FCMC sets strategic priorities for the next three years

03.03.2015
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Riga, 27.02.2015
Press Release

FCMC sets strategic priorities for the next three years

To enable the Financial and Capital Market Commission (FCMC) to perform its functions as effectively as possible in supporting the development and stability of the financial and capital markets, as well as protection of the interests of investors, depositors and the insured persons, on 27 February 2015 the FCMC Board approved Regulation and Supervision Strategy for the Financial and Capital Markets: 2015 – 2017, highlighting six strategic priorities for the next three years.

FCMC strategic priorities for the period from 2015 to 2017:

Improve the regulatory environment for Latvia’s financial sector in the context of the EU single market
Improvement of the financial sector regulatory framework provides for enhancing the regulatory environment appropriately to Latvia’s financial sector and commensurate with the goals of supervision in the context of the EU single market.

Create an effectively functioning mechanism for macro-prudential supervision in cooperation with the Bank of Latvia and the Ministry of Finance
Reinforcing the macro-prudential supervision is one of the key tasks in the process of strengthening the supervisory framework, to timely identify systemic risks and take risk prevention and mitigation measures by applying appropriate instruments.

Develop and make more efficient the financial and capital market supervisory methods, instruments and practices
With the accession to the Eurozone Latvia automatically joined the Single Supervisory Mechanism. In view of the new challenges, during the next three years it is planned to ensure that supervisory methods, instruments and practices comply with the ECB principles, continuing active and productive cooperation with the ECB and taking into account also specificities of Latvia’s financial sector.

Promote the introduction of sustainable and responsible market operator business models that are appropriate for Latvia’s conditions and safe for financial service consumers
Taking into account the changes in the global and national financial markets that have been affecting also the business decision-making process and activities of market participants, more attention is intended to devote to the changes and trends in market operator strategies, maintaining continuous and open dialogues with them to assess the risks as precise as possible and to timely take the necessary market development promotion measures.

Introduce an efficiently functioning resolution mechanism that is integrated into the EU system and appropriate for Latvia’s financial sector, including improvement of crisis prevention tools
To ensure performance of tasks of the FCMC as a national competent authority (function of resolution authority), introduction of efficiently functioning resolution mechanism, integrated in the EU system and appropriate for Latvia’s financial sector is prioritized, focusing on strengthening the supervision of market participants and enhancement of anti-crisis instruments, as well as protection of the public interests during the resolution process and maintaining sustainable public finances.

Inform the public proactively and raise the level of financial literacy
Considering that financial knowledge is a necessity of modern society, raising the financial literacy level has become one of priorities. It includes customer awareness-raising campaigns about financial services and their risks and activities of the financial sector to encourage well-reasoned decision-making in choosing financial services. FCMC provides for availability of thorough information about the work of regulators and developments in the financial sector, as well as provides the public with explanations of the current issues and latest news.

Further information:
Marija Makareviča
Head of Communications Division
Financial and Capital Market Commission
Telephone: +371 67774808; marija.makarevica@fktk.lv

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