Estonian Funds May Get Right to Invest on Alternative Market

The finance committee of the Estonian parliament has initiated a bill on amendments to the investment funds bill so it would permit funds to invest money also on the alternative market.

The alternative market is an analogue of the securities’ market where it is possible to substantially trade with securities in the same way, but at the same time the requirements to the issuers of these securities are lower than on the securities exchange, as one of its main aims is to make it possible for small companies to get access to additional capital.

Besides, according to the European Union’s investment funds directive, investment funds can invest their assets into securities traded on the alternative market in case such a market is recognized by the member country, regularly organized, and it is possible for the public to obtain or expropriate securities through its medium.

The Financial Supervisory Authority has also given its endorsement to the amendment.
In Estonia preconditions for the establishment of an alternative market at the Tallinn stock exchange have been created, but until the present no company has listed its shares on it.

Source: Ministry of Foreign Affairs