€27,000 fine imposed on Paydoo Payments, UAB
The Supervision Service of the Bank of Lithuania imposed a fine on the electronic money institution Paydoo Payments, UAB, for failing to hold client funds with a credit institution. According to the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions, an institution, having decided to safeguard client funds by way of segregation, must hold the funds with credit institutions (banks, credit unions) or the central bank of the Republic of Lithuania or another EU Member State, or invest them in secure and liquid low-risk assets.
Paydoo Payments, UAB, however, held a bulk of its customer funds with electronic money and payment institutions registered in other EU Member States, thus breaching the requirements laid down in the above-mentioned law.
Therefore, the Bank of Lithuania imposed on the institution a €27,000 fine.
Paydoo Payments, UAB, already complies with the legal requirement and holds client funds in separate accounts opened with credit institutions (aimed at segregation and protection of customer funds).
The Supervision Service has also found that on 30 June 2019 the institution did not comply with the established own capital requirements, although it is required to always hold its own capital that must not be lower than required by law. Moreover, the institution provided the Bank of Lithuania with incorrect information on the balance of its client funds held with payment and electronic money institutions as at the end of the third quarter of 2018. The institution has already eliminated the indicated shortcomings.
€11,000 fine imposed on BnP Finance, UAB
The Supervision Service of the Bank of Lithuania has established that the consumer credit provider BnP Finance, UAB, (Bobutės paskola, Pop kreditas) has for more than two years failed to check whether applicants for a loan are not included in the list of persons for whom the requests have been submitted not to allow the conclusion of credit agreements. The Supervision Service imposed on the institution a €11,000 fine. BnP Finance, UAB, has already eliminated the indicated shortcomings.
Issuers should comply with the Guidelines on Risk Factors
The Supervision Service of the Bank of Lithuania has decided to comply with and implement the recommendations laid down in the Guidelines on Risk Factors under the Prospectus Regulation of the European Securities and Markets Authority.
The Guidelines provide recommendations to supervisory authorities, issuers and persons responsible for prospectus on the disclosure of risks of issued securities as well as determination of their materiality, specificity and presentation of risk factors across categories. The Guidelines also provide examples of risk disclosure.
