Alternative Investment Funds And Their Manager Law

Original Language Title: Alternatīvo ieguldījumu fondu un to pārvaldnieku likums

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.vestnesis.lv/op/2013/142.1


The Saeima has adopted and promulgated the following laws of Valstsprezident: alternative investment funds and their Manager law chapter I. General provisions article 1. The terms used in the law, the law is applied in the following terms: 1) of alternative investment funds (hereinafter the Fund), the total investment in the company, which attracted capital from more investors to invest in the above right of investors in accordance with the investment policy. The Fund is mutual fund investment management company within the meaning of the law; 2) — separate fund pays part of the property, consisting of parts made of investments against investments, as well as things that come with that property transactions; 3) alternative investment fund manager, (the Manager) — a legal person whose main activity is the management of the Fund; 4) Fund assets — things that form the Foundation of communion; 5) branch, territorial or otherwise separate Manager Department, which has no legal personality and which provides the services in accordance with the management authority of the Member State issuing the licence; 6) additional remuneration, profit share of the Fund, which the Manager is entitled to receive as compensation for the management of the Fund and which does not include the profit of the Fund Manager by the benefit as income from their investment in the Fund; 7) close relations — two or more person correlation: a) in the form of participation — direct participation, which covers 20 percent of the voting power and over the company's share capital, or controls over such claims or of the voting rights or capital, b), (c) the type of control) to one and the same person by a control; 8) control — a condition in which a person has control of the company, if: (a) that person is a commercial company) decisive impact on participation, (b) that person is a company) a decisive impact on the Group's contract, c) between that person and the company exists any other point "a" or "b" referred to in subparagraph relationships analogous relationships; 9) site: a place where: (a)) registered office manager, b) Fund is a legal address, if it is not registered in the supervisory organ of the Fund or the Fund management authority in the country, c) custodian has its registered office or branch location, address, (d)) the notified entity has its registered office or branch location, address, e) the notified person shall have permanent physical residence address; 10) Member State Fund — a fund that founded the State, or Fund, whose registered office is in a Member State; 11 State Fund Manager), Manager, which has its registered office in a Member State; 12) part of the investment — investment certificates, shares, and the complementary contribution of NUW appear jointly identity document or other document certifying the investor's participation in the Fund or sub-fund of the Fund and of the ensuing rights of participation; 13) units — investment securities certificate attesting to participation in the Fund of fund investors, which is founded as a case under the this law, a sense of article 30; 14) the value of the Fund (hereinafter referred to as the net asset value of the Fund) — the value of assets of the Fund and the difference in the value of liabilities. The Sub-Fund's value is the value of the assets of the Sub-fund and the difference in the value of liabilities; 15) the main Fund-Fund, whose investors have an underlying fund; 16 child Fund Foundation), which meets at least one of the following criteria: (a)) at least 85 percent of the Fund's assets are invested in other parts of the investment of the Fund (b)) at least 85 percent of the Fund's assets are invested in several main parts of the contribution from the funds, whose investment strategies are identical, at least 85 percent c) of the Fund's assets are subject to this point "a" and "b" are not mentioned in the investment risk associated with the main Fund; 17) holding company — the parent company of which is implemented in the long term business with a subsidiary or associate company [the European Commission of 3 November 2008. Regulation No 1126/2008 adopting a number of international accounting standards in accordance with European Parliament and Council Regulation (EC) No 1606/2002, meaning] or by participation in other companies, taking action in its own right, and whose equity securities are listed on a regulated market in a Member State or who is not working for the benefit of investors sale of subsidiaries and associated companies of assets and clearly reflects the following financial reports (annual); 18) Member State of origin of the funds, the Member State in which the Fund is established or the first time you register (if you had several registrations), or, if the Fund is not established in a Member State, the Member State in which the registered office of the Fund; 19) Manager of the home Member State, the Member State in which its registered office is Manager, but a foreign Manager, where the reference Member State, which shall be determined in accordance with article 75 of this law; 20) Manager in the host Member State, the Member State in which Member State Manager manages and distributes the funds of the Member State or Member States, foreign fund investment in parts, but this country is not the Manager of the Member State of origin; 21) a foreign Manager in the host Member State, the Member State in which the foreign Manager