Capital markets law in Slovakia in 2024

Capital markets law in Slovakia in 2024 After the “legislative whirlwind” at the end of the previous parliamentary term, we are starting this year with a new government and therefore with a new plan of legislative tasks. Financial regulation is largely harmonised and therefore most of the new legislation will be the result of the legislative process at European level. However, this does not apply to taxation. So what will 2024 bring for financial regulation in Slovakia? Peter Varga and I pick the following for you: 1) On 10 January, the ELTIF 2.0 regulation came into force (more here: https://rb.gy/242r20), which makes European long-term investment funds significantly more flexible. However, the final draft regulatory technical standards (Level 2 legislation) were only published by ESMA in the second half of December last year, so we are still awaiting the final word from the European Commission in relation to the key issue of the “lifetime” of these semi-closed-end funds. 2) There is currently a delay in the legislative process for the implementation of the MiFID II changes as a result of the DLT Regulation (more here: https://rb.gy/0riegc) being adopted. The amendment to the Securities Act is intended to ensure that financial instruments issued through DLT will also be considered financial instruments under Slovak law. 3) The amendment to the Securities Act (incidentally not approved by the Parliament in the previous parliamentary term) also brings back the attempt to restrict listed bonds. If the amendment as presented were approved, “private” issuers would only be able to issue certificated bonds if they were immobilised with a central depository when they were issued. 4) In the middle of this year, some parts of the MiCA Regulation, in particular those relating to asset-backed tokens and e-money tokens, come into force, and finally, at the end of the year, the MiCA Regulation as a whole comes into force. In this context, a Draft Act on certain obligations and powers in the field of crypto-assets is being prepared in the Slovak legislative process. It will be particularly relevant for current providers of cryptoassets-related services operating in Slovakia on the basis of trade licenses. 5) Small funds can be distributed to a wider range of qualified investors. As we have already discussed in detail at our conference (the recording is here: https://rb.gy/2qhmzg), this is difficult to implement in practice. 6) The Slovak capital market has been hit by the news of the abolition of the exemption for the redemption of units; the exemption for their sale on the secondary market (including off-exchange) has been retained subject to certain conditions. Finally, as part of a longer-term change, which will take some time but which we will hear more about in 2024, we certainly cannot fail to mention the more far-reaching change to the AIFMD, which aims, among other things, to harmonise the treatment of AIFs providing credit. Peter and I are continuing our small contribution to building capital market law this year 🙂