VersobankNewsNews archive2017Disputes regarding Versobank AS right to provide services in the Republic of Latvia are solved

Disputes regarding Versobank AS right to provide services in the Republic of Latvia are solved

28.07.2017

Press release

On 21st of July 2017 the Regional Administrative Court in Riga made a decision to terminate proceedings based on Versobank AS application.

According to the administrative agreement signed by Versobank AS and FCMC the case regarding Versobank AS is closed and prohibitions to provide financial services in the territory of the Republic of Latvia do not apply any longer.

Versobank AS may provide financial services in the Republic of Latvia and attract new clients in the territory of the Republic of Latvia according to the provisions of relevant legal acts.

According to Versobank AS Chairman of the Management Board Aivo Adamson: "Resolution of differences with FCMC and the conclusion of administrative agreement was a priority issue for us. We are glad it has been reached. We do not aspire for controversies, we don't need them. Our aim is to concentrate on Bank's on-going development and providing quality service in compliance with all legislative regulations of financial market".


Background:

On 6th September 2016, the Latvian Financial and Capital Market Commission (the “FCMC”) issued a regulatory pronouncement prescribing inter alia to cease Versobank AS’s operations at Riga (Latvia) cross-border office. On its part, Versobank AS respectfully disagreed with FCMC’s interpretation of the European law and appealed the FCMC’s pronouncement in the Latvian administrative court. The FCMC and Versobank AS continued constructive discussions and have entered into an administrative agreement which resulted in the Bank submitting an application to the court to terminate the proceedings.

The FCMC public announcement regarding Versobank AS case is available on the website.


Aivo Adamson

Chairman of the Management Board