Court dispute between Financial Supervision Authority and Olari Taal ends
The Administrative Chamber of the Supreme Court decided on 22 December 2011 not to hear an appeal by Olari Taal seeking declaration of letters from the Financial Supervision Authority of 24 November 2008 as unlawful. That ended the court dispute between Financial Inspectorate and Olari Taal.
In proceedings regarding granting fund manager EfTEN Capital an activity licence, the Financial Supervision Authority requested in writing additional explanations from both EfTEN Capital and Taal to be certain that Taal’s pending appointment as member of the EfTEN Capital supervisory board was appropriate. Taal was the Chairman of the Management Board of Hoiupank during the so-called Daiwa scandal. To evaluate Taal’s compliance to legal requirements to be member of a governing body of a fund manager, the Financial Supervision Authority deemed it necessary to obtain more information on the details of the said event.
Four months after receiving a letter from the inspectorate, Taal filed an appeal in which he asserted the Financial Supervision Authority’s actions toward him were not lawful. In March 2010, the first-tier court turned down Taal’s appeal in material respect, stated numerous principles necessary in financial supervision for evaluating the suitability of a person, and declared the Financial Supervision Authority’s letter of 24 November 2008 unlawful solely insofar as the presumption of innocence was disregarded due to the unclear wording of the letter.
In April, the second-tier court rejected Taal’s appeal: Tallinn District Court upheld the administrative court ruling in the dispute between Taal and the Financial Supervision Authority.