Securities Market Association established to promote more efficient co-operation on the securities market

Securities Market Association established to promote more efficient co-operation on the securities market The Confederation of Finnish Industries EK, Helsinki Stock Exchange Ltd and the Central Chamber of Commerce have today established a Securities Market Association. Mr. Matti Vuoria, President and CEO of the Varma Mutual Pension Insurance Company, was elected chairman of the association's Board of Directors, with Mr. Jukka Ruuska, Chairman of the Board of Directors of Helsinki Stock Exchange, and Mr. Timo Peltola elected as members. Parties operating on the securities market may join the association as members as soon as the establishment phase has been completed. The past few years have seen a marked increase in the regulation of the securities market and of public companies in particular. It is important that enterprises operating in this sector observe uniform operating principles and rules. The founding members of the new association share a common view concerning development of cooperation and promotion of joint rules, or self-regulation. There is a pressing need to develop self-regulation in the field. If such regulation is to be relevant, it must also satisfy stringent quality criteria. The association will participate in the compilation of self-regulation standards and interpret them, when necessary. The association will administer the Corporate Governance Recommendations for Listed Companies that were introduced in July 2004 and are incorporated in the rules of the Helsinki Stock Exchange. Corporate Governance refers to rules and procedures related to good governance of listed companies. It concerns the relations between a company's management and its stakeholders, and the division of tasks and responsibilities. The purpose is to standardize the operating principles of listed companies, increase transparency of operations, boost information distribution and standardize the information provided for investors and shareholders. Listed companies are obliged to comply with the recommendation in full or, failing that, explain their reasons for non-compliance (the Comply or Explain principle). The association will also administer a recommendation concerning public bids. However, the association will not assume the responsibilities of the Business Acquisition Committee of the Central Chamber of Commerce of Finland, nor address issues that fall under the scope of the Finnish Securities Complaints Board or matters related to self-regulation within the Helsinki Stock Exchange. The Nordic Exchange adopted a joint stock exchange list in October 2006. This also sparked discussion on the need to standardize the CG rules in all Nordic countries. The association will participate in any eventual standardization efforts. A preparatory working group has been established for this purpose under the chairmanship of Legal Affairs General Counsel Anne Leppälä-Nilsson from Kesko. The members of the group are Senior Vice President for Legal Affairs Jyrki Kurkinen from Stora Enso, Group Chief Counsel, Group Executive Vice President Ilona Ervasti-Vaintola from Sampo, Senior Deputy Director Leena Linnainmaa from the Central Chamber of Commerce, Managing Director Timo Löyttyniemi from the State Pension Fund and General Counsel Jaakko Raulo from OMX. For further information, please contact: Jaakko Raulo, OMX +358 50 2479 PDF

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