24.04.2020 - The Parliamentary Committee on Economy and Finance approved today the draft law "On the Capital Market", drafted by the experts of SECO-World Bank, in cooperation with the Financial Supervisory Authority and the Ministry of Finance and Economy. The Minister Anila Denaj informed the commission about the focus of the draftlaw on the creation of funding opportunities, enabling the issuance of securities, make it possible to channel savings through better regulated investment markets as well as attract foreign investors. Under this bill, capital markets will be more effectively monitored; high standards of integrity and reliability will be established; a legal basis will be established in accordance with best international practice and in line with EU directives.
In the virtual meeting organized by the commission, interest groups were invited to offer their opinions, including the Association of Securities Trading in Albania (ASTA), the Albanian Stock Exchange ALSE, ALREG and brokerage companies.
ASTA and other actors in the sector have been quite active throughout the drafting process, influencing the improvement and adaptation of the law not only to EU Directives, but also taking into account the domestic market. Compared to the current legal basis, the new draft law brings a positive spirit to the domestic capital market, mainly in terms of:
- Gathering under the same umbrella of the entire legal framework for the capital market in the country,
- Better harmonization of the legal framework with the EU Directives covering the financial market,
- Better definition of the role and activity of some financial markets and intermediaries,
- Behavior for the first time some new concepts and institutions in the financial markets which were missing in the current law such as the central depositor of securities, credit risk assessment agencies, etc.),
- Standardization of fit & proper criteria for senior management bodies of financial institutions in the capital market.
Following this discussion, the draft law was approved in principle by a unanimous vote of all participating MPs. In the coming weeks, it is expected to be discussed and approved in the Plenary Session of the Albanian Parliament.