The company SIA “Viainvest” has concluded an administrative agreement with the Financial and Capital Market Commission (FCMC) to extend the term for the fulfilment of obligations, as the company, on its own initiative, switched to operating in the regulated and safe market of financial instruments.
Since September 2021, when SIA “Viainvest” obtained the license of an investment brokerage firm, SIA “Viainvest” has been closely cooperating with the FCMC so that the transformation of the business model proceeds as efficiently and correctly as possible. Licence expressed the company’s desire to operate in a regulated and safe market of financial instruments in an effort to offer investors the opportunity to invest in asset-backed securities that are regulated, safe and prospective ways of investment.
It also marked the transition period of the VIAINVEST platform. SIA “Viainvest” undertook to develop base prospectuses, coordinate them with the FCMC and entirely switch to offering a new investment product to investors. The transition period anticipated replacing the sales of claim rights arising from consumer loans with offering asset-backed securities following the Financial Instruments Market Law (FIML) requirements, as well as ensuring compliance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (PMLTPF).
However, being aware that the verification of clients and procedures by the requirements of the law takes longer than initially predicted, until the VIAINVEST platform’s complete transition to financial instruments, SIA “Viainvest” asked the FCMC for permission to continue offering claim rights until the base prospectus is coordinated with the FCMC and published, which unfortunately was not granted. As a result, to ensure the continuity of the group’s business and the protection of investors’ interests, claim rights continued to be offered after the end of the transition period until 02.08.2022, when the transition to providing investments in the form of securities took place.
After constructive and productive negotiations, FCMC and SIA “Viainvest” concluded an administrative agreement on 12.10.2022. Within it, both parties agreed on the necessary improvements inspected by FCMC in the operation of the investment brokerage firm to eliminate the shortcomings in the field of PMLTPF until the beginning of April 2023. Before the administrative contract’s conclusion, SIA “Viainvest” has eliminated the identified FIML shortcomings and is currently actively working on eliminating the shortcomings of the PMLTPF following the instructions of the FCMC.
“We understand the shortcomings identified by the FCMC and actively work to eliminate them. The goal of the VIAINVEST platform is to provide high-quality and safe services to investors. Therefore we highly appreciate the constructive dialogue with the regulator, which is the main ally in implementing this goal. The conclusion of the administrative agreement confirms the understanding and responsibility for the processes we undertake to perform”, states Eduards Lapkovskis, chairman of the board of SIA “Viainvest”.
When deciding on the conclusion of the administrative agreement and the amount of the fine, the FCMC took into account that within the administrative case, SIA “Viainvest” has actively cooperated with the FCMC, including willingly and within the limits of its resources, eliminating the majority of detected shortcomings and starting work on other necessary processes on time.
Respecting the provisions of the administrative agreement with the FCMC, the company undertakes to cover the applied fine of 21,277.58 euros.
Currently, SIA “Viainvest” is developing, improving and strengthening its team with new industry professionals so that the necessary improvements and the platform operation meet the high requirements of both FCMC and investors.
Since 2016, when the VIAINVEST platform was founded, the total amount of financed loans has reached EUR 347.8M, while the amount of interest paid to investors is EUR 7.6M.