Extended FCMC functions to protect sector participants and public interests
Amendments to the Law on the Financial and Capital Market Commission will take effect on 1 December 2012 granting extended powers to the Financial and Capital Market Commission (FCMC), namely, the rights to conduct investigation and on-site inspections after receiving the judge’s authorization and inviting the police officer.
FCMC functions are expanded for the purpose of obtaining evidence from the persons performing activities, with or without relevant authorization or licence, mentioned in the laws and rules that regulate the financial and capital markets, as well as to request any person to provide information in their possession regarding possible violation of law. All proceedings will be carried out under provisions of the Administrative Procedure Law, however, only in cases of emergency, but not on a day-to-day basis.
The amendments are aimed at broadening the FCMC functions in order to protect interests of all licensed financial sector participants as well as public interests, to provide for professional and fair market players, thus ensuring the market stability, reinforcement of confidence in the financial system and protection of financial service users.
The adopted amendments now grant the FCMC rights to exercise supervision and impose penalties also on unauthorized market players thus restricting illegal activities of persons and financial pyramids; it is a new provision that has not been envisaged in the current regulatory framework.
For additional information:
Head of Communications Division
Financial and Capital Market Commission
Phone: +371 67774860