First Reading of the Draft Act on Amendments to the Securities Market Act (690 SE)
Session: The 15th Riigikogu, 6th Session, Plenary Sitting
Date: 2025-10-06 18:13
Participating Politicians:
Total Speeches: 8
Membership: 15
Agenda Duration: 13m
AI Summaries: 8/8 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated the first reading of Bill No. 690, initiated by the Government of the Republic, concerning amendments to the Securities Market Act. Finance Minister Jürgen Ligi introduced the bill, emphasizing that the changes stem from European Union law and are intended to reduce fragmentation in the European capital market and promote non-banking financing. The bill focuses on four main amendments: raising the threshold for the obligation to draw up a prospectus from 8 million to 12 million euros; easing language requirements (allowing the prospectus to be prepared in English, provided an Estonian summary is included); reducing the administrative burden for investment service providers; and enabling the Financial Supervision Authority to impose more flexible sanctions (turnover-based fines) in cases of market abuse. The amendments are scheduled to enter into force on June 5, 2026.
Aivar Sõerd, a member of the Finance Committee, confirmed that the committee unanimously supported the bill, viewing it as a significant step toward diversifying the Estonian financial market, which is currently overly banking-centric. The committee also discussed finding a balance between investor protection and reducing the administrative burden. Following a brief debate, during which the justification for easing the language requirements was questioned, it was decided to conclude the first reading.
Decisions Made 2
The leading committee's proposal to conclude the first reading of Bill 690 was adopted.
The deadline for submitting amendments was set for October 20th of this year, at 5:15 PM.
Most Active Speaker
Aivar Sõerd, a member of the Finance Committee, presented a comprehensive report from the lead committee, explaining the objectives of the draft legislation and the substance of the discussion held within the committee, and answered a question regarding the relaxation of language requirements. His role during the discussion phase was central (other).
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar introduced the ten-point agenda, the first item of which was the first reading of Draft Act 690 on amendments to the Securities Market Act, initiated by the Government of the Republic, and asked Minister of Finance Jürgen Ligi to take the floor to deliver the report.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi presented, on behalf of the Government of the Republic, the draft amendments to the Securities Market Act, the objective of which is, in accordance with European Union guidelines, to facilitate non-banking financing and the development of the Estonian capital market. Among the most significant changes, the threshold for drawing up a prospectus will be raised to 12 million euros, simplifying the execution of smaller emissions. Furthermore, issuers will be granted greater flexibility in choosing the language of the prospectus, and the reporting burden on providers of stock exchange and investment services will be reduced. Simultaneously, the flexibility of the Financial Supervision Authority's fining powers will be increased in cases of market abuse.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister and, noting that he had no questions for him, invited Aivar Sõerd, a member of the Finance Committee, to the Riigikogu rostrum to present the discussion that had taken place in the committee.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd gave the Riigikogu an overview of the Finance Committee's consensus decisions to place on the agenda and conclude the first reading of the bill, the primary goal of which is to diversify Estonia's banking-centric financial market by raising the threshold for prospectus-exempt issuance to 12 million euros, easing language requirements, and reducing administrative burden, while emphasizing the need to find a reasonable balance between market revitalization and investor protection. The deadline for submitting amendments is October 20.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and opened the floor for questions, inviting Ando Kiviberg to pose the first one.
Ando Kiviberg
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ando Kiviberg considers the draft bill necessary, but he is concerned and demands clarification regarding the relaxation of the language requirements. He finds it incomprehensible how material in Estonian could hinder capital raising on Estonian financial markets, and he criticizes the fact that the committee was unable to provide a satisfactory answer to this question.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd considers the new regulation a very reasonable solution. This regulation grants issuers the right to choose the language of the offering documents, although an Estonian-language summary remains mandatory. He noted that the change received unanimous support in the commission.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that, following the thanking of the rapporteur and the conclusion of the question period and debates, the first reading of draft bill 690 has been concluded, and the deadline for submitting amendments was set as 5:15 PM on October 20th of the current year.