Bank of Lithuania

Operator of a peer-to-peer lending platform

Operator of a peer-to-peer lending platform shall mean a legal entity, except for a non-profit legal entity, engaged in administration of a peer-to-peer lending platform.

A legal entity shall become entitled to engage in operations as an operator of a peer-to-peer lending platform only upon inclusion thereof in the Public List of Operators of a Peer-to-Peer Lending Platform operating in accordance with the Republic of Lithuania Law on Real Estate Related Credit (352.5 KB ) (hereinafter – Law) (hereinafter – the Public List of Operators of a Peer-to-Peer Lending Platform) by the supervisory authority.

Activities of an operator of a peer-to-peer lending platform and the procedure for inclusion thereof in the Public List of Operators of a Peer-to-Peer Lending Platform are regulated by the Law.

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Information and documents to be submitted for inclusion in the Public List of Operators of a Peer-to-Peer Lending Platform

An entity may be included in the Public List of Operators of a Peer-to-Peer Lending Platform if it meets the requirements specified in Paragraph 3 of Article 12, Paragraphs 1 and 3 of Article 31 and Paragraphs 4 and 5 of Article 37 of the Law and submits documents, data, and/or information to the supervisory authority as specified in the supervisory authority’s legislations:

  • application regarding inclusion in the Public List of Operators of a Peer-to-Peer Lending Platform;
  • documents, data, and/or information confirming that the entities specified in Paragraph 2 of Article 37 of the Law meet the requirements established in Paragraphs 1 and 3 of Article 31 of the Law;
  • documents, data, and/or information confirming information regarding compliance with the requirement in respect of the authorised capital as specified in Paragraph 4 of Article 37 of the Law;
  • approved business continuity plan in compliance with the requirements specified in Paragraph 5 of Article 37 of the Law;
  • regulations applicable to assessment of the credit rating of the borrowers and responsible lending in compliance with the provisions of Paragraph 3 of Article 12 of the Law.

Levy for entering on the list

Prior to applying for being entered on the Public List of Operators of a Peer-to-Peer Lending Platform Operating in Accordance with the Republic of Lithuania Law on Real Estate Related Credit it is necessary to pay into the account of the State Tax Inspectorate (STI) a state levy for entering on the List, which is currently EUR 149 (the amounts of levies are fixed according to Resolution of the Government of the Republic of Lithuania No 1458 of 15 December 20001).

The procedure for the generation of online banking orders into the income collection accounts of the STI and the numbers of income collection accounts are available on the website of the STI.

 

1 – Available only in Lithuanian.


Requirements applicable to the managers and the stakeholders of an operator of a peer-to-peer lending platform

Manager of the operator of a peer-to-peer lending platform shall mean the manager or a member of the management body or other authority (except for meeting of stakeholders) as established by the law governing the legal form of the operator of a peer-to-peer lending platform or foundation documents thereof.

If a share of the voting rights or the authorised capital held by a manager, natural or legal entity or a jointly operating entity equals to or exceeds 20 per cent or if such an entity could have a direct and/or indirect decisive impact on the lender based on the definition established in the Law on Consolidated Financial Reporting by Groups of Undertakings, such a person shall not qualify to hold a managing position, if he/she meets at least one of the following conditions:

  • a natural entity has been found guilty of committing criminal activities related to money laundering or terrorist financing, felony or capital crime or a crime or misdemeanour in respect of property, property rights and property interests, economy and business practice, the financial system or criminal activities equivalent to them based on criminal laws of other states, if conviction for them has not expired or it has not been reversed or less than 5 years have passed since the effective date of the court judgement based on which the natural entity was found guilty of the criminal acts specified in Item 1 of Paragraph 1 of Article 31 of the Law;
  • conviction for the criminal acts specified in Item 1 of Paragraph 1 of Article 31 of the Law has come into effect in respect of a legal entity and less than 5 years have passed since the effective date of the court judgement;
  • an administrative penalty or other sanction established by the laws has been imposed on him/her for violation of the regulations established in a law or other legislation governing provision of financial services or operations of financial institutions, if less than one year has passed since imposition of the administrative penalty or other sanction established by the laws;
  • he/she directly or indirectly manages or managed a qualifying share of the authorised capital and/or the voting rights or a share enabling to have a direct and/or indirect decisive impact on the legal entity or if he/she is or has been the manager of a legal entity, which has been subject to sanctions for gross violations of the regulations established in the laws or other legislations governing provision of financial services or operations of financial institutions or the title to engage in provision of financial services has been withdrawn as a result of such a violation, if less than 5 years have passed since imposition of the sanctions, or conviction for the criminal acts specified in Item 1 of Paragraph 1 of Article 31 of the Law has come into effect in respect of this legal entity and less than 5 years have passed since the effective date of the court judgement.

