Investment Management Joint-Stock Company (IPAS) INDEXO has submitted a request to the Finance and Capital Market Commission (FKTK) for a banking licence, as confirmed by IPAS board member Ieva Margeviča.
Sections listed in the application from INDEXO – documents for the foundation of a new bank, lending policy, outsourcing policy, risk management policy and a number of other necessary policies. Documents also list information regarding the new credit institution’s shareholders and candidates.
«This is important, but only the first step towards the start of INDEXO’s bank licencing procedure. We are prepared to commence close cooperation with FKTK and European Central Bank to ensure the licence is provided,» said Valdis Siksnis, IPAS board chairman and one of its founders. INDEXO refrains from giving any predictions as to the period of time it may take to receive the licence, considering how long and complicated the banking licencing procedure is.
Once the licence has been received, INDEXO bank will commence operations. The institution plans to start with private services and then move to corporate services.
For this purpose INDEXO founded a subsidiary IDX1R JSC in December 2022. The new capital company’s base capital is set at EUR 2 million. It will be located in Riga, Elizabetes Street 13-1A. It is reported that IDX1R board will consist of Siksnis. The company’s council will inclde INDEXO bank project manager Tīna Kukka, INDEXO private finances development manager Vladimirs Bolbats and INDEXO co-founder and board member Henriks Karmo.
The composition of the bank’s board and council will be reviewed once a licence has been received. To ensure transparency, INDEXO will list pension activity results and investments necessary to the bank’s creation separately in accounts. It is planned that once the bank has been properly approved, all the necessary employees will be transferred to work at the subsidiary.
As previously reported, this summer INDEXO successfully concluded the initial share offer or IPO. As part of this operation the company attracted investments worth EUR 7.49 million, exceeding demand by approximately EUR 2.5 million. During the IPO procedure investors acquired the pension management company’s shares. It is planned that INDEXO bank will have a subsidiary for pension management. In order to receive a licence of a commercial bank in Latvia, it is necessary to secure approval from the European Central Bank and FKTK.
IPAS INDEXO is an investment management company licenced by the Finance and Capital Market Commission. The company offers management of 2nd and 3rd pension plans in Latvia. The company reports having attracted more than 99 000 clients and more than half a billion euros. The company was founded in 2017 by more than 30 well-known Latvian businessmen and managers «in order to fight for a better financial environment in Latvia». Aside from Siksnis, this group includes Toms Kreicbergs, Svens Dinsdorfs, Valdis Vancovičs, Filips Kļaviņš, Raimonds Slaidiņš and others.
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