RESOLUTIONS OF THE BOARD OF THE BANK OF LITHUANIA

AB “Žemaitijos pienas” fined for late notification of manager of issuer’s transaction 

The Board of the Bank of Lithuania examined the protocol of violation drawn up against AB “Žemaitijos pienas” and fined the latter with LTL 1000 for late notification of the transaction concluded by manager of the issuer A. Pažemeckas today. 

The information on the transaction concluded by A. Pažemeckas was only publicly disclosed on 12 August 2011, i.e. almost 3 months beyond due time.   

AB “Žemaitijos pienas” breached the requirements laid down in paragraph 4 of Article 62 of the Law on Markets in Financial Instruments and item 11 of the Rules on the Notifications on the Transactions Concluded by Managers of the Issuer in Securities of the Said Issuer, as the responsibility for timely public disclosure of a transaction concluded by a manager has been imperatively fixed for the issuer.      

In imposing the enforcement measure, the Board of the Bank of Lithuania took into account the extenuating and other circumstances identified in the case.

Amendments to the Rules of Investment Funds of UAB “Ūkio banko investicijų valdymas” approved

The Board of the Bank of Lithuania approved of the amendments to the rules drawn up by UAB “Ūkio banko investicijų valdymas“ of harmonised investment fund “Ūkio banko obligacijų fondas“, harmonised investment fund “Ūkio banko racionalaus investavimo fondas“, and complex special collective investment undertaking investing in other collective investment undertakings  “Ūkio banko investavimo galimybių fondas”, and permitted to amend the entire and abridged prospectuses. The resolution was adopted having taken into account a request from UAB “Ūkio banko investicijų valdymas”.

The amended documents provide for a possibility to change investment fund shares/units among all funds managed by UAB “Ūkio banko investicijų valdymas” (until now, a possibility to change investment fund shares/units among the sub-funds of “Ūkio banko investavimo galimybių fondas” only had been provided); contact information was updated, the list of expenditure was expanded (by including legal and other expenditure) without increasing maximum tax rates, the descriptions of risks were updated, in abridged prospectuses the operating performance of the funds was presented.      

UAB “Prudentis” permitted to divide (wind up) its investment fund 

The Board of the Bank of Lithuania repealed the decision of the Securities Commission of the Republic of Lithuania of 2 June 2011 by which the rules of the harmonised investment fund “Prudentis Quantitative Value Fund” under establishment by UAB “Prudentis”, the entire and abridged prospectuses were approved of and it was allowed to conclude a contract on depository services. The resolution of the Board of the Bank of Lithuania was adopted taking into account a request from UAB “Prudentis” for the division (winding up) of the said investment fund. 

The Board also permitted amending the contract on depository services with Swedbank AB bank on the other collective investment undertakings managed by UAB “Prudentis”.  

The Lithuanian Central Credit Unit permitted repaying subordinated loan

The Board of the Bank of Lithuania permitted the Lithuanian Central Credit Union repaying the subordinated loan of EUR 400 000 (equivalent to LTL 1 381 120) received under the subordinated loan agreement of 24 October 2007 from Oikocredit, EcumenicalDevelopment Cooperative Society U.A.  before the term fixed in the loan agreement. Repayment of the loan was due on 14 November 2012.    

The Rules for Managing the Loan Risk Database amended

The Board of the Bank of Lithuania amended the Rules for Managing the Loan Risk Database, in which the number of the types of inquiry was reduced: there were three, now two of them. Streamlining the number of inquiries will enable using information system resources in a more rational way.

Another resolution is related with the data submitted to the Loan Risk Database by AB bank SNORAS.  It was resolved to provide the data submitted to the Loan Risk Database by AB bank SNORAS before 16 November 2011 to the providers of the data of the Base for 24 months after the date of revocation of the banking licence for the Bank. In approval of this provision, the Board of the Bank of Lithuania took into consideration a wish of commercial banks to be provided for a limited time with the data submitted to the Loan Risk Database of AB bank SNORAS. The data will not be aggregated with that submitted by other banks, will only be submitted according to the loan of each borrower on an individual basis, indicating in the reply that this data will no longer be updated.    

Settlement of disputes between consumers and financial market participants approved

The Board of the Bank of Lithuania approved the Description of the Settlement of Disputes between Consumers and Financial Market Participants, Consumer Application Form, and committed the Financial Services and Markets Supervision Department of the Supervision Service of the Bank of Lithuania with settling disputes and adopting decisions regarding disputes between consumers and financial market participants.  

This Description provides detailed Settlement of Disputes between Consumers and Financial Market Participants established in the Law on the Bank of Lithuania.  

It is intended to comprehensively introduce the media to the approved Settlement of Disputes between Consumers and Financial Market Participants next week.

Results of competition for graphic designs of 10 litas coin dedicated to Science approved

In the competition for the graphic design of the 10 litas collector coin from the “Lithuanian Science” series, the first place went to Rytas Jonas Belevičius, the second one to Vytautas Narutis and Alfonsas Vaura, the third one to Rūta Ničajienė.  The results of the competition were approved by the Board of the Bank of Lithuania today.

The Board also approved the graphic designs for the 10 litas collector coin created by R. J. Belevičius.  It was established that the edge of the coin must be plain.  

The collector coin dedicated to Medical Science is to be launched in the fourth quarter this year. R. J. Belevičius' design depicts the hands of cardiologists performing heart surgery.