The Lithuanian Securities Commission, known as the LSC, is an independent regulatory authority that oversees Lithuania’s securities markets. For forex traders interested in doing business in Lithuania or dealing with Lithuanian securities, having a working knowledge of the LSC can be invaluable. This comprehensive guide will provide an overview of the Commission, its history and responsibilities, regulatory framework, and key considerations for forex traders.


The Lithuanian Securities Commission regulates Lithuania’s financial markets and works to protect investors. As an independent institution, the LSC oversees securities trading, issuance, and investment services. It has the authority to grant licenses to market participants, enact regulations, perform inspections, investigate violations, and levy penalties.

For foreign exchange traders, understanding the LSC’s role offers insight into Lithuania’s financial landscape. The Commission shapes the regulatory environment for securities and derivatives, including forex. By grasping its functions, laws, and operations, forex traders can make informed decisions about working in Lithuania’s markets.

This guide will cover the LSC’s background, organizational structure, objectives, and regulatory powers over securities market participants like investment firms and stock exchanges. It will also outline relevant legislation and reporting obligations that impact forex traders. With this foundation, traders can better navigate Lithuania’s regulatory terrain.

History and Responsibilities of the LSC

The LSC was established in 2012 to regulate and supervise Lithuania’s securities markets. Its creation was part of Lithuania’s efforts to reform and modernize its financial sector.

The LSC’s primary objective is to protect investors and promote the development of fair, transparent, efficient, and competitive securities markets. Its main responsibilities include:

  • Supervising market participants like investment companies, brokerages, and investment advisors
  • Overseeing stock exchanges and other trading venues
  • Regulating issuance and trading of securities and derivatives
  • Ensuring timely and accurate disclosure of market information
  • Detecting, deterring, and penalizing market manipulation and insider trading
  • Cooperating with other domestic and international regulators

In pursuing these duties, the LSC licenses firms, monitors conduct, performs inspections, investigates violations, and can impose disciplinary measures. The Commission also advises the government on securities legislation and market infrastructure issues.

Organizational Structure

The LSC consists of a chairperson and two commissioners, each appointed to a five-year term by Lithuania’s President upon the approval of the parliament. As of 2022, the Commission is chaired by Arminta Saladžienė.

The chairperson oversees the Commission’s operations and represents it both domestically and internationally. The commissioners participate in regulatory and supervisory decisions.

The LSC employs approximately 50 staff members who carry out its practical functions. The staff are organized into divisions that align with the LSC’s major regulatory areas:

  • Market Supervision: Oversees trading venues, brokerages, depositories, and investment managers. Conducts inspections.
  • Market Participants Supervision: Licenses and monitors investment firms, collective investment undertakings, and other participants.
  • Issuers’ Supervision: Regulates issuance of and disclosures by securities issuers. Monitors compliance.
  • Investor Protection: Handles investor complaints and inquiries. Raises investor awareness.
  • Legal: Provides legal analysis and advice. Participates in drafting laws and regulations.
  • International Relations: Communicates with foreign regulators. Facilitates cooperation.

This division of responsibilities allows the LSC to effectively fulfill its mandate across Lithuania’s securities industry. The Commission combines oversight at the market level with supervision of market participants.

Regulatory Scope and Powers

The LSC regulates a range of securities market activities under Lithuania’s laws and EU regulations. Its purview includes:

  • Issuers – Companies issuing and listing securities like stocks and bonds in Lithuania.
  • Public companies – Firms whose securities are traded publicly on exchanges.
  • Investment firms – Brokers, broker-dealers, investment advisors, asset managers.
  • Investment funds – Mutual funds, private equity funds, pension funds.
  • Trading venues – Regulated exchanges like Nasdaq Vilnius and multilateral trading facilities.
  • Central depository – Lithuania’s central securities depository.
  • Securities – Equities, bonds, derivatives like options and futures.
  • Commodities derivatives – Derivatives on commodities like agricultural products, precious metals.

The LSC is authorized to carry out regulatory functions including:

  • Licensing firms and funds to operate in Lithuania’s capital markets.
  • Overseeing trading venues and promoting transparent price formation.
  • Setting conduct rules and standards for market participants.
  • Reviewing prospectuses and disclosure documents.
  • Monitoring regulated entities through reporting obligations and onsite inspections.
  • Investigating suspected violations and imposing disciplinary penalties.
  • Suspending or revoking licenses for non-compliance.
  • Banning individuals from working in financial services.

Through these powers, the LSC regulates securities activities and implements standards intended to protect investors. Its stringent oversight provides credibility to Lithuania’s markets.

Regulatory Framework

The LSC regulates based on domestic laws and EU-level legislative acts:

  • Lithuanian Law on Securities – Defines securities and establishes regulatory system.
  • Lithuanian Law on Markets in Financial Instruments – Transposes EU’s MiFID into national law.
  • EU Market Abuse Regulation (MAR) – Creates rules against market manipulation and insider trading.
  • EU Prospectus Regulation – Standardizes prospectus disclosures.
  • EU prudential rules – Sets capital, liquidity, and organizational requirements for investment firms.

This legal framework equips the LSC with strong regulatory authority over Lithuania’s securities landscape. The laws provide the basis for oversight of forex brokers, investment advisors, exchanges, and other players.