manages and distributes the funds Member State Member State or part of a foreign investment fund, but this country is not a foreign Manager in the reference Member State, which shall be determined in accordance with article 75 of this law; 22) the issuer in the Member State of the registered shares of the company whose shares are transferable or comparable securities provide participation in the share capital of the company, are included in the regulated market; 23) authorized representative – physical person who habitually resident in a Member State or a legal person having its registered office in a Member State and whose foreign Manager authorized to represent its interests in relations with public authorities, clients, organizations and foreign Manager business partners in the Member States; 24) leverage funding, any transaction that results in increased it managed the Manager of the Fund's risk level of transactions by borrowing money or securities, or carrying out transactions in financial derivatives, or in any other way; 25) distribution: same or Manager on behalf of the investment part of the initial deployment or offering investors who have their registered office or residence in a Member State; 26) foreign fund — a fund that is not a Member State of the Fund; 27) not included in a regulated market in a Member State of the company-registered Corporation, whose shares (shares) or the equivalent to transferable securities, which provide the Corporation's share capital participation, have not been included in the regulated market; 28) parent company — company, which controls another company; 29) main broker, licensed in a Member State by a credit institution or investment firm, entitled to provide one or more investment services and investment requirement for professional investors, including as a business partner to finance or carry out transactions in financial instruments, as well as settlement and delivery and hold financial instruments a financial instrument issued loans and provide to the customer a customized information system; 30) professional investor: investor, which status corresponds to the professional status of the client or upon his request granted this status manager or the investment service provider in accordance with the law on the financial instruments market arrangements; 31) qualifying holdings — a person or more to the agreement, the Working Party agreed to directly or indirectly acquire holdings, which includes 10 or more percent of the company's share capital or of the voting shares or allows you to significantly affect the company's financial and operational policies; 32) employees ' representatives — persons who have the right to represent the employees in accordance with labor law; 33) subsidiary company: a company that is controlled by another company; 34) group — ten countries with the International Monetary Fund concluded a general agreement for a loan; 35) free capital — the assets belonging to the person that the context of this person's reduced value and the value of the assets, which are considered long-term investments; 36): the European Union or the European economic area; 37) — the foreign country that is not a Member State; 38) Manager: Manager of the official of the Board members and persons who are authorized to manage the Fund, make orders concerning the property of the Foundation or to deal with their manager's name; 39) Manager: Manager of the person concerned and the members of the Council of the Board, officers, shareholders who own 10% or more of the voting shares of the Manager, as well as everything mentioned in this paragraph of natural persons, spouses, parents and children; 40) investment fund — a fund registered under the investment management company law; 41) stress testing — the Analysis Manager to identify and assess the different extreme, potential adverse event or market conditions change, potential impact on the Fund's investment portfolio, or liquidity; 42) of the financial action task force, an international body that determines international standards to combat the crime of money laundering, terrorist financing, weapons of mass destruction proliferation financing and other international financial system integrity threats, as well as to promote legal, regulatory and operational measures for effective implementation. 2. article. The purpose of the law the purpose of the law is to promote the stability of the financial system and development, with the alternative investment fund manager operational risk impact on potential financial system, as well as to ensure an effective cooperation between the supervisory bodies in monitoring and reducing those risks. 3. article. The scope of the law (1) this law, in order to achieve the objectives referred to in article 2, provides: 1) alternative investment fund manager legal status, their operation, disclosure requirements, responsibilities, and monitoring; 2) procedures are performed in Latvia Manager registration and licensing; 3) procedures for government services in Latvia provides other Member or a foreign Manager; 4) foundations and the order in which you perform the registration of the Fund and the contribution of the funds as well as the distribution of parts the persons and the rights, duties and responsibilities, subject to the requirements of this law. (2) the law regulates also the Manager was willing to use the name "European venture capital fund", in so far as the provisions of the regulation of the European Parliament and of the Council of 17 April 2013 Regulation (EU) no 345/2013 for European risk capital funds (hereinafter Regulation No 345/2013), and the Manager was willing to use the name "European Social Fund" of the business, so far as the provisions of the regulation of the European Parliament and of the Council of 17 April 2013 Regulation (EU) no 346/13 of the European Social Fund in the business (hereinafter Regulation No 346/2013). (3) the law shall also determine the order in which the investment firm or a credit institution may take the Fund's contribution to the part of the original release or distribute parts of the investment fund in Latvia. (4) the activities of the Fund, established as a limited partnership or limited liability company, governed by this law and commercial law, in so far as this law provides otherwise. 