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Foreign investors do not support amendments proposed for Financial Instruments Market

Marta Jaksona/ficil.lv.
The Foreign Investors Council in Latvia does not support proposals for protection of rights of minority shareholders, which are include and proposed in amendments to the Law on the Financial Instruments Market.

The council believes proposals were quickly put together without giving them much thought, without appropriate risk assessment or dialogue with different interested sides.

«We have said this many times that a rushed legislation process creates significant risks for the quality of legislation. It is not possible to perform sufficient analysis and evaluation of risks in a short period of time. It is also not possible to discuss possible changes with other institutions and organizations. Such processes only result in the need to return to previously performed amendments again and again, which does not bode well for overall transparency and predictability of the legislative system. The motivation behind the proposal is also a reason for concern: if changes are truly needed, why is everything being rushed and why now? Why wasn’t it done sooner?» notes FICL Executive Director Marta Jaksona says.

In the letter addressed to Saeima factions before the third vote, the council also voiced several other objections about proposals developed to protect the rights of minority shareholders and which are aimed to expand the Law on the Financial Instruments Market with a new section.

«On top of that, officials have not performed sufficient assessment for the need of new regulations; risks have not been discussed with other interested sides; proposed legislation contains different problems; the equality principle is not present in relation to majority shareholders’ rights; existing mechanisms for the protection of rights and interests of minority shareholders are not taken into account,» the council adds.


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