Pēters Putniņš: balance between regulatory framework and innovation environment to be ensured in future supervision of financial sector

21.12.2017
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Riga, 21.12.2017

Press Release Pēters Putniņš: balance between regulatory framework and innovation environment to be ensured in future supervision of financial sector  

The Financial and Capital Market Commission (FCMC) has set following priority axes for the next year – building an efficiently managed development-oriented organisation and balancing the regulatory and development components in the supervisory approach thus promoting innovative financial services.

FCMC Chairman Pēters Putniņš looks back on the performance in 2017 and outlines further actions:“A strong emphasis in the sector was previously placed on maintaining the highest compliance level for our financial institutions in line with international best practices. Now we have entered a new phase, since progress has indeed been made; in particular, the performance of commercial banks is appreciable both in setting up new control systems and improving quality requirements for transactions and customer base. This gives rise to a reasonable expectation that the work will be continued successfully. In the future, our greatest challenge in a supervisory capacity will be to ensure a balance between the development, new ideas and regulatory framework, in order to promote generating innovative, efficient and, of course, secure and suitable financial services. I believe that the backbone of innovations in Latvia will be the strongest players of financial sector – commercial banks.”

FCMC Board has approved the FCMC budget for the next year, taking into account above priorities and the increasing FCMC obligations within the Single Supervisory Mechanism and Single Resolution Mechanism framework, as well as the necessity of strengthening the FCMC functions related to raising the compliance levels of the financial sector operators in line with regulatory requirements and the necessity of investments for raising the quality and efficiency of FCMC performance. In the next year’s budget, revenues are planned in the amount of 12.17 million euro financed by the market participants, as well as expenditures in the amount of 11.99 million euro. Expected increase in the FCMC expenditure is 10% compared to 2017.

FCMC financing for 2018:

FCMC Board has approved the budget for 2018, determining also payments of supervised market participants for maintaining the activities of FCMC. Activities of the FCMC have been financed only from the payments of market participants in accordance with the provisions laid down in laws and regulations. Of total FCMC budget for 2018, 78% of the budget will be covered by all monetary financial institutions, but basically 75% will be covered by commercial banks, 14% by the insurance market participants and 8% by the financial instruments market participants and private pension fund managers. 

Following the approval of the FCMC budget for 2018, also the Regulations on determining the amount of payments by the financial and capital market participants for financing the Financial and Capital Market Commission for the year 2018 and on the procedure for submission of reports were approved during the meeting of the FCMC Board, determining fixed quarterly payment per each segment supervised by the FCMC for financing the FCMC activities. 

For further information:

Agnese Līcīte

Senior Public Relations Specialist 

Communications Division 

Financial and Capital Market Commission 

Phone:  +371 67774808; +371 29467009

agnese.licite@fktk.lv

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