4. article. Exceptions to the application of the law this law shall not apply to: 1) the holding company; 2) private pension funds; 3) European Central bank, European investment bank, the European Investment Fund, European development finance institutions and bilateral development banks, the World Bank, the International Monetary Fund and similar international organisations, which in the public interest to manage the Fund; 4) national central banks of the Member States; 5) State funded pension scheme managers of funds; 6) employer's employee benefit funds set up accrual schemes; 7) special purpose securitisation structures created, whose only activity is the securitisation in accordance with the European Central bank of 19 December 2008, Regulation (EC) No 24/2009 of the securitisation transactions involved the financial vehicle Corporation statistics on the assets and liabilities article 1, paragraph 2; 8) Manager that manages one or more funds, whose only investors are the same manager or its parent company or subsidiary company or other Manager of the parent company subsidiaries, provided that none of the investors will not fund. Chapter II. Manager operations, registration and licensing article 5. Manager operation (1) Manager is a core activity of the Fund Administration, which includes the following services: 1) the investment management of the Fund; 2) risk management. (2) the Manager may provide the following services: 1) the administration of the Fund, which includes the following activities: (a) the Legal Affairs of the Fund) and the accounting organization, (b)) the provision of information by the fund investor demand, c) values and investment of the Fund share pricing, d) Fund regulatory compliance monitoring, e) the distribution of the income of the Fund, the investment share of emissions (f)) and atpakaļpirkšan, (g) settlement of contractual obligations), h) associated with the Fund's resources in the transaction listing sort the investment of the Fund, i) part of the holding register sorting; 2) distribution of investments; 3) Fund asset management related necessary actions, which include infrastructure management, real estate management, consulting companies on capital structure, industrial strategy and related matters, advice and services relating to mergers and the purchase of the company, as well as other activities related to the Fund, the public and other asset management, in which the Manager has made investments. (3) the Fund can manage the external or internal Manager. (4) the external Manager may manage funds that it has established as a case of togetherness, or Fund, who conceived as a company and for which the Manager is the external Manager appointed by the Fund or the Fund in the name of the authorized person. (5) the internal Manager has the same Foundation, founded as a joint stock company and performing the duties of a Manager. Internal Manager is not allowed to provide the first and second part of the services to another fund. (6) the Manager may not only provide services if it does not take the Manager's operating activities. The Fund's investment management service may not be provided if it is not provided in the risk management service, but risk management may not provide services unless you provide the Fund's investment management service. Manager is not entitled to provide the services referred to in this article. 6. article. Manager business and start-up (1) Latvia Manager established as a corporation. Manager is a financial institution that operates in accordance with this law, directly applicable European Union law, commercial law, other regulations and statutes. (2) internal Manager registration in the commercial register is carried out only after the financial and capital market Commission (hereinafter the Commission) decision to issue licence to the alternative investment fund manager or decision on registration in the commercial register submitted to the Manager's Office. (3) the Manager of the firm include the words ' alternative investment fund manager "or its abbreviation" AIFM ". (4) the company that do not follow this law, the key to your company may not be included in the supplements, which direct or indirect reference to a Manager. (5) in addition to the first part of this article said legislation for a venture capital fund manager who wants to use the name "European venture capital fund", to comply with Regulation No 345/2013, but a manager who wants to use the name "European Social Fund" — the business of Regulation (EC) no 346/13 (6) the Manager may initiate action by the Commission in accordance with the procedure laid down in this Act it has registered or issued the license to the alternative investment fund manager. Member Manager or foreign Manager launches operation in Latvia this law in chapters IX and X. (7) the licence specifies the permitted investment strategies and services and ancillary services, the Manager is entitled to provide, according to article 5 of this law. (8) the Commission shall grant authorisation without a time limit. 