Financial instruments' market of Moldova to be aligned with EU standards

The legal framework for the organization and work of financial instruments’ markets will be aligned with European Union standards. A draft law to this effect, developed by the Finance Ministry, today was approved by the parliament, in the first reading.

The draft was presented by State Secretary of the Finance Ministry Ion Gumene. The official emphasized that the document incorporates an important part of the related European rules on transactions’ transparency, protection of clients’ assets, short selling and reporting of financial operations.

“The initiative is not limited to amending certain articles of the current legislation, but introduces a new and comprehensive architecture for the functioning of the capital market in Moldova. Thus, the document establishes the legal framework applicable to financial instruments’ markets, as well as to investment services and activities carried out in Moldova. The regulations aim to ensure the integrity, orderly work and stability of financial instruments’ markets, as well as an increased level of protection for investors,” Ion Gumene noted.

The provisions of the draft will apply to market operators, trading venues, as well as investment firms and companies from other states, that provide services or carry out activities on the territory of Moldova.

“The document sets out the conditions for access to investment activities, the requirements for the authorization, organization, work and supervision of investment firms and credit institutions of Moldova. It also introduces transparency requirements for financing operations through financial instruments. The National Commission for Financial Markets will be responsible for monitoring this area. Thus, the institution will develop IT systems that will enable effective supervision of participants in the financial instruments’ market,” added Ion Gumene.

The draft law on financial instruments’ markets and investment activities is to be examined by the parliament in the second reading. After its adoption, the new provisions will enter into force six months after publication in the Official Journal, with the exception of certain provisions that will become applicable on the date of Moldova’s accession to the European Union.