Financial and Capital Market Commission (FCMC)

Basic Information

The Financial and Capital Market Commission (FCMC) is the independent regulatory authority overseeing Latvia’s financial and capital markets. Established in 1997, it was later integrated into Latvijas Banka (the Central Bank of Latvia) in 2023 as part of a structural reform to enhance efficiency and financial stability. The FCMC operates from Riga, Latvia, and its official website provides regulatory updates, licensing information, and investor protection resources.

Historical Background

The FCMC was created to supervise Latvia’s rapidly evolving financial sector post-independence. Initially, it focused on banking, insurance, and securities markets. Over time, its mandate expanded to include stringent oversight of Forex brokers, anti-money laundering (AML) enforcement, and investor protection. In 2023, it merged with Latvijas Banka to consolidate financial supervision under a single authority, improving systemic risk management and regulatory coherence.

Legal Authority and Regulatory Framework

The FCMC derives its powers from Latvian laws, including the Law on the Financial and Capital Market Commission and EU financial directives. Post-integration, its functions are governed by the Law on Latvijas Banka, ensuring compliance with Eurosystem standards. The regulator enforces:

• Licensing requirements for financial institutions
• AML/CFT (Combating the Financing of Terrorism) regulations
• Investor compensation schemes under the Deposit Guarantee Fund

Key Responsibilities and Scope

The FCMC oversees:

• Banking: Supervision of commercial banks, including liquidity and solvency monitoring
• Securities & Forex: Licensing and compliance of brokers, with strict penalties for violations
• Insurance: Regulation of insurers and pension funds
• Resolution Authority: Managing failing financial institutions to prevent systemic collapse

Contact Details and Address

Headquarters: K. Valdemāra iela 2A, Riga, LV-1050, Latvia (relocated from Kungu iela 1 post-integration)

Website: https://fktk.lv (redirects to Latvijas Banka’s dedicated section for financial supervision)

General Inquiries: +371 6702 5700

How to Verify a Regulated Entity

To confirm if a financial firm is licensed by the FCMC:

1. Visit Latvijas Banka’s official website (https://www.bank.lv/en/)
2. Navigate to the Supervision section and access the register of licensed entities
3. Search by the company name or registration number
4. Cross-check details with the firm’s regulatory disclosures