7. article. General Manager registration rules (1) the Manager of operations in Latvia is entitled to start after the registration in the Commission, if the Manager Administration and operation of the existing fund assets amounting to satisfy at least one of the following criteria: 1) Manager himself or jointly with the company through which it has delegated the management service or with which it has a close relationship, or in which it has a significant interest, manage the Fund assets (including assets obtained through leverage) funding, which totals do not reach 100 million; 2) Manager himself or jointly with the company through which it has delegated the management service or with which it has a close relationship, or in which it has a significant interest in managing the assets of the funds, which total does not reach 500 million euros, provided that none of the operations of the Fund rules do not provide for the use of leverage financing and investment part atpakaļpirkšan five years from the date of the first investment of the Fund. (2) the administration of the Fund for the calculation of the existing assets of the order by the European Commission on 19 December 2012 the delegated Regulation (EU) no 231/2013, supplementing the directive of the European Parliament and of the Council in 2011/61/EU for exemptions, the General operating conditions, the proportion of the liability for the depositary, transparency and supervision (hereinafter Regulation No 231/2013). 8. article. Manager registration documents (1) a registration application to the Commission to include information about the Manager of the company, legal address, registration number and place of registration, as well as the following information and documents: 1) with information about the soundness of the Fund Manager's investment strategy; 2) this law article 10 of the second paragraph of point 1 and point 2 "a" and "b" in subparagraph, third and seventh, part information and documents; 3) Regulation No 231/2013 the information specified in article 5; 4) the evaluation procedures of the investor who is not a professional investor, including at least article 41 of this law in the eighth the proof referred to in part and order that the Manager make sure on free capital adequacy for the investment fund. (2) Commission decision on the registration or refusal to register the manager shall adopt, within three months after receiving all this statutory decision necessary documents. (3) the Commission decision on the refusal to register the Manager accepted if you do not meet this law, article 17 of the fifth part. (4) the registered manager shall immediately inform the Commission of the amendment to the first part of this article and in article 1 of this law, article 10 paragraph 2 second subparagraph "a" and "b" in the third paragraph, and point the specified information and documents, if these amended before adoption of the decision on registration. If the amended registration, after Manager Commission on amendments to the information and the documents shall inform within 10 working days. 9. article. Registered manager action rules (1) the Manager may be established to distribute the investment part of the professional investors, as well as to provide fund management services and ancillary services. (2) the Registered Manager manages the investment part of the Fund if the Fund rules do not provide for the use of leverage financing and investment part atpakaļpirkšan five years from the date of the first investment fund to be distributed to the investor who is not a professional investor, if the investor provides this Act article 41 the proof referred to in eighth and the investor share purchase minimum amount in a given Fund is 20 000 euro or more. (3) if the Manager's existing fund administration and asset reaches or exceeds about one article 7 of this law the criteria referred to in the first subparagraph, the Manager, within 30 days after the onset of non-compliance shall submit to the Commission an application to receive a license to the alternative investment fund manager. (4) the Manager, which manages the Fund and the amount of assets correspond to one of this law, article 7, first paragraph, this criterion has the right not to submit to the Commission an application for the registration of a Manager if it submitted an application to receive a license to the alternative investment fund manager was in accordance with this Act and the regulations No. 231/2013. (5) the registered manager is bound by this law, article 15, article 20 of the first, second and fourth parts, 21, article 29, article 61 of the first, second, fifth, sixth, seventh and eighth part, 64, 65, 81, 82, 83, 84, 85 and article IV, V, and VII, chapter XIV. (6) the Commission shall implement the registered manager supervision until the day the registered manager is fully passed the obligations related to the Fund's investors and other persons. (7) Member State registered Manager redistribute it manages the investment of the Fund of the Member State of the parts of the professional investors in Latvia, where the Fund rules do not provide for the use of leverage financing and investment part atpakaļpirkšan five years from the date of the first contribution to the Fund and the manager shall submit to the Commission the following documents: 1) with a request to allow the application to distribute it in the management of the Fund of the Member State of the existing parts of the investment professional investors in Latvia; 2) Manager management authority of the Member State of origin issued