The Ministry of Finance: adopted proposals reduce administrative costs for business and the state

The Government approved the draft amendment to the Law prepared by the Ministry of Finance and the Bank of Lithuania, which allows for financial sector participants and the supervisory authority to conclude an administrative agreement before the legal dispute arises.

The draft law will help to reconcile different interests of the state and the individual, provide more clarity for the financial business and allow for a quicker and simpler agreement with the supervisory authority on the reduction and payment of fines.

 “A year ago, we approved the Fintech sector development guidelines, one of the objectives of which is to change the model of financial market participants’ relations with the supervisory authority. We also offer ways to maintain relationship between a person or a company and a public authority based on mutual trust and reduce bureaucratic costs,” Vaida Česnulevičiūtė – Markevičienė, Vice-Minister of Finance, says.

According to her, these so-called amicable agreements will increase the speed of decision-making and reduce the administrative burden on society.

However, an amicable agreement is possible only if there is a mutual agreement on both the circumstances and the consequences. The financial market company to which the sanction is intended to be applied, having received from the supervisory authority essential information about the established factual data, will be able to voluntarily propose to the Bank of Lithuania to conclude an administrative agreement.

The currently valid legal regulation enshrines the possibility for the parties to conclude a peace agreement only in a judicial process but does not provide for the possibility of an amicable agreement earlier. 

The analysis carried out by the European Securities and Markets Authority and the sharing of good practices in this area also encourage consideration of the possibility of concluding an administrative peace agreement at an earlier stage than judicial disputes.

Last updated: 13-05-2024

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