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Cobalt Successful for PNB Banka Before Latvia's Constitutional Court

Cobalt Successful for PNB Banka Before Latvia's Constitutional Court

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Cobalt has successfully represented AS PNB Banka before Latvia’s Constitutional Court in a case involving the fee calculation for credit institutions for financing the Financial and Capital Market Commission’s operations.

According to Cobalt, “on 20 February 2020 the Constitutional Court handed down a judgment ... holding that Article 2.11. of the Regulation of 2 December 2018 of the Financial and Capital Market (FCMC) No. 198 ‘Regulation on Determining the Amount of Payments by the Financial and Capital Market Participants for Financing the Financial and Capital Market Commission in 2019 and for Submitting Reports’ does not comply with the principle of equal treatment as enshrined in Article 91 of the Constitution of the Republic of Latvia."

According to Cobalt, "AS PNB Banka applied to the Constitutional Court due to its doubts that the fee level payable by the credit institutions for financing the FCMC’s operations complies with the principle of equal treatment. In determining the amount of the fee level for year 2019, the FCMC increased the fee level for the credit institutions only but not the fee levels for other financial and market participants. This approach was based on the argument by the FCMC that other market participants are unable to cover supervision costs. In the opinion of AS PNB Banka such different treatment lacked a legitimate aim and was not proportionate to the potential legitimate aim."

"The Constitutional Court held that all the financial and capital market participants subject to an obligation to finance the FCMC’s operations are in equal circumstances and that the contested legal norm prescribes [sic] unequal treatment," Cobalt reported. "In verifying whether the FCMC’s Board was entitled to issue the contested legal norm, the Constitutional Court found that the FCMC’s Board was not empowered in a democratic and legitimate way to issue the contested legal norm. Therefore, unequal treatment provided for by the contested legal norm had not been prescribed by law.”

The Cobalt team included Managing Partner Lauris Liepa and Associate Toms Krumins.

Latvian Knowledge Partner

COBALT is closely integrated alliance of top-tier law offices in Estonia, Latvia, Lithuania and Belarus, making us one of the largest law firms in the Baltic market. 

COBALT is a trusted partner for daily matters and complex large-scale transactions and disputes. The firm’s broad spectrum of expertise and established position as the market leader give a comprehensive basis for providing advice on special areas of business law.

We advise top international and regional businesses, financial institutions, state and local governments, and the region’s most promising start-ups. We offer leading-edge solutions in key industry sectors: Consumer Products, Trade & Distribution, Real Estate & Construction, Pharmaceuticals & Healthcare, Energy & Utilities, Communications, Media & Technologies, Financial Services, Transport & Logistics.

COBALT has been named Baltic Law Firm of the Year 6 times. We were recognized as the Most Innovative Law Firm of the Year 2019 in the Baltics at the IFLR European Awards in London. COBALT also won CEE Legal Matters Deal of the Year Award for Estonia, Latvia, and Lithuania, as well as the overall Baltic Deal of the Year, at the 2019 CEE Legal Matters Awards. We have received multiple awards from the Chambers Europe, IFLR, The Lawyer and Mergermarket and we are regularly listed amongst the top performing M&A legal advisors in the Bloomberg, Thomson Reuters and Mergermarket deal tables

More information on Cobalt can be found at www.cobalt.legal

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