assurances that the Manager in the laws of a Member State in accordance with the procedure laid down by the Member State is established and is subject to the supervisory authority in the Member State referred to in the monitoring requirements laid down; 3) Member State of origin of the Foundation supervisory authority issued assurances that the Foundation laws of a Member State in accordance with the procedure laid down by the Member State is established and is subject to the supervisory authority in the Member State referred to in the monitoring requirements laid down; 4) addressed to the Manager of the Commission and the Member State of origin of the Foundation supervisory authority of a statement that supervisory authorities cooperate with the Commission and the Fund Manager monitoring and information exchange; 5) contact information, responsible for the distribution of investments in Latvia and authorized to represent the interests of the Fund and Manager in relations with public authorities, investors and third parties in Latvia; 6) part of the fixed assets distribution agreement; 7. Article 66 of this law) the third paragraph of the mentioned documents. (8) the seventh subparagraph of this article, 2., 3., 4. and 7. the documents referred to in paragraph 1 shall be prepared in the language of international finance. (9) registered in a Member State may start the Fund Manager's investment in parts distribution from the date of notification of the Commission decision. (10) registered in a Member State Manager within 10 working days, inform the Commission of changes to this article, the information referred to in the seventh. (11) Member State registered manager who wants to distribute it in the management of the Fund of the Member State of the existing parts of the investment professional investors in Latvia, where the Fund rules do not provide for the use of leverage financing and investment part atpakaļpirkšan five years from the date of the first contribution to the Fund, is bound by article 29 of this law, article 81 of the first, second, third and fourth subparagraphs, article 81 of the fifth subparagraph of point 12, article 81 of the sixth and the seventh part 82. Article IV, sixth, fifth, eighth and ninth and 90 and 91, the conditions of article. 10. article. Licence documents and news (1) in order to receive a license, the manager shall submit to the Commission an application for the licence, accompanied by the other documents referred to in this article. External Manager application also includes information about the company, legal address, registration number and place of registration. (2) The Manager and its shareholders (participants) the following documents shall be submitted to the Commission: 1) the document proving the payment of the initial capital; 2) Manager shareholders (participants) and the list of shareholders (participants): a) for natural persons — personal identification data [name (Latvian language and original language), year of birth and the date the personal code (if any)], the issue of identity document, the document number, validity period, (b)) for legal persons – firms, legal address, registration number and location. Foreign legal entities registered in the submit also notarized copies of registration documents, c) documents which certify that the Manager shareholders (participants) who have a significant interest in, enough to finance manager (indicating the origin of the financial resources) so that they can make an investment manager capital, d) news about the Manager shareholders (participants) — legal persons — holders (up to a natural person, which provides the message according to the "a" section of this point) if the shareholders (participants) have significant participation in the Manager. (3) the manager shall submit to the Commission, officials of the following documents and particulars: 1) statement, which populates each officer. The notification shall state the following information: a) Manager and position the company to which the officer candidates, (b)) the first name, last name (Latvian language and original language), year of birth and date, ID number (if applicable) and citizenship, c) education (degree), d) qualifications, e) or have had a criminal record, f) or have been deprived of the right to carry out commercial activities, (g)) previous jobs in the last 10 years and a brief description of the job responsibilities; 2) of formal education. (4) the third part of this article, paragraph 1 of the statement of the accuracy of the information provided to certify a person for which the statement has been prepared, as well as Chairman of the Board of managers. (5) the manager shall be submitted to the Commission a list of the interested parties. List each person's name and surname, person code (if any), education, position, which it acquired in the last five years, and the job description Manager and the relevant parties concerned the terms of the contracts. Legal person indicates a company registration number and location, the governing body, and the members shall submit to the Commission the report of the last year. (6) The Manager was the Organization of the Commission shall submit the following documents: 1) a description of the organisational structure with clear responsibilities and powers of officials, as well as clearly defined and divided into departments for Manager tasks and responsibilities of Heads of departments. If the Manager plans to establish a branch, the Commission also affiliate organizational structure and responsibilities of the heads of the branches; 2) management information system; 3) the accounting policies