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Finland

Regulation on warrants to be introducedRoschier-Holmberg & Waselius, Helsinki

The Finnish Ministry of Finance is planning to amend its regulations regarding prospectus, listing particulars, duty of disclosure of the issuer and conditions for admission to listing, to allow public trading in warrants. The ministry states that, in order to develop the international competitiveness of the Finnish securities markets, the relevant provisions of these regulations should be amended to enable public trading in warrants. The Finnish Financial Supervision (the FSA) and the Helsinki Exchanges have also started the process of amending their relevant rules and regulations accordingly.

According to the ministry, the new warrant instruments will improve the opportunities for investors, investment firms and other market participants to act in the Finnish securities markets. The ministry also states that this will improve the liquidity of the markets as well as the price formation of listed securities. The process is at a stage where the ministry has, upon request, received comments on the proposed amendments from other relevant authorities and organizations.

Exemption from prospectus requirement in employee offerings

On August 30 2000, the FSA issued a statement regarding the requirements to prepare a prospectus in employee offerings. The statement revises the previous view of the FSA, according to which it has been possible to apply for an exemption to prepare a full scale prospectus and prepare a limited prospectus instead.

Deviating from its earlier views, the FSA now states that in the future it will, on application, grant a complete exemption from the prospectus requirement to all applicants. The exemption will be granted provided that there is no special reason to require a prospectus to be prepared in an individual case. The exemption order applies to the offering described in the application and will be effective for a maximum period of 12 months.

According to the statement, the FSA will grant the above exemption provided that, at the time of the issue, the issuer will provide the subscribers with sufficient information on factors which may have a material effect on the price formation of the offered security. The exemption order application must include a brief description of the issue and of the information which will be provided to the subscribers together with a description of the manner in which the information will be provided to the subscribers.

Dimitrios Himonas

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