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: 14
Membership: 15
Agenda Duration: 13m
AI Summaries: 14/14 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item concerned the first reading of Draft Act 690, initiated by the Government of the Republic, amending the Securities Market Act. Minister of Finance Jürgen Ligi introduced the draft act, the main objective of which is to bring Estonian law into conformity with European Union regulations and to promote the development of the Estonian capital market by reducing its reliance on banking. The Minister highlighted four main amendments: firstly, raising the threshold for drawing up a prospectus for securities issues from 8 million euros to 12 million euros (while retaining the requirement for an information document for issues below 12 million euros); secondly, easing language requirements regarding the prospectus, giving the issuer freedom of choice (but retaining the requirement for an Estonian-language summary); thirdly, reducing the administrative burden on providers of investment services by eliminating certain reporting obligations; and fourthly, granting the Financial Supervision Authority the possibility of imposing more flexible monetary penalties, including as a percentage of the company's turnover.
Aivar Sõerd, representative of the Finance Committee, confirmed that the committee supported the draft act unanimously, emphasizing its importance in diversifying the Estonian financial market and enabling non-banking financing for companies. The committee discussed finding a balance between reducing the administrative burden and protecting investors, concluding that the 12 million euro threshold is reasonable in the European context. Aivar Sõerd also answered Ando Kiviberg's question regarding the justification for easing the language requirements, explaining that although the language of the prospectus becomes optional, the summary will remain in Estonian.
Decisions Made 5
The first reading of Bill 690 was concluded.
The Finance Committee proposed including the bill on the plenary session's agenda on October 6 (consensus decision).
The Finance Committee proposed concluding the first reading (a consensus decision).
The Finance Committee appointed Aivar Sõerd as the representative to the Steering Committee (a consensus decision).
The deadline for submitting amendments was set for October 20th at 5:15 PM.
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.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar opened the sitting, introducing the ten-point agenda, and then yielded the floor to Finance Minister Jürgen Ligi, who was scheduled to present the first reading of the government-initiated draft bill 690 on amendments to the Securities Market Act.
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.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi presented, on behalf of the Government of the Republic, amendments to the Securities Market Act, which stem from the European Union's objective to reduce market fragmentation and promote non-bank financing. The main provisions of the draft bill include simplifying smaller-volume emissions by raising the threshold for drawing up a prospectus to 12 million euros, reducing the reporting burden for investment service providers, and making the fining powers of the Financial Supervisory Authority (Finantsinspektsioon) more flexible, all of which should collectively impact issuers positively and advance the development of the Estonian capital market.
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 presented the Riigikogu with an overview of the Finance Committee’s consensus decisions to conclude the first reading of the draft bill. The bill’s primary objective is to diversify Estonia’s banking-centric financial market by raising the threshold for prospectus-exempt issuance to 12 million euros and alleviating the administrative burden. He emphasized that these amendments seek to strike a reasonable balance between market revitalization and investor protection, noting that the deadline for submitting proposals for amendments is October 20.
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.
Ando Kiviberg
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ando Kiviberg deems the draft bill necessary, but expresses profound confusion as to why the language requirements must necessarily be eased. He found it incomprehensible how Estonian-language material could impede capital raising on Estonian financial markets, noting that this specific question went unanswered by the committee.
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.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd considers the solution very sensible, which allows the issuer going forward to choose the language of the offering made in Estonia, while simultaneously requiring the summary to remain mandatory in Estonian, noting that the commission supported this.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, concluded the debates, and announced the completion of the first reading of draft bill 690, based on the lead committee's proposal. He set the deadline for submitting amendments as 17:15 on October 20th of the current year.
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.