All posts by Alexandru Savva

Will raider attacks continue in Moldova?

After the notorious raider attacks on Moldovan banks in the summer of 2011, the government authorities decided to set up new legal mechanisms to protect investors from abusive takeovers. For this purpose, several packages of legal amendments have been approved over the past years.

Yet, new abusive takeovers have taken place following each set of amendments and the earlier initiated raider attacks have been carried out successfully. The obvious question is why Continue reading Will raider attacks continue in Moldova?

Capital Market Laws in Moldova: a Brief Review

What is the relevant legislative framework regulating the capital market?

The capital market legislative framework of Moldova is in a dynamic process of reform. The new Law on Capital Market, to enter into force in September 2013, will replace the Securities Market Law of 1998 – a law from the times of mass privatization and inspired from the legislation of other CIS countries.

The new Law seeks to follow the acquis communautaire and thereby transposes 11 EU Directives related to capital markets Continue reading Capital Market Laws in Moldova: a Brief Review

Moldovan New Capital Market Law entered into force

The day is finally here: 14 September 2013 − the day that Moldova’s new capital market law comes into effect. The legal act switches the gear from a law inspired from the legislation of other CIS countries to a law harmonized with the EU legislation and aligned to the international practice. Specifically, eleven relevant EU Directives are transposed − including MiFID, the Directive on Takeover Bids, the Investor Compensation Scheme Directive, the Market Abuse Directive, the Capital Adequacy Directive and the UCITS Directive − with secondary regulation to further develop the provisions of the Law.

Please see the table below for a quick comparative view of the two laws. In a nutshell, the new law significantly liberalizes the activity of the investors and of the companies. Continue reading Moldovan New Capital Market Law entered into force

The Amnesty of Investment Funds

It has been over a year since the amendment of the Law on Investment Funds, which required investment funds operating in Moldova to reorganise or liquidate. It is early to discuss the effects of the Law; certain preliminary conclusions yet can and need to be made.

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The Concept for Mending the Stock Market, adopted by the Government at the end of 2003, initiated the actions towards the amendment of the Law on Investment Funds and some experts were taken by surprise by that Concept.

First of all, they argued the subject of the document was more related to the competence of another public authority – the National Securities Commission. Second of all, the document’s format was unusual: a concept on recuperating the securities market laid in only one page! Continue reading The Amnesty of Investment Funds

Courts shall be entitled to dismiss the decisions of NCFM

The Constitutional Court has declared unconstitutional the provisions that used to prevent the dismissal of the National Commission of Financial Market (NCFM) decisions until the final resolution of a case. With the entry into force of this Constitutional Court decision, any NCFM decision can be dismissed in administrative court at the request of a person concerned.

The National Agency for Energy Regulation (ANRE) has been the first to suffer from the Constitutional Court decision. For a while, for the purpose of avoiding the administrative dismissal of ANRE decisions, the regulatory authorities of the energy sector lobbied for amending the article in question – Article 21 (3) of the Administrative Litigation Law. Continue reading Courts shall be entitled to dismiss the decisions of NCFM

The Capital Market Belongs to the Companies and the Investors

In an interview with the local publication ECOnomist, the Turcan Cazac lawyer Alexander Savva shed light on the benefits and the key aspects of the new Law on Capital Market, passed on July 11.

As discussed in the interview, the Law significantly reduces the restrictions that currently make the local capital market unattractive to businesses and investors. For instance, the Law removes the requirements to register private security issuances, to register securities on an exchange and to register all companies as public entities, as well as to conduct transactions only via specific market operators and via secondary public offers. Continue reading The Capital Market Belongs to the Companies and the Investors