FCMC warns of risks associated with the new type of financing

09.02.2015
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Riga, 09.02.2015.
Press release

FCMC warns of risks associated with the new type of financing

The Financial and Capital Market Commission (FCMC) draws the attention of customers to the financial services provided by AS “Mintos”. The company offers a new form of financing service in Latvia, therefore in order to evaluate compliance of the services with the applicable legal framework, including the customer rights protection, FCMC held a meeting with the representatives from the Consumer Rights Protection Centre (CRPC) and “Mintos” to discuss the company’s business model.

Having assessed the activities of “Mintos” and concluding that the company has a consumer credit licence issued by the CRPC, but does not have a licence to attract investments, the CRPC has requested to immediately suspend involvement of third persons, or natural or legal persons from Latvia or foreign countries in making investments. Besides, the CRPC requested to cease entering into cross-financing contracts with consumers, including assignment contracts with investors. For more information, please visit the CRPC website at: http://ptac.gov.lv/page/212&news_id=574

In accordance with Latvia’s regulations and laws the market participants that have received the FCMC licence are entitled to attract investments in Latvia, and they are: credit institutions, investment management companies, investment firms, alternative investment managers and credit unions. Since the activities of “Mintos” are not subject to supervision by FCMC the customers who receive services provided by the above company are not protected by any of the protection schemes available in the country, for example, the deposit guarantee scheme in case of deposits with credit institutions, or the investor protection scheme in case of investment services provided by the authorised service provider.

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

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