FCMC head Putnins and his deputy Razane tender resignation letters

RIGA - The Financial and Capital Market Commission’s (FCMC) chairman Peters Putnins and his deputy Gunta Razane tendered resignation letters today, Finance Minister Janis Reirs (New Unity) told LETA.

Both officials tendered their resignation letters, asking to relieve them of their positions as of July 15, the finance minister said. He informed that he had forwarded the resignation letters to Saeima Speaker Inara Murniece (National Alliance), asking to review the matter first in the Saeima Budget and Finance (Taxation) Committee and then at a parliament sitting.

While Razane handed her resignation letter to Reirs in person on Thursday, Putnins had informed Reirs about his decision to resign in a phone call at the beginning of the week.

As they leave their jobs at the FCMC, Putnins and Razane will be entitled to receive compensations in the size of 80 percent of their annual salaries under amendments passed recently to the FCMC law.

Putnins became FCMC deputy chairman in 2012 and has been chairing the regulator since February 11, 2016. Razane was appointed Putnins’ deputy on October 27, 2019.

Gvido Romeiko, Ludmila Vojevoda and Nora Dambure will continue as members of the FCMC Council.

Finance Minister Reirs and the Bank of Latvia Council now have to pick the FCMC’s acting heads who are then appointed by Saeima. Bank of Latvia Janis Silakalns told LETA that such a candidate would be nominated.

On June 28, President Raimonds Vejonis promulgated the bill reducing the FCMC Council to three members from five and providing the compensations to the FCMC and his deputy for quitting their positions by August 1.

The respective compensations payable to the resigning FCMC heads are EUR 86,400 for Putnins and EUR 72,960 for Razane.

The amended FCMC law stipulates that if the current FCMC chairman or his deputy submit their resignation and Saeima releases the persons from office until August 1, 2019, the current chairman and his deputy will be paid one-off compensation in the amount of 80 percent of his / her monthly salary at the end of his or her term of office. The compensation will be paid from the commission's budget.

In accordance with the amended law, the Cabinet of Ministers has to pick a candidate for FCMC chairman and recommend him or her to Saeima by October 1.

Lawmakers also adopted a proposal that Saeima appoints the chairman of the FCMC council on the recommendation of the Cabinet of Ministers, but the other two members of the FCMC council are appointed on recommendation of the FCMC chairperson, the Bank of Latvia Council, and the finance minister.

The FCMC chairperson can be released before term of office if that is demanded by at least 34 Saeima members.