Head of Latvian Finance and Capital Market Commission steps down

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The chairman of Latvia’s Finance and Capital Market Commission (FCMC) Pēters Putniņš and his deputy Gunta Razāne submitted resignations on Thursday, 4 July, as confirmed by Finance Minister Jānis Reirs.

Both submitted resignations, asking to be relieved of duties as of 15 July, said Reirs. He confirmed forwarding resignations to Saeima speaker Ināra Mūrniece along with a letter, requesting the matter regarding Putniņš and Razāne to be discussed by Saeima’s Budget and Finance Committee and then the parliament.

Reirs added that Razāne submitted her resignation to him in person, whereas Putniņš had informed him of his decision to write one a week prior over the phone.

With Putniņš and Razāne leaving their posts, they become eligible for compensation worth 80% of their annual wage.
From 20 December 2012 onward Putniņš served as deputy chairman of FCMC. On 11 February 2016 the Saeima approved him as chairman of FCMC. Razāne was appointed as deputy chairperson of FCMC by the Saeima on 27 October 2016.

FCMC council members Gvido Romeiko, Ludmila Vojevoda and Nora Dambure will continue working.

Finance Minister Jānis Reirs and the council of Bank of Latvia will now have to pick an acting head for FCMC for the Saeima to decide later. Jānis Silakalns, press-secretary of the Bank of Latvia, confirmed that the bank’s council and the finance minister will pick such a candidate.

The law dictates that in the event of the Saeima relieves the chairman of deputy chairman of FCMC, an acting head is appointed until replacements have been found and to ensure continued unhindered operations of FCMC. The next meeting of the Saeima is scheduled for Monday, 8 July.

On 28 June, Latvia’s President Raimonds Vējonis announced amendments to the Law on the Financial and Capital Market Commission. These amendments provide for reducing the council of FCMC from five people to three, as well as providing compensation for the chairman and his deputy for stepping down before 1 August.

In accordance with amendments to the law, both aforementioned officials are eligible for a single-time compensation worth 80% of their annual wage for voluntarily stepping down from their posts. The compensation is paid from FCMC budget.

Information published on FCMC website shows that Putniņš’s monthly wage is EUR 90 000, whereas Razāne’s wage is EUR 7 600. Putniņš‘s annual wage is EUR 108 000 and Razāne’s – EUR 91 200.

This means Putniņš is eligible for EUR 86 400 and Razāne – for EUR 72 960, according to estimates from LETA.
Declaration information published on the website of the State Revenue Service states that Putniņš was paid EUR 109 902, whereas Razāne was paid EUR 92 519 in 2018.

At the same time, the law provides for the Cabinet of Ministers to pick a candidate for the post of chairman of FCMC council by 1 October.

Amendments to the law state that the next council chairman of FCMC is approved by the Saeima following recommendation from the Cabinet of Ministers. The other two council members are approved by the Saeima following recommendation from the FCMC chairman and approval from the council of the Bank of Latvia and the country’s finance minister.

Amendments to the law are part of the Latvian government’s «makeover» of the finance sector. They provide considerable changes to the finance sector’s supervisory institutions.

Meanwhile, SIA Executive Search Baltics (Amrop) won in the personnel selection process organized by the State Chancellery to find a new chairman for FCMC. The company will provide services to the State Chancellery for EUR 26 000.

The State Chancellery explains that services of the personnel selection process are needed to find an appropriate candidate. Amrop will pick candidates, evaluate their competences and perform a market study.

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