Finnish legislative reform introduces rules on intermediated securities and indirect custody issues

On 7 February, Krogerus Senior Associate Tom Fagernäs spoke at the Nordic Back Office conference on securities custody issues.

Over 150 professionals representing leading financial institutions and investment services providers in the Nordics were present at the event, which was held on 6–7 February at the Pörssitalo building in Helsinki.

“Finland has new securities legislation that finally introduces rules on intermediated securities and the indirect custody of securities within our borders,” explains Tom.

“But decisions have not been made on the much-debated question of whether Finnish investors will be given the opportunity to nominee-register their shares.”

The implications on current market participants are not particularly far-reaching at this stage, says Tom. “However, further thought should be given to this when the TARGET2-Securities project and the European Regulation on Central Securities Depositories take effect.”

The objective of these efforts is to harmonise the securities settlement infrastructure in Europe.

“The European Union is now hopefully at the early stages of removing the obstacles to the emergence of a truly single post-trading market.”

Tom represents clients in domestic and cross-border corporate transactions and securities law assignments. He also has broad experience in finance and capital markets, including regulatory matters.