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Roschier-Holmberg & Waselius Helsinki

The board of directors of the Helsinki Exchanges has on October 28 1999 issued regulations effective as of March 1 2000 on insider trading, which are recommended to be introduced by companies listed on the Helsinki Exchanges. The Regulations are intended to harmonize and improve the handling of matters involving insider information within such companies and thus to strengthen the confidence in the Finnish securities market.

The Regulations complement the general prohibition on insider trading contained in the Finnish Penal Code as well as other restrictions imposed under the Finnish Securities Market Act and the instructions issued by the Finnish Financial Supervision. The Regulations will, however, be binding only with respect to those companies listed on the Helsinki Exchanges, which have resolved to adopt the Regulations.

Apart from provisions governing registers to be maintained with respect to the shareholding of persons regularly being in possession of insider information, the Regulations introduce the concept of insider registers of employees and other persons participating in specific projects within a listed company, which projects may affect the price of the securities issued by the listed company in question. Pursuant to the Regulations, the trading in securities issued by a company participating in the project must be restricted in a manner preventing misuse of insider information by persons involved in the project.

Further, the Regulations set forth procedures that may be resorted to by a listed company for the purpose of imposing more stringent restrictions on persons regularly being in possession of insider information as regards the trading in securities issued by the company in question. Finally, the Regulations contain specific provisions on, among other things, the administration and supervision of insider information.

Dimitrios Himonas

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