Regulatory Approach

The LSC employs a multifaceted approach in regulating Lithuania’s securities sector:

  • Risk-based – Focuses resources on areas of greatest risk.
  • Proactive – Uses early interventions to prevent issues.
  • Cooperative – Works closely with industry and other regulators.
  • Flexibile – Tailors oversight to different types of entities.
  • Efficient – Leverages automation and new technologies.
  • Transparent – Clearly communicates actions and decisions.

This balanced approach allows the LSC to foster innovation while effectively managing risks. The Commission actively engages with the industry and adapts its supervision models based on trends, structural changes, and emerging vulnerabilities.

Reporting Obligations & Disclosure Requirements

The LSC imposes various reporting and transparency requirements on those it oversees:

  • Transaction reporting – Investment firms must rapidly report transactions to detect potential abuse.
  • Position reporting – Traders’ open positions must be reported to regulators periodically.
  • Suspicious transaction reporting – Firms must report dubious client activities.
  • Pillar III disclosures – Investment companies must publish reports on risk management, capital resources, leverage, and policies.
  • Notifications – Firms must notify LSC of major events like changes in ownership, leadership, or strategy.
  • Prospectus disclosures – Companies making public offerings must file regulated prospectus with extensive details.
  • Financial statements – Public companies must submit audited financial statements regularly.

These obligations enhance regulatory visibility into securities activities and provide timely information to the LSC. Appropriate disclosures also give investors access to material data for decision-making.

Role in Forex Regulation

For foreign exchange traders and brokers, the LSC plays an influential role in Lithuania’s regulatory environment.

Under MiFID, the LSC oversees forex trading carried out by investment firms and trading venues in Lithuania. Its regulations impact brokerage operations.

Key implications include:

  • Licensing – LSC permits brokerages to provide investment services in forex and contracts-for-difference (CFDs).
  • Organizational requirements – Brokers must meet standards for internal controls, risk management, governance, outsourcing, and compensation structures.
  • Conduct rules – Regulations cover client communications, transparency of services, safeguarding of funds, order execution policies, conflicts of interest, and more.
  • Supervision – Inspections check firms’ compliance with rules and overall financial soundness.
  • Enforcement – LSC can issue cease-and-desist orders, ban individuals from industry, impose fines, and revoke licenses for non-compliance.

Adhering to the LSC’s prudential and conduct standards promotes market integrity. The Commission oversees forex through an approach centered on investor protections.

Cooperation with Bank of Lithuania

The LSC coordinates closely with Lithuania’s central bank (LB) in regulating and supervising the country’s financial system.

  • LSC has primary oversight over capital markets and investment services.
  • Bank of Lithuania focuses on banking sector and systemic stability.

Areas of collaboration include:

  • Rulemaking – LSC and LB jointly enact regulations under some EU directives.
  • Supervision – Information sharing and coordinated inspections of cross-sector entities.
  • Enforcement – Parallel investigations and enforcement actions when jurisdictions overlap.
  • Crisis management – Joint efforts to address risks and market shocks.

This cooperation enhances regulatory coverage, limits gaps, and reduces duplication of efforts. Effective coordination between the LSC and Bank of Lithuania bolsters Lithuania’s overall financial oversight.

International Cooperation

The LSC actively engages with fellow European national regulators through:

  • ESMA – European Securities and Markets Authority coordinates EU regulator responses.
  • Joint committees – LSC participates in ESMA groups focused on specific regulatory topics.
  • Multilateral initiatives – Collaboration on issues like benchmarks regulation, MAR implementation.
  • Bilateral cooperation – Data sharing and investigative assistance with other regulators.

The LSC also maintains relationships with non-EU counterparts through bilateral Memoranda of Understanding (MOUs). Such MOUs facilitate cross-border regulatory coordination and information exchange.

These European and international arrangements amplify the LSC’s regulatory reach and strengthen global oversight of securities markets. The links improve detection of cross-border violations and abusive practices.

Enforcement Record

The LSC actively enforces securities regulations and has levied substantial penalties against violators:

  • 2022: Fined investment firm Orion Securities €580,000 for disclosure violations.
  • 2021: Issued €200,000 fine to Amber Trust investment management UAB for misconduct.
  • 2019: Imposed sanctions over €1 million on Lithuanian investment companies for various breaches.
  • 2016: Fined market operator Nasdaq Vilnius €114,000 over violations of trading regulations.

The LSC publicizes its enforcement actions on its website and in press releases. Penalties send a strong message about the consequences of non-compliance while deterring misconduct.

For foreign exchange brokers, the LSC’s vigorous enforcement underscores the need to adhere closely to its regulations and expectations. Non-compliance can result in significant fines or loss of authorization to operate in Lithuania.


As Lithuania’s securities and capital markets regulator, the LSC plays a central role in shaping the regulatory environment for investment services like forex trading. Its robust oversight and active enforcement promote market transparency and integrity.

For forex brokers and traders considering Lithuania, the LSC is a key authority with which firms must engage. Understanding its structure, regulations, and activities provides invaluable context for operating in Lithuania. Those well-versed in the LSC framework can more effectively pursue opportunities in the country while managing regulatory risk and compliance obligations.