Investment firms belonging to LHV Group violate notification obligation
As the Financial Supervision Authority was not informed about changes in the management board of the undertakings in a timely manner, the Supervision Authority imposed a fine on two investment firms belonging to LHV Group - AS Lõhmus, Haavel & Viisemann (LHV) and AS LHV Financial Advisory Services (LHV FAS). Under the Securities Market Act, a legal person not fulfilling its notification obligation in a timely manner may be charged a fine of up to 50 000 kroons.
An investment firm is obliged to notify the Financial Supervision Authority of the selection or appointment of managers, their resignation or initiation of their premature removal within ten days starting from taking the relevant decision or receipt of the application. The Supervision Authority was not informed in a timely manner that on 19 December 2005, the earlier membership of the LHV supervisory board and the LHV FAS supervisory board was removed and new members were nominated. The information was communicated to the Financial Supervision Authority with a delay of more than three months, which impeded conducting efficient supervision over the suitability of the investment firms managers and their compatibility with requirements prescribed by law.
The Financial Supervision Authority imposed a fine of 10 000 kroons on both LHV and LHV FAS, which has been paid by now.