and accounting principles of the Organization; 4) risk management policy; 5) information system protection rules, including the contribution of a Fund share registry and another Manager in the management of existing financial instruments accounting database protection rules; 6) unusual and suspicious financial transactions, a description of the identification procedure; 7) remuneration policy and its application; 8) delegation and subdelegation procedure; 9) prevention of conflicts of interest; 10) a description of the risk management of liquidity; 11) application and complaint of investors (the dispute) review description of the procedure. (7) The manager shall submit to the Commission, the planned activities for at least the next three years to develop and the Manager shareholders (participants) the meeting approved the action plan, which reflects the advanced Manager business strategy, financial projections, including the review of projects that reflect the financial position at least further three years of operation at the end of the financial performance report for the three subsequent years of operation, the capital adequacy calculation project and the estimated cost of the permanent annual Description, market research, as well as other information, giving a true and fair view of the Manager of the planned activities. (8) for each fund manager wants to manage, the Commission shall submit the following documents and particulars: 1) for information on the investment strategy and the types of funds that funds made or plan to make an investment, if the Fund is a Fund of funds; 2) if intended to leverage financing — policy lever funds Manager, including information about the circumstances in which the Fund may be used to leverage funding, allowed to leverage funding types and sources and related risks, leverage funding restrictions and get security and asset reuse, leverage funding conditions the maximum amount which the Manager is entitled to use the name of the Fund, as well as the following about the selection procedure and limit; 3) information on risk profile and other activities of the Fund representative signs, including the information on Member States or foreign countries in which the Fund operates or intends to operate; 4 information about the main Fund), if the Fund is a sub fund; 5) each Fund's founding document; 6) information about the custodian and the custodian agreement; 7) Fund management contract between the Fund and the Manager; 8 article 58 of this law), first and second parts of that information. (9) If a licence application to the alternative investment fund manager shall submit to the Commission for the operation of the licensed investment management company, it shall submit only the information and news that is not available to the Commission. (10) If, before a decision on the issue of the licence, the information provided to the Commission are changed or the documents are amended, the Manager will be obliged to submit the new information to the Commission or the full text of the document with the amendments. (11) upon receipt of the License Manager is obliged immediately to inform the Commission in writing of any amendments and additions to the information and documents submitted. Amendments shall enter into force, if the Commission one month from the date of receipt of the application and the attached documents, no reasoned objections. If the document referred to the need for additional testing or need additional information, the Commission is entitled to extend the time limit for the examination of application for one month written notification to the manager about it. (12) the Commission shall consult the supervisory authorities of the Member State concerned before the issue of such licence Manager: 1) which is registered in the Member State concerned of a credit institution, insurance company, investment company, an investment management company or the investment fund manager of the subsidiary; 2) which is the subsidiary of the parent company, whose other subsidiaries are registered in the Member State concerned, a credit institution, insurance company, investment company, the investment management company or the Investment Fund Manager; 3) controlled by the natural or legal person who controls another credit institution established in the Member State concerned, insurance company, investment company, the investment management company or the Investment Fund Manager. (13) the Commission, before licences are issued, as well as a licensed Manager monitoring from a management authority of the Member State concerned shall require and evaluate information about the Manager shareholders (participants) and their manager's reputation and experience of the officials involved in the other company of the group, which will be included in the Manager. 11. article. Requirements for the Manager shareholders (participants) (1) The Manager shareholders (participants) may only be a person: 1) whose identity can be verified; 2) which has an impeccable reputation; 3) whose financial situation is stable and it is well documented. (2) the examination of a person's reputation and financial standing, the Commission referred to in the first paragraph, the criminal identity and documents about the financial position, which allows you to verify the free capital adequacy capital contribution made to the Manager, as well as the fact that the funds invested are not obtained unusual or suspicious transactions. Free capital shall not be taken into account if the person has a credit institution or insurance company. (3) the Manager shareholders (members) can not be a physical person and legal entity shareholders (participants) and owners (the real beneficiaries), which may be subject to this law, article 15 of part 1, 2 or 4 the limits laid down in paragraph. (4) the Commission shall have the right to inspect the Manager shareholders (members), but if the Manager shareholders (participants) are legal persons, of their shareholders (participants) and owners (the real beneficiaries) to obtain information about the owner (the true beneficiaries) — natural persons. These persons are obliged to provide the Commission with this information if it is not available in public registers, of which the Commission is entitled to receive such information. 