FKTK

The Financial and Capital Market Commission (FKTK) is the primary regulatory authority overseeing Latvia’s financial markets. Established in 2001, FKTK has played a crucial role in ensuring the stability and integrity of the country’s financial sector.

FKTK History

FKTK was created in 2001 as a result of merging the Bank of Latvia’s Supervisory Department and the Securities Market Commission into a single entity. This merger aimed to streamline financial regulation in Latvia and provide more comprehensive oversight of the financial sector.

FKTK Scope and Supervision

FKTK’s primary objective is to maintain the stability and integrity of Latvia’s financial sector. Its wide-ranging responsibilities include:

1. Regulating and supervising financial institutions: FKTK oversees various financial institutions, such as banks, investment firms, insurance companies, and pension funds, ensuring they adhere to strict regulations and maintain market stability.
2. Supervising the securities markets: FKTK is responsible for regulating and supervising the securities markets in Latvia, ensuring proper disclosure, transparency, and fair trading practices.
3. Implementing anti-money laundering and counter-terrorism financing measures: FKTK enforces compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations to maintain the integrity of the financial system.
4. Protecting consumers and investors: FKTK works to safeguard the interests of consumers and investors by enforcing regulations, promoting transparency, and raising awareness of potential risks.

FKTK Investor Compensation Guarantees

FKTK administers the Deposit Guarantee Fund (DGF) and the Investor Protection Fund (IPF), which provide compensation to eligible investors and depositors in cases where a financial institution fails or becomes insolvent. The DGF covers deposits of up to €100,000 per depositor and per institution. The IPF covers investments up to €20,000 per investor and per institution. These guarantees ensure that investors are protected from the adverse effects of financial institution failures.

Organization Type

FKTK is an autonomous public institution that operates under the jurisdiction of the Republic of Latvia. Its autonomous status allows FKTK to make impartial decisions in the best interest of the financial markets and investors. FKTK is governed by a council, which is responsible for setting the strategic direction and ensuring effective oversight of the institution’s operations. The day-to-day operations of FKTK are managed by its Chair, who is supported by a team of specialists and experts.