Latvian financial regulator and deputy quit with golden handshakes

Financial and Capital Market Commission (FKTK) Chairman Peters Putniņš and his deputy Gunta Razāne both handed in their submitted their resignations on July 4, Finance Minister Jānis Reirs (New Unity) confirmed, according to the LETA newswire.

Both have resigned, asking to be released July 15, Reirs said. Both had been under pressure to do so for some months, while arguing against proposed reforms of the financial regulator's regulations as part of a more general overhaul of the problematic financial sector. 

Reirs said he had forwarded the resignations to Saeima for approval, adding that while Razāne had brought the application to him in person, Putniņš had informed him about his intentions by telephone earlier in the week.

Under the terms of an incentive to quit before the end of their terms of office offered to the pair, they will receive 80% of their annual salaries as a "golden handshake" payment. Thus Putniņš is in line for a payout of around 86,000 euros and Razāne 73,000 euros.

Putniņš took over as head of FKTK on February 11, 2016 while Razāne became his deputy in November the same year. 

Finance Minister Reirs, together with the Council of the Latvian central bank, now have to nominate interim management, to be appointed by the Saeima, before new regulations on the appointment of the FKTK board kick in later in the year which will see the head of the regulator appointed by Saeima on the recommendation of the Cabinet of Ministers.

Earlier this week FKTK released an overview in English of FKTK's achievements during 2016-9 - coincidentally the period of Putniņš' tenure - which is available to read online

Speaking July 5, Reirs confirmed the resignations had been officially received and said: "Successful FKTK activity is now particularly important in view of the need to implement the Moneyval recommendations to strengthen the anti-money laundering and anti-terrorism and proliferation financing system, and I would cite this as a key priority for the FKTK chairman during the transition period."

 Later of Friday, Reirs named Kristīne Černaju-Mežmali, FKTK's Head of the Monetary Financial Institutions Analysis Division as his pick to be the interim head of the regulator, though her appointment is subject to approval by Saeima, most likely on Monday July 8. 

0 comments
Comment
Comment using your social media profile
Banks
Economy