12. article. The acquisition of a qualifying holding, the reduction and termination Manager (1) substantial involvement Manager may acquire person meeting the Manager shareholders (participants), as well as the seventh part of this article, the criteria listed in. (2) a Person who wishes to acquire a qualifying holding Manager, it shall notify the Commission in writing in advance. The notification shall specify the extent of the participation percentage of the Manager's share capital or voting shares. The notification shall be accompanied by regulations of the Commission rules provide information needed to assess a person's compliance with the seventh part of this article, the criteria listed in. The communication of the information to be added to the list shall be published on the Commission's Web site created. (3) the Commission has the right to request information about people who claim to be substantial participation (essential participation actually graduates or suspected of such acquisition turamaj persons), including the legal (registered) owners (the real beneficiaries), the natural persons, in order to assess their compliance with the seventh part of this article, the criteria listed in. (4) If a person wishes to increase qualifying holding Manager, reaching or exceeding 20, 33 or 50 per cent of the share capital or the Manager voting shares or Manager by becoming a subsidiary of the person, the person concerned on the previously notified in writing to the Commission. The notification shall specify the extent of the participation percentage of the Manager's share capital or voting shares. The notification shall be accompanied by regulations of the Commission rules provide information needed to assess a person's compliance with the seventh part of this article, the criteria listed in. The communication of the information to be added to the list shall be published on the Commission's Web site created. (5) the Commission shall, within two working days from the day of receipt of the second or fourth part of the Declaration, or two working days after the Commission requested additional information in writing, inform that person of the notice or additional information is received and the date of the end of the assessment period. (6) the Commission, in the seventh paragraph of this article within the assessment period, but not later than the fiftieth working day of the assessment period, has the right to request additional information on the persons referred to in this article in order to assess their compliance with the seventh part of this article, the criteria listed in. (7) the Commission shall, not later than 60 working days from the date on which the person sent to in the fifth subparagraph of this article, that information about the receipt of the notification, shall assess the person's free capital adequacy, stability and the proposed acquisition of the financial justifications to ensure its sustainable and careful Manager management, in which the acquisition is proposed, and take into account the person's potential impact on the management and operation of the Manager, as well as the following criteria : 1) or person complies with the Manager shareholders (participants), to the requirements and if it has a perfect reputation; 2) or the person who, by obtaining the planned participation, lead manager is impeccable reputation and experience; 3) or the person's financial situation is stable, in particular in connection with the Manager in which you have made or planned economic activity; 4) or Manager will ensure and fulfill this law and other laws in certain regulatory requirements, or company and group structure, which the Manager will, without prejudice to the Commission's ability to carry out its statutory supervisory functions, to ensure an efficient exchange of information between the Manager and supervisory bodies to determine the Manager Observatory monitoring the distribution of powers; 5) or unfounded suspicions that in connection with the proposed acquisition has been made money laundering or terrorist financing, whether these attempts, or the planned acquisition could increase such risk. (8) requiring the sixth part of this article that additional information, the Commission shall have the right to stop once the evaluation period until this information is received, but not more than 20 working days. The Commission has the right to extend the assessment period referred to break up to 30 working days if the person wishing to obtain, has acquired, wants to increase the qualifying holding or has increased Manager are not subject to the insurance companies, reinsurance companies, credit institutions, investment management company, the investment manager or brokerage firm supervision or that person's establishment in that Member State. If the Commission has stopped the seventh part of this article 60 working days specified in the assessment period, break time is excluded from the assessment period. (9) the Commission is the