ECJ Backs Clients in Dispute with Latvian Banking Regulator
12 May 2023
The European Court of Justice ruled in favor of Aksio Partners' clients against Latvia's Financial and Capital Market Commission.
Clients of Aksio Partners (Unimain & others) have received judgement of the European Court of Justice against Financial and Capital Market Commission of Latvia (the 'FCMC') regarding "connection to Latvia" restrictions which adversely affected our clients.
The ECJ decided that the restrictions on the banking sector, imposed by the FCMC, which prohibit banks from cooperating with persons "who have no connection with the member state of this credit institution" are contrary to the core principles of the European Union - the freedom to provide services, as well as the free movement of capital (unless said restrictions are objective, proportionate and are not excessive).
Latvian lawyers Loze&Partners, who have been acting as the lead legal advisor to the Clients, expressed their belief that this judgment should significantly improve the ability of credit institutions to provide services throughout the European Union.