nagashima Ohno & Tsunematsu
Finalisation of fair disclosure rule under securities law
  • Japan
  • April 03 2018

In June 2017 the Financial Instruments and Exchange Act was amended to introduce the fair disclosure rule in Japan. Subsequently, in October 2017 the Financial Services Agency (FSA) published draft legislation (comprising an implementing order and an ordinance) and guidelines for public comment, followed by final legislation in December 2017. The FSA has now published new guidelines and opinions on the public comments that it received.

Fair disclosure rule under securities law
  • Japan
  • November 21 2017

In June 2017 the Financial Instruments and Exchange Act was amended to introduce the so-called 'fair disclosure' rule in Japan. The amendments address recent cases of selective disclosure of material information by issuers to sell-side analysts and investors' requests to introduce similar fair disclosure rules to those of other jurisdictions. The Financial Services Agency recently published a draft implementing order, ordinance and guidelines for public comment.


Luxembourg

New Act on Market Abuse following amendments to EU framework
  • Luxembourg
  • June 20 2017

Following the adoption of Bill of Law 7022, the new Act on Market Abuse recently entered into force. The act significantly increases the administrative and criminal penalties for infringements of market abuse provisions and designates the Luxembourg financial sector regulator as the competent authority for the purposes of the EU Market Abuse Regulation. It also extends the definition of 'regulated information' provided for in the Act on Transparency Requirements for Issuers.

Luxembourg Green Exchange promotes green financial instruments
  • Luxembourg
  • November 22 2016

The Luxembourg Stock Exchange (LuxSE) recently introduced a new specific platform for green financial instruments: the Luxembourg Green Exchange (LGX). Although joining the LGX is optional and green securities can be listed on the LuxSE and recognised as green regardless of whether the issuer chooses to join the LGX, having securities admitted to the LGX will increase investor confidence as to their green nature.

EU Market Abuse Regulation shakes up local legal framework
  • Luxembourg
  • July 26 2016

The EU Market Abuse Regulation recently came into force in Luxembourg and a new market abuse regime affecting listed companies has been implemented. In addition, a wider set of rules covering the disclosure of inside information, insider list manager transactions and modifications relating to multilateral trading facility (MTF) platforms – including the Luxembourg Euro MTF market – have been introduced.

Luxembourg Stock Exchange publishes FAQs on Euro MTF market rules and regulations
  • Luxembourg
  • June 21 2016

Updated Luxembourg Stock Exchange (LuxSE) rules and regulations came into force in January 2016 and the LuxSE recently published frequently asked questions (FAQs) regarding the Euro MTF Market rules. The FAQs include information on approvals and the requirements for the different types of security generally issued. They also provide support to practitioners in regards to prospectus approvals and the Euro MTF market listing process.