seventh part of this article, the time limit referred to in the decision to prohibit a person to acquire or increase qualifying shareholdings in the Manager, if: 1) person does not meet the criteria referred to in the seventh; 2) a person shall not provide, or refuses to provide the Commission with the information specified in this Act or in the additional information requested by the Commission; 3) from the person as a result of circumstances it is not possible to provide the information specified in this Act or in the additional information requested by the Commission. (10) the Commission shall, within two working days, subject to the seventh part of the assessment period, after the ninth part of this article, the adoption of the decision referred to in the send it to the person to whom the prohibition to acquire or increase qualifying shareholdings in the Manager. Where the Commission, on the seventh of this article within the time limit referred to in part does not send the person a motivated decision prohibiting it to acquire or increase qualifying shareholdings in the Manager, it is considered that the Commission agrees with this person significant acquisition or building manager. (11) in the seventh part of this article, paragraph 3 of the criteria is not applicable to legal persons, if the shares are included in Latvia or another Member State of the regulated market or in a regulated market, which is the organizer of the international stock exchange Federation full member, and the legal entity shall provide the Commission with details of their shareholders who have a significant interest in it. (12) If the Commission has accepted that a person acquires or increases a substantial participation in the Manager, this person is your qualifying holding Manager obtains or increase no later than six months from the date when sent in the fifth subparagraph of this article, the notification of the written confirmation or further information. If, on expiry of that period, the person has not been acquired or increased a substantial participation in the Commission's acceptance Manager, its significant acquisition or building manager terminates. By person motivated request, the Commission may in writing to decide on the extension of that period. (13) the examination of the second and fourth of these notifications, the Commission shall consult with the Member State concerned, if the supervisory authorities of the Member States of the proposed acquirer insurer, reinsurer, is registered in a Member State by a credit institution, investment management companies, alternative investment fund manager, investment brokerage company or insurer, reinsurer, a Member State of credit institutions established in a Member State, investment management companies, alternative investment fund manager or investment brokerage company's parent company or person that the insurer, by the Member State Member State Member State the reinsurers, credit institution, investment management companies, alternative investment fund manager or investment brokerage company, and if, the person acquiring or increasing the participation of the relevant Manager becomes the person's subsidiary or come under its control. (14) the evaluation of the stability of the financial situation of the person, the requirements for the free capital adequacy is not applicable to credit institutions and insurance companies. (15) if the qualifying holding acquired the personal impact on or may pose a threat to the Manager's Manager, financially sound, prudent and regulations according to management, the Commission should have the right to request to immediately interrupt such effects, change the Manager or officer of the Council, the composition of the person concerned or to prohibit the use of all or part of its voting rights. (16) a Person who wishes to terminate the parent control (decisive) over Commission licensed Manager to reduce the amount of qualifying holding Manager below 20, 33 or 50 per cent limit or terminate the participation of the relevant Manager, before the disposal of shares (share) shall notify in writing to the Commission. The notification shall specify the extent of a person's participation in the Manager, it will be after the reduction of participation. 13. article. Not just for participation in determining the person's participation obtained indirectly about Manager, take account of the relevant persons (referred to in this article, the person in question) the following Manager for voting rights: 1) voting rights which are entitled to use a third party to which the person concerned has entered into an agreement, imposing it on the obligation to reconcile the exercise of voting rights and long-term policy for the management of the Manager; 2) voting rights which are entitled to use third parties, in accordance with the agreement concluded with the person concerned and provide for the temporary transfer of the voting rights in question; 3) voting rights arising from the shares (shares) that a particular person has received as collateral if it can use the voting rights and has expressed its intention to use them; 4) voting rights held by a person is entitled to use the unlimited period; 5) voting rights which are entitled to use the specific control of the person or company in which such a company may be used in accordance with paragraph 1, 2, 3 and 4; 6) voting rights resulting from the specific person holding the transferred shares (parts) and it can be used at its discretion in the absence of specific instructions; 7) voting rights resulting from the third person and the persons concerned the right to shares held (shares); 8) voting rