Capital Markets updates

Chile

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

Registered alternative investment funds – an overview
  • Cyprus
  • 16 October 2018

Cyprus recently introduced a law which aims to modernise its investment fund legislative regime and allows for the establishment of a new type of investment vehicle: the registered alternative investment fund (RAIF). The RAIF is a hybrid legal creature that combines the elements of authorised and regulated funds without extensive bureaucracy or, more importantly, the need for an operating authorisation from the Cyprus Securities and Exchange Commission.

ESMA guide provides clarity regarding obligations under Transparency Requirements Law
  • Cyprus
  • 11 April 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
  • 07 March 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.


Indonesia

Contributed by Ali Budiardjo, Nugroho, Reksodiputro
OJK tightens control over bankruptcy disclosure by issuers and public companies
  • Indonesia
  • 07 November 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
  • 30 May 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
  • 22 March 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
  • 01 March 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
  • 13 January 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.


Israel

Contributed by Fischer Behar Chen Well Orion & Co
Supreme Court reaffirms application of foreign law to dual-listed companies
  • Israel
  • 06 November 2018

The Supreme Court recently confirmed that the liability for breaches of reporting obligations in the secondary market by dual-listed companies is governed by the securities laws of the foreign trading jurisdiction. The governing law with respect to the liability of a dual-listed company's external auditors is also the law of the foreign jurisdiction in which the company's shares are traded.

Demutualisation of Tel Aviv Stock Exchange: opportunities and challenges
  • Israel
  • 28 August 2018

The Israeli Securities Law was recently amended with the goal of making the Tel Aviv Stock Exchange (TASE) more competitive, efficient and profitable, by changing its ownership structure. This change of ownership structure will allow private investors, in addition to institutional investors, to acquire means of control over TASE. This can be viewed as a privatisation of sorts, as TASE is Israel's only stock exchange and is widely viewed as a national asset.

Israel bond financing of US commercial real estate – an overview
  • Israel
  • 17 July 2018

Israel has seen a growing trend in debt initial public offerings by US and Canadian real estate companies with income-producing real estate, as well as in the listing of the bonds for trading on the Tel Aviv Stock Exchange. In recent years, more than 30 such real estate companies have completed public debt offerings in Israel, the large majority of which were initial public offerings.


Italy

Bank of Italy consultation on MiFID II and MiFIR provisions
  • Italy
  • 09 October 2018

The Bank of Italy recently opened a public consultation on certain regulatory provisions to be enacted in order to bring forward the implementation of the EU Markets in Financial Instruments Directive and the EU Markets in Financial Instruments Regulation. The proposed provisions aim to supplement the Italian legal framework regarding the organisational duties of regulated intermediaries that provide investment services and activities, including banks.