Regulatory organization FCMC

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$100
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FCMC (Financial and Capital Market) is an independent Commission on financial markets and capital markets in Latvia, established in 1997. Today the Latvian regulator FCMC is one of the most stringent and respected regulatory bodies in the world, because it has a very wide range of powers. In addition to the standard revocation of licenses, which is neglected by many regulators, FCMC applies to violators of financial laws forced recovery from large fines, to administrative and even criminal punishment. The main mission of the Commission is to ensure the quality of investor protection and increase competition in the financial market of Latvia.

The main functions of the regulator FCMC

  • The licensing and control of commercial banks, brokerage companies, investment and insurance projects;
  • Ensure the stable operation of financial markets and protection of investors ' interests;
  • Compliance with the implementation by banks and brokers of the norms and standards of financial legislation;
  • Monitoring of the current activities of banks and brokerage firms;
  • Conflict resolution between companies and their customers.

The powers of regulatory agencies FCMC

  • Revocation of license and forced the bankruptcy of the company in case of detection of involvement in financial fraud;
  • The application of rigid penal sanctions (a striking example is the Ukrainian PrivatBank, which had to pay a fine of 2 million euros for involvement in doubtful transactions);
  • Administrative penalty (Moldovan Bank Banca Sociala had to dismiss from the work of all the management and pay a decent fine);
  • FCMC is one of the few regulators that are actively cooperating with law enforcement authorities in the case of major economic crimes may conduct a formal criminal investigation with subsequent transfer of the case to the court.

Insights

Thus, the regulatory organization of the FCMC is very reliable Supervisory authority exercising control over banks and Forex brokers. To obtain a license FCMC, it is necessary to undergo a rigorous audit of the financial statements and other documents of the company, and at the slightest deviation from the financial legislation, the company will be charged with huge penalties. Therefore, the presence of the broker license FCMC indicates the reliability and integrity of the company.