Financial Services, Latvia, Legislation

International Internet Magazine. Baltic States news & analytics Saturday, 30.05.2020, 21:45

Planned legislative amendments suggest of wish to get rid of FCMC council – ombudsman

BC, Riga, 13.06.2019.Print version
The planned legislative amendments to the law on the Financial and Capital Market Commission (FCMC) do not suggest of a democratic country where changes are being discussed, following the rule of law, but rather of the wish to get rid of the incumbent FCMC council, said Chief Ombudsman Juris Jansons in his letter to the Saeima and the president, informed LETA.

Jansons believes that the planned legislative amendments aim to introduce a system that increases political influence on FCMC in the future.

Jansons noted that the term in the office of the incumbent FCMC council members expires in 2022 and the current legislation provide for strict regulations how council members may be fired, but the new bill provides that council members are sacked by August 1, 2019, promising to pay them one-off compensation in the amount of 80 % of their annual salaries. Jansons claims that this is a breach of the autonomy principles and international bank supervision principles on independence of supervisory institutions.

The bill also shows that the lawmakers may in haste change regulations on independent institutions, and this might be done to any of the institutions, said Jansons.

The ombudsman believes that the bill is being moved through the parliament in haste and he calls on the parliament not to adopt it as it would damage FCMC efficiency and independence guarantees.

As reported, the Saeima is reviewing legislative amendments related with the principles of FCMC operations, which provide also for replacement of the FCMC board.

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