Articles

Regulatory Amendments

May - August, 2013. Issue II

Some major regulatory changes introduced during the relevant period covered in this newsletter primarily relate to the following normative acts:

1. Appointment of Personal Data Protection Inspector in Georgia;

2. Amendments to the Order N°73/04 of the President of the National Bank of Georgia (dated September 7th, 2011) related to the rules of request and issuing  of an identification number of securities and registration statement of public offer and approved prospectus.

I. Appointment of Personal Data Protection Inspector

Law of Georgia on Personal Data Protection (hereinafter – the “Law”), dated December 28th, 2011 is regulating personal data protection in Georgia. Appointment of the first Personal Data Protection Inspector in June 2013 shall permit a real application of the law.

The Inspector is responsible for monitoring the legitimacy of data processing in Georgia.

According to the Law and Resolution N°180 of the Government of Georgia on the activities of personal data protection inspector and rule of execution of his powers, dated July 19th, 2013 (hereinafter – the “Resolution”), the Inspector has a real power to intervene, on its own initiative or  in response to the application of the person, to whom the data is pertaining. The functions of the Inspector include:

  • Providing consultations with public and private institutions on matters related to the data protection;
  • Considering the applications on the data protection;
  • Examination of the lawfulness of data processing in public and private institutions, and b  overseeing the registering filing system and new category of data;
  • Informing  public, through the annual report, on the state of data protection and the important developments thereof;
  • Participation in the law-making process and/or cooperation with other organizations and institutions;
  • Imposition of the sanctions for the breach of applicable data protection regulations (e.g. request destruction of the data or blocking of data processing).        

Articles 34, 35 and 39 of the Law, setting forth the rules for submitting the application by the interested person,   consideration of such application and responsive measures of the Inspector, shall enter into force on January 1st, 2016.

II. Amendments to the Order N°73/04 of the President of the National Bank of Georgia (dated September 8th, 2011) related to the rules of request and issuing  of an identification number of securities and registration statement of public offer and approved prospectus

According to the rules, governing the operation of the securities’ market, the National Bank of Georgia supervises and regulates issuance and circulation of securities.
Pursuant to the set of amendments dated May 1st and July 17th, 2013, two important changes have been introduced to the Order N°73/04 of the President of the National Bank of Georgia (hereinafter – the “Order”):

   1. Rules of Issuance of an ISIN.

  • The rules of assignment of an ISIN by the National Bank of Georgia: Securities are assigned of an ISIN on approval of the prospectus.

Securities on public offer shall be assigned when receiving issuer securities, which are allowed to trade on recognized stock exchanges of the foreign countries. If an ISIN has already been assigned to the securities of the same class, then the assigned ISIN shall be used for securities referred to in the prospectus or in the notification.

Formalities for registration (to the National Bank of Georgia):

Issuer has to present certain information in order to be assigned an ISIN (such as  the constituent documents of the issuer and  the extract from the Registry of Commercial and Non-commercial Legal Entities), no later than 1 month after approval of the final prospectus. The National Bank of Georgia is called upon to make a decision in 10 days from the date of receipt of the request.

   2. Prospectus registration number: ISIN – R – EE

(ISIN – International Securities Identification Number; R – Unit code depending on the registering authority; EE – number of the record for a specific issuer of securities).

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