The proposal for the Finnish government bill on legislation governing bondholder trustees takes a step forward. The proposed legislation aims to increase legal certainty and promote the efficient functioning of the Finnish bond market by establishing a clear legal framework for the role of the bondholder trustee in Finnish debt issuances and, to an extent, the security agent in other collective financing arrangements. Earlier this year, the Ministry of Finance called for statements from 41 authorities and interest group representatives commenting the proposal.
Yesterday, the Ministry of Finance published a summary of the total 25 statements received, pursuant to which an overwhelming majority of the respondents – including the Bank of Finland, the Central Chamber of Commerce and the Finnish FSA – generally supported the proposal, with only one respondent being against the legislation on the grounds that it increases barriers to market and limits the freedom of contract. The published statements differed in the details, and it remains to be seen how they will shape the draft legislation.
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