New transition and access methods to capital market

The implementation of the Law on the capital market, which was recently adopted by the Parliament, will insure a new way of access and transition to the capital market, will contribute to the diversification of financial instruments, and will create an efficient protection mechanism for investors. The statement was made in a press conference by Aurica Doina, member of the Administration Council of the National Financial Market Commission. The Law adapts 11 European directives on the matter, reports Info-Prim Neo. Among the strong points of this Law, Aurica Doina pointed out the extension of the spectrum of services and activities which an investment society may have. Presently, for example, companies licensed to act as dealers cannot offer loans to clients for the purchase of securities. The new Law offers this possibility. On the other hand, the licenses issued to such companies will be indefinite, as opposed to the current 5-year licenses. Other provisions deal with strengthening the financial capacity of the professional participants to the mobile assets market, so that they can develop new programs and products. The Law creates incentives for institutional investors, who can have either legal entity or individual status, and can attract the liquidity surplus from the population. An important aspect is that the Law simplifies the procedures for transactions and public offers from investment societies, commercial banks, insurance companies, and retirement funds. The Law will become effective in 12 months. Professional members of the mobile asset market had their licenses extended to 18 months. During this period they must comply with the licensing guidelines, including the volume of their own capital.