Mantas Gofmanas, advocate at law firm TGS Baltic
The Bank of Lithuania has prepared a draft of the Regulations on Assessment Visits. The draft proposes to introduce a new form of cooperation of the Bank of Lithuania with market participants supervised by it – the assessment visits (the "Visits").
The purpose of the visits would be collection, analysis and systematization of information about activities of an entity, familiarization with processes performed by it, assessment of information about the entity presented by the entity itself or any other information, giving recommendations, consultations and methodological assistance to the entity. In other words, Visits would not mean checks (inspections, investigations) of entities’ activities, as currently performed by the Bank of Lithuania, and would not be aimed at identifying defects in activities of supervised entities or investigating how they comply with applicable statutory requirements.
Presumably, approval of the proposed new form of actions of the Bank of Lithuania should facilitate closer partnership and cooperation between the Bank of Lithuania and entities supervised by it, when the market supervisory authority not only unconditionally punishes for improper compliance with regulatory requirements, but, first of all, gives related methodological recommendations, consultations and other assistance. Thus, this initiative is welcome if Visits are really going to help to approach achievement of such goals and do not potentially become an additional bureaucratic process that may be undertaken by the supervisory authority in respect of market participants.
According to the proposed draft, an entity will have to be informed about a Visit no later than 10 business days in advance. The duration of a Visit is to be no more than 5 business days. No later than within 20 business days after a Visit by officers of the Bank of Lithuania, a Visit certificate will have to be prepared and presented to the visited entity. In case certain recommendations are given in it, within 20 business days after their receipt the entity will have to present information to the Bank of Lithuania about actions and measures it is going to take in order to follow the recommendations.