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Versobank AS opinion on FCMC decision


Press Release

On Tuesday, 6 September 2016, the Latvian financial supervisory authority, the Financial and Capital Market Commission (FCMC), decided to prohibit Versobank AS from providing financial services in Latvia, because the Bank allegedly used to provide services in Latvia in a way not authorised by the Estonian Financial Supervision Authority (EFSA).

Versobank AS is registered and fully licensed Estonian credit institution, which complies strictly with national and international legislation and applicable standards and which customer’s funds are protected among other by the Estonian Guarantee Fund.

The Bank is allowed to provide financial services in Latvia on the basis of freedom to provide services and according to EU Directive 2013/36/EU the Bank made such notification to Estonian Financial Supervision Authority presenting the full list of planned cross-border activities, which has been received and registered by FCMC as of 08.11.2013.

The fundamental freedoms on which the internal market of the European Union is built include among other the freedom to provide services and according to the European Court of Justice the freedom to provide services is applicable to banking services in the same way as to any other services. The Bank’s cross-border activity has been additionally and thoroughly assessed by a member of the Big Four, who has confirmed that under the free movement of services, being protected as one of the EU’s fundamental freedoms, the Bank has been acting in accordance with the applicable European Union rules.

The Bank shall assess the legal opportunities to dispute the mentioned FCMC’s decision as soon as it receives the full official resolution from the FCMC.

The Bank confirms that present situation shall not harm its investors nor customers. The Bank is working in its normal way and fully complies with its obligations. We have no problems with liquidity or with any other financial indicators.

The Bank shall give additional information as soon as the situation is clarified.

Riho Rasmann

Chairman of the Management Board

Versobank AS