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Better transparency and protection of investors main objectives of new Capital Market Act

Author: Ivana Tomičić Šušak

ZAGREB, Dec 9 (Hina) - A draft capital market bill, presented in early November, which introduces the European Markets on Financial Instruments Directive (MiFID) into the Croatian legislation, is aimed at stepping up transparency and investor protection.

The law has so far been amended seven times, primarily to adjust it with the European Union acquis communautaire. To avoid confusions due to numerous amendments, the government decided to draw up a new bill, the Finance Ministry said.

The law is expected to enter into effect on 3 January 2018, with some of its articles entering force on 2 September 2019.

"The government-sponsored bill further regulates/adjusts Croatia's capital market with the EU acquis communautaire and European standards," the ministry said.

MiFID  is a directive of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments. It entered into force on  2 July 2014. It aims at making financial markets in the European Union more robust and transparent.

It also creates a new legal framework that better regulates trading activities on financial markets and enhances investor protection. The new rules, called ‘MiFID 2’, revise the legislation currently in place and will apply from January 2018.

(Hina) its

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