Law 17/2019 amending Law 8/2013 on the organisational requirements and operating conditions of operating entities of the financial system, investor protection, market abuse and financial guarantee agreements

The financial sector is one of the main pillars of the Andorran economy and is deeply interconnected with the international financial sector through its presence in other markets outside the Principality and also outside the European Union. It is therefore important that the Andorran legal framework complies with the highest international standards in financial regulation.

In this respect, and as provided for in the annex to the Monetary Agreement, Andorra has undertaken to implement in its legal system, among others, Directive 2004/39/EC of the European Parliament and of the Council of April 21, 2004, on markets in financial instruments as well as Directive 2006/73/EC implementing Directive 2004/39/EC as regards organizational requirements and operating conditions for investment firms and Commission Regulation 2006/1287 on implementing measures for Directive 2004/39/EC as regards record-keeping obligations for investment firms, transaction reporting, market transparency and admission of financial instruments to trading. All these regulations are part of the regulatory package known as *MiFID I.

The former Law 8/2013 had already transposed a large part of the above-mentioned directives, so that they were already partially incorporated into the Andorran legal system. However, an amendment of Law 8/2013 is necessary to comply with all of these directives and their implementing rules.

On February 15, 2019, the Law amending Law 8/2013 of May 9, on the organizational requirements and operating conditions of the operating entities of the financial system, investor protection, market abuse and financial collateral arrangements was approved.

The amendments carried out represent an advance with respect to the previous regime and constitute an improvement in the protection of markets and investment services clients. Improvements are also introduced in client classification, client information duties, incentives, suitability and appropriateness assessment, management and execution of orders, conflicts of interest, protection of client assets, registers and markets.