The manager and the members of the management body of a legal entity shall have knowledge and skills, which would ensure proper implementation of duties defined by the Law and shall meet the following requirements in terms of knowledge and skills:

  • the manager of a legal entity shall have a higher education in the fields of law, management, business administration, or economics and at least 2-year work experience related to development, distribution of credit products, or intermediation and/or management of a financial institution engaged in such operations and have knowledge on credit products, acquisition of real estate, guarantees, real estate registration procedure, real estate market, as well as have knowledge of legislations governing protection of consumer rights, assessment of credit rating of borrowers;
  • at least two members of the management body shall have a higher education in the fields of law, management, business administration, economics, and shall have and at least one-year work experience related to development, distribution of credit products, or intermediation and have knowledge on credit products, acquisition of real estate, measures for securing implementation of obligations assumed under the credit agreement, real estate registration procedure, real estate market, as well as have knowledge of legislations governing protection of consumer rights, assessment of credit rating of borrowers.

An operator of a peer-to-peer lending platform must notify the supervisory authority in advance of all future changes in the heads and participants, submitting together information, specified by the supervisory authority, necessary to assess whether the new head being appointed or to be appointed, and/or another person meet the requirements established in Paragraphs 1 and 3 of Article 31 of the Law. A newly appointed or elected manager may take the office, and another entity may acquire a share of the voting rights or the authorised capital of the operator of a peer-to-peer lending platform specified in Paragraph 1 of Article 31 of the Law enabling to make a direct and/or indirect decisive impact on the legal entity only after the supervisory authority approves his/her candidacy or the acquisition transaction.

The supervisory authority shall pass a decision on whether to approve or dismiss the manager’s candidacy or the acquisition transaction within 30 business days since submission of the application and the receipt date of all the required documents, data, and/or information

If not all documents, data, and/or information have been submitted or if the submitted documents, data, and/or information are incomplete or inaccurate, the supervisory authority shall request to submit the missing or specified documents, data, and/or information required in order to pass the decision by the deadline set by the supervisory authority. In that case the supervisory authority shall pass a decision on whether to approve or dismiss the manager’s candidacy or the acquisition transaction no later than within 30 business days since the receipt date of the missing or specified documents, data, and/or information.


Term for inclusion in the public list

Upon consideration of an entity’s application regarding inclusion thereof in the Public List of Operators of a Peer-to-Peer Lending Platform and the submitted documents, data, and/or information, the supervisory authority shall pass a decision to include an entity in the Public List of Operators of a Peer-to-Peer Lending Platform or to dismiss this application no later than within 30 business days since the receipt date of the application and all properly formalised documents, data, and/or information. If not all documents, data, and/or information have been submitted or if the submitted documents, data, and/or information are incomplete or inaccurate, the supervisory authority shall request to submit the missing or specified documents, data, and/or information required in order to pass the decision by the deadline set by the supervisory authority. It shall pass a decision to include an entity in the Public List of Operators of a Peer-to-Peer Lending Platform or to dismiss this application no later than within 30 business days since the receipt date of the missing or specified documents, data, and/or information. An entity shall be included in the Public List of Operators of a Peer-to-Peer Lending Platform no later than within 2 business days since the date when the supervisory authority passes the decision.


Laws and legal acts regulating activities of operators of a peer-to-peer platform and inclusion thereof in the public list

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Last update: 28-08-2019