Surveillance Committee established at the Riga Stock Exchange

15.01.2007 RIG

Starting with January 11, 2007, Riga Stock Exchange Surveillance Committee will commence its operations. The RSE has delegated a part of its functions related to surveillance of regulated market to an independent body. Up to now the sanctions to issuers and members in case of breach of the RSE rules were applied solely by the RSE Management Board. Now the Surveillance Committee will have the authority to take more serious surveillance decisions. The Committee consists of experts who are not related to the RSE. Delegating a part of surveillance functions to an independent body will eliminate any conflict of interest potentially to arise in a situation when the Riga Stock Exchange is the market organizer and the surveillance body at the same time.

Surveillance Committee members are appointed for a three-year term, and approved by the Riga Stock Exchange Council. Surveillance Committee consists of seven independent experts with adequate education and expertise in the capital market and legal issues: Viktors Gustsons (“Seesam Life Latvija”, Chairman of Management Board), Lauris Liepa („Liepa, Skopiņa / BORENIUS”, partner), Edgars Līvmanis (“NCH Advisors Inc.” lawyer), Jānis Leja (Latvian Chamber of Commerce and Industry, General Director), Māris Purgailis (University of Latvia, Faculty of Economics and Management, Dean), Rolands Paņķo (“Latvijas Hipotēku un zemes banka”, Deputy Chairman of Management Board), Uldis Zelmenis (“BTA”, Asset Manager). Surveillance Committee on its first meeting on January 11, 2007 elected Viktors Gustsons Chairman of the Committee, and Edgars Līvmanis his deputy.

The ongoing surveillance of the issuers and members will remain the duty of the Riga Stock Exchange specialists, who will be responsible for preparing materials for the needs of Surveillance Committee. The Committee decisions may be appealed to the Financial and Capital Market Commission, arbitration court or court.

Daiga Auziņa-Melalksne, Chairman of the Riga Stock Exchange Management Board, comments on the establishing of the Surveillance Committee: “The Riga Stock Exchange now has put in place a mechanism that will assure independent and unbiased decision-taking regarding issuer and member surveillance. Thus the RSE has accomplished one of the key tasks towards setting up an efficient, transparent and reliable securities market”.

Comparable disciplinary bodies are already operational at OMX exchanges. In the Baltic market Tallinn Stock Exchange has a body with similar functions, whereas the Vilnius Stock Exchange is planning to set up Surveillance Committee in the first quarter of 2007.


For more information, please contact:
Āris Dreimanis, Corporate Communication Director
Riga Stock Exchange
Phone: +371 7212431