Bank of Lithuania issues recommendations for licence applicants
The Bank of Lithuania has prepared comprehensive practical guidance for financial market newcomers seeking to start licensed activities in Lithuania.
“These recommendations are a kind of homework that needs to be done by new market participants before applying for licences to ensure higher-quality dialogue. All newcomers can get acquainted with the most frequent mistakes and best practices collected in recent years,” said Jekaterina Govina, Director of the Supervision Service of the Bank of Lithuania.
Rules for drawing up business plans, requirements for accounting, the management body and key function holders, aspects to pay attention to in ensuring compliance and meeting money laundering prevention requirements – these and other specific recommendations are aimed at those seeking to obtain a licence of electronic money or payment institution, bank, specialised bank, management company, financial brokerage company or financial adviser undertaking, or to be included in the public lists of crowdfunding platform operators, credit issuers, etc. The recommendations also include advice to those seeking to attract funds, for example, by issuing securities.
These recommendations reflect the Bank of Lithuania’s experience in the area of licensing as well as in implementing the Newcomer Programme, which has already attracted 500 companies from 60 countries since 2016. This one-stop shop consultation programme is intended for financial market participants interested in the opportunity to provide financial services in Lithuania and from it.
As the Bank of Lithuania takes a thorough risk-based approach when assessing potential financial market participants, not all licence applicants are granted authorisation. Since 2018, the Bank of Lithuania has received more than 300 applications, however, only 200 of them have been approved. The highest number of licences (approximately 50) in the recent three years was issued to electronic money institutions.