The National Commission for Financial Markets reported that Moldova’s Parliament adopted in second reading a new law on financial instrument markets and investment activities, replacing the framework under Law No. 171/2012 and advancing the country’s broader alignment of capital market rules with the European Union acquis. The law introduces a single authorization regime for investment firms in place of three license categories, allowing firms to select services according to their business profile and available initial capital. It also permits individuals and legal entities to qualify as investment advisers under proportionate commission rules, removing the requirement to operate as a joint-stock company. Investor safeguards include tighter requirements for product governance, target-market identification, client disclosures, suitability and appropriateness assessments, best execution, cost transparency and conflict management. The framework conditionally restricts the marketing, sale or distribution of contracts for difference to retail clients and limits investment advice to non-complex instruments such as shares, bonds and fund units. It also establishes pre- and post-trade transparency, detailed transaction reporting and market-data requirements, while expanding the commission’s supervisory, intervention and enforcement powers. The law sets out cross-border regimes for Moldovan, EU and third-country investment firms and creates the basis for passporting after Moldova joins the EU. Implementation will require new supervisory information systems, and existing market participants will receive an adjustment period before the provisions take effect six months after publication in the Official Gazette.

Original source