Draft law amending the Securities Market Act and, as a consequence, amending other laws (regulation of derivatives and repo transactions) - first reading
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-05-20 13:07
Participating Politicians:
Total Speeches: 23
Membership: 15
Agenda Duration: 22m
AI Summaries: 23/23 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first item on the agenda concerns the draft law 633 for the first reading of amendments to the Securities Market Act initiated by the Government of the Republic, and related laws. Minister of Finance Jürgen Ligi delivered the presentation from the rostrum of the Riigikogu. The main objective was to improve the regulation of derivatives and repo transactions and to increase Estonia’s legal alignment with international standards, including matters of settlement and termination. This would mean better legal certainty for foreign investors and would increase the access of Estonian banks and other financial institutions to the international derivatives and repo transaction market, which in turn could enhance the competitiveness of our business environment. Several other amendments were also introduced, concerning the regulation of crisis measures, the criteria for the liquidation of small banks, the procedure for assessing collateral for housing loans, and the labeling and control conditions for green bonds. There was also discussion regarding the licensing procedures of the Financial Supervision Authority, to ensure the orderly process of voluntary termination. Initially, various members of the Riigikogu raised questions concerning the harmonization of valuations and the situation of small banks. Ultimately, the discussion moved forward and the committee will continue the thorough discussion and preparation for subsequent sessions.
Decisions Made 3
Propose including the draft on the agenda for the plenary session on May 20th.
The first reading to be completed within the framework of this session.
The presiding committee shall appoint a speaker and determine the order of proceedings and set a deadline for submitting amendments (June 3rd at 5:15 PM).
Most Active Speaker
The most active speaker was Aivar Sõerd (a member of the finance committee); his presentation brought a visual guide to the committee’s discussions and he primarily posed questions from the committee's perspective. In terms of position, he can be categorized as other (right-wing or centrist role). Based on votes and debates, both he and Urve Tiidus appear frequently as the officially most active speaker, but the officially defined single “most active” starting position categorization should be interpreted as collective and multifaceted.
Esimees Lauri Hussar
AI Summary
Today we will proceed to consider the first item on the agenda—the first reading of Bill No. 633, initiated by the Government, concerning the amendment of the Securities Market Act and consequential amendments to other acts—for which the rapporteur is Minister of Finance Jürgen Ligi.
Rahandusminister Jürgen Ligi
AI Summary
The draft bill, presented following the speech by Finance Minister Jürgen Ligi, aims to enhance the trustworthiness and competitiveness of the Estonian financial sector, improve the regulation of derivative and repo transactions, simplify crisis measures for small banks, introduce greater flexibility in the valuation of real estate used as collateral for housing loans, and adopt the concept of a green bond along with the associated labeling and control conditions. Furthermore, it seeks to clarify the requirements regarding the control exercised by the Financial Supervision Authority and the termination of licenses for investment firms, payment institutions, and e-money institutions.
Esimees Lauri Hussar
AI Summary
The speech thanks the minister, mentions that there are questions, and invites Aivar Sõerd to speak.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd raised a related matter concerning property valuation: the shift to a statistical method. While the aim of this method is to reduce the overall cost of loan transfers and transaction fees, the model may not be viable given the small size of the Estonian market and its dispersed population. He then asked whether the Ministry of Finance had fully thought through this proposed change.
Rahandusminister Jürgen Ligi
AI Summary
The draft focuses on the option, not the obligation, and since assessments are specific and the use of models is complicated in areas of sparse settlement, it is better suited for cities with more standardized settlement patterns.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks why the decision was made to let small banks fail should something happen, why the resolution plan does not include provisions for this, even though deposits are guaranteed in all Estonian banks, and he calls upon the commission to discuss the topic in depth.
Esimees Lauri Hussar
AI Summary
The Chairman calls upon Aivar Kokk to speak.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that small banks are suffering under their burdens and must hold larger crisis buffers than they would prefer. Systemic risk is low in their case, and the decision of whether or not to bail them out is a matter of discretion—for example, Bigbank's risky strategy does not make it clear that a major sponsor should be rescued by the state.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Urve Tiidus to the stage.
Urve Tiidus
Profiling Eesti Reformierakonna fraktsioonAI Summary
Urve Tiidus asks whether the market volume for Estonian derivatives and repo transactions is truly small, pointing out that a repo transaction is essentially a loan secured by shares or other securities, and requests forecasts regarding the growth of the market volume and the impact should the legislative amendment be passed.
Rahandusminister Jürgen Ligi
AI Summary
Growth is anticipated in the repo transaction market on our small exchange, which is primarily of interest to banks and energy companies. While this presents one opportunity, we must keep pace with international standards, and although future needs are not precisely known, we hope that this will become necessary.
Toomas Järveoja
Profiling Eesti Reformierakonna fraktsioonAI Summary
Toomas Järveoja is asking the minister what exactly is meant by a small bank and a large bank, and whether specific amounts or liquidity requirements have been stipulated for them.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls Toomas Järveoja to the stage.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that small banks would be screened out based on the assessments of the Bank of Estonia and the Financial Supervision Authority, and he named examples such as Bigbank, Coop Pank, Inbank, and Holm Bank, which may change depending on their size and significance.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Aivar Kokk to come to the stage.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk confirms that he does not hold an account or shares with this bank, and requests clarification on what constitutes a qualified person and which institution this term specifically applies to.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi explains the interpretation of the specific section and emphasizes the impact of unequal funding by sponsors on political parties, while simultaneously confirming that a "qualifying person" in the meaning of the law can be an individual, organization, or institution.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Peeter Ernits to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asks the director and the esteemed minister how many issuers of green bonds there are in Estonia, how many of them the Financial Supervision Authority will start controlling, an approximate number, and who they are.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that regulations for green bonds will be enacted through legislation, the terms of use for the label and controls by the Financial Supervision Authority will be established, and the objective is to raise consumer awareness and prevent greenwashing, ensuring that the activity is genuinely honest.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister, confirmed that there were no questions, and invited Aivar Sõerd, a member of the Finance Committee, to the speaker's podium to make his presentation.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Riigikogu Finance Committee discussed the preparation for the first reading of the draft bill, decided unanimously to place it on the plenary session agenda for May 20, conclude the first reading, and designate the presenter (rapporteur) as the lead committee. The Committee emphasized that the main objective of the draft bill is to improve the regulation of derivative and repo transactions, increase the access of financial institutions and large undertakings to international markets, and strengthen crisis resolution and supervision. Furthermore, the lack of valuation standards was addressed, and more detailed requirements will be established by the Minister of Finance’s regulations. Regarding green bonds, the relevant EU regulation applies, under which the issuer may use the green designation if the specified conditions are met.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the first reading of draft bill 633, opened the debate, announced that there were no questions and no requests to speak, and set the deadline for submitting amendments for June 3rd at 17:15.