Good securities market practice as such is acknowledged by legislation, but what constitutes as good securities market practice has not and cannot be regulated in much detail. Instead good securities market practice is a concept that is constantly evolving. The main duty of the Securities Market Association is therefore to define and promote, what is regarded as a good securities market practice at any given point of time.
The Securities Market Association has also the duty of maintaining and developing the self-regulation of listed companies in terms of securities market law and company law. The Securities Market Association has taken over the responsibility for the maintenance of the Finnish Corporate Governance Code and Helsinki Takeover Code. In addition to maintaining and developing self-regulation standards, the Association provides guidance on their practical application.
By promoting efficient self-regulation and good securities market practice, the Association aims to ensure that the companies on the securities market operate under uniform governance principles and rules. Efficient self-regulation offers a possibility for the market participants to participate in defining common standards for good securities market practice. Efficient self-regulation provides flexibility and limits the need for binding regulation.
The Securities Market Association acts as the self-regulation body referred to in Securities Market Act, section 11:28, and is responsible for maintaining the recommendations applicable to tender offers and takeovers (Helsinki Takeover Code). The Takeover Board, operating under the Securities Market Association, provides guidelines and statements regarding the interpretation of Helsinki Takeover Code and the compliance with good securities market practice and common company law principles in the context of takeover. The Takeover Board may issue statements and guidelines either by an application from a market participant or upon its own discretion.
The Securities Market Association maintains the Finnish Corporate Governance Code for listed companies. The Market Practice Board, operating under Securities Market Association, provides guidelines and statements regarding the interpretation of Finnish Corporate Governance Code. The Market Practice Board may issue statements and guidelines either by an application from a market participant or upon its own discretion.
The Securities Market Association also maintains this website, which contains information, such as model documents, that are useful to listed companies. Furthermore the Securities Market Association hosts regular events where corporate governance issues are being discussed among the market participants.
The Securities Market Association actively engages in national and international cooperation and publishes statements and initiatives to legislators.
A more detailed description of all the tasks and duties of the Securities Market Association can be found in the article of association of the company. The Association does not attend to the matters belonging to the Finnish Securities Complaint Board or the self-regulation matters belonging to Helsinki Stock Exchange