New Securities Market Law

The new Securities Market Law

Implications and Important Keys

Law 6/2023, of March 17, on Securities Markets and Investment Services came into force on April 7, with the purpose of reforming and improving the regulation of capital markets in Spain. This standard, approved with a broad consensus, unifies and adapts the legal framework to new technological and economic realities, which includes the creation of a single market that facilitates the free flow of capital.

What Does the New Securities Market Law Involve?

  1. Legal Unification: The new law unifies the legal framework in a single text, repealing the consolidated text of the Securities Market Law of 2015. This simplifies regulation and makes it more efficient.
  2. Single Market: The rule seeks the creation of a single market to promote the free flow of capital, eliminating the barriers that hindered investment between countries.
  3. Adaptation to Digital Finance: The reform conforms to the European Union's digital finance package, considering the use of cryptoassets and Distributed Ledger Technologies (DLT).

Main Keys of the New Law

The new Securities Market Law includes significant modifications:

  • Simplified OPA: Simplifies the scope of Public Acquisition Offers (OPA).
  • Digital Finance: Adapted to future implementation of the European Union's digital finance package.
  • Facilitates Fixed Income Issuances: Speeds up fixed income issuances and reduces rates.
  • SPAC Regulation: Regulates Special Purpose Acquisition Companies (SPAC) for the first time in Spain.
  • ESIS Modification: Modifies the regulation of Investment Services Companies (ESIS) to comply with the new European regulatory framework.
  • EAFN: Introduces the National Financial Advisory Firms (EAFN).
  • Improves Sanctions: Updates and improves the sanctioning regime.

Union of Capital Markets in Europe

This "capital markets union" project seeks to stimulate growth and job creation in the 27 member states of the European Union. It will facilitate SMEs' access to new forms of financing and unlock operations previously hindered by regulatory and regulatory barriers.

EU Digital Finance Package

The European Union's digital finance package, launched in 2020, includes the regulation of cryptoassets, banking cybersecurity measures and modifications to financial regulations (MIFID).

In summary, the new Securities Market Law seeks to simplify regulation, stimulate economic growth and increase the competitiveness of the capital markets in Spain. This offers new financing opportunities and investment options for both companies and savers. At Belmonte Crespo Abogados, we are experts in banking and financial law and we are ready to provide you with the necessary advice in the securities market. Contact us for more information.