Resolutions of the Board of the Bank of Lithuania
Buildings in resorts and other locations in the country used for staff training and recreation to be transferred to the State Property Fund
The Board of the Bank of Lithuania decided to transfer the Bank of Lithuania-owned property to the state enterprise the State Property Fund by 30 June this year. According to the data as at 1 March this year, the overall residual value of this property is LTL 5.6 million. The property includes the buildings of the Staff Training and Wellness Centre in Palanga, Druskininkai and Molėtai region, as well as a few buildings and premises in Palanga and Vilnius.
This decision is to reduce the Bank of Lithuania’s expenses.
The Bank will be compensated for its property being transferred to the State Property Fund in accordance with the provisions laid down in Article 2 of the Law on the Amendment of Article 23 of the Law on the Bank of Lithuania.
The premises in the heart of Vilnius to be transferred to the Competition Council
Having decided that several buildings in the heart of Vilnius are no longer needed for the implementation of the Bank of Lithuania’s functions, the Board of the Bank of Lithuania decided to transfer to the Competition Council the Bank of Lithuania-owned administrative building at Jogailos g. 14 in Vilnius to manage, use and have the disposition of it by the right of trust, as well as the premises at Jogailos g. 16–6 and 16–7 in Vilnius by 10 April this year.
These premises had housed the Credit Institutions Supervision Department, which was winded up at the end of last year carrying out reform of the financial market supervisory system. Part of its staff has been transferred to the new Supervision Service which settled down at Žirmūnų g. 151 in Vilnius.
The Bank’s premises on Jogailos g. in Vilnius have been transferred to the Competition Council at the request of the latter.
10 litas and 20 litas banknotes of 1997 issue to be withdrawn from circulation
The Board of the Bank of Lithuania decided to withdraw 10 litas and 20 litas banknotes of 1997 issue from circulation as from 1 June this year. As from 1 June this year these litas banknotes will no longer be legal tender and will not be accepted for payment and settlement. 10 litas and 20 litas banknotes of 1997 issue will be replaced at the Bank of Lithuania as from 1 June this year without restriction.
According to experts, these banknotes no longer satisfy current requirements in terms of design and security against counterfeiting. These banknotes have been increasingly rarer appearing in the hands of population. According to experts, an amount of these banknotes not above 0.3–0.5 per cent of a total of them produced is likely to have remained in circulation, and their withdrawal from circulation is not to be a problem for the population.
Following the 1997 issue, each of the said denominations was produced and issued twice still (in 2001 and 2007), of a newer design and with effective security against counterfeiting.
The Bank of Lithuania has withdrawn 10, 20, 50, 100 litas banknotes of 1991 issue, 2, 5, 10, 20, 50 litas banknotes of 1993 issue, and 1 litas banknote of 1994 issue from circulation.
Decision to issue a payment institution licence to a Visaginas-based company
The Board of the Bank of Lithuania decided to issue a payment institution licence to UAB Visagino būstas, which gives a right to provide the payment service specified in Article 5(6) of the Law on Payments, money remittances. By now, licences to provide payment services had been issued to 22 enterprises.
Regulations of investment fund ORION PORTFOLIO FUND allowed to be approved
The Board of the Bank of Lithuania allowed UAB Orion Asset Management to approve the regulations of the open type complex special alternative investment fund ORION PORTFOLIO FUND being established by this company and the entire prospectus, and the abridged prospectus of this fund’s subfund ORION ABSOLUTE RETURN PORTFOLIO, and to conclude a contract on depository services with bank Swedbank, AB. The complex special alternative investment fund ORION PORTFOLIO FUND is only for professional investors.
Licence of a management company revoked
The Board of the Bank of Lithuania revoked licence No.VĮK-017 issued for UAB F. International Asset Management (Vilnius) by Resolution of the Securities Commission 2K-50 of 18 February 2011. The Resolution was adopted considering a request from this company. Together with the request, the company returned the licence of a management company which had acted in accordance with the Law on Collective Investment Undertakings.
Licence of an insurance brokerage company revoked
The Board of the Bank of Lithuania revoked for UADBB Afirmata (Vilnius) the licence of a brokerage company No. 00063 issued by the Resolution of the Insurance Supervisory Commission No. N-200 of 28 December 2004. The company was instructed to return to the Bank of Lithuania the original licence of an insurance brokerage company within five business days.
The licence of this company was revoked at the request of its sole shareholder.
Seven legal acts no longer necessary for financial market supervision abrogated
Having concentrated financial market supervision within the Bank of Lithuania as from early this year and this institution adopting necessary legal acts, three resolutions of the Securities Commission and three resolutions of the Insurance Supervisory Commission, whose functions have been taken over by the Bank of Lithuania, as well as one order of Director of the State Consumer Rights Protection Authority were recognised as no longer effective.
The Board of the Bank of Lithuania recognised as no longer effective the 9 March 2004 Resolution of the Insurance Supervisory Commission No. N-28 “On approval of the regulations for the settlement of disputes between consumers and insurers, and the consumer application form” (with further amendments) and the 14 March 2011 Order of Director of the State Consumer Rights Protection Authority No. 1-36 “On approval of the regulations for extrajudicial advance settlement of disputes between consumer credit receiver and consumer credit provider or consumer credit intermediary”. The area regulated previously by these legal acts is now covered by the Board of the Bank of Lithuania’s approved Description of the Order for the Settlement of Disputes of Consumers and Financial Market Participants.
For the purposes of legal clarity, the 3 February 2011 Resolution of the Securities Commission No. 1K-5 “On approval of the regulations for the servicing of individuals at the Securities Commission of the Republic of Lithuania” and the 13 January 2004 Resolution of the Insurance Supervisory Commission No. N-3 “On general requirements for the approval of documents to be presented to the Insurance Supervisory Commission of the Republic of Lithuania” were recognised as no longer effective. After consolidation of supervision within the Bank of Lithuania these legal acts lost their urgency; should they be left effective, market participants and other entities concerned might be uncertain regarding observance of the procedures specified in the above resolutions.
One more legal act was repealed with a view to avoiding uncertainty which legal acts should be observed while carrying out inspections in the area of supervision previously conducted by the Securities Commission. Therefore, the 3 February 2011 Resolution of the Securities Commission No. 1K-4 “On approval of the regulations for the procedure of inspections conducted by the Securities Commission of the Republic of Lithuania” (with further amendments) was recognised as no longer effective. Before a new inspection procedure is prepared, Article 81 of the Law on Market in Financial Instruments” is to be observed, which provides the supervisory authority with a right to organise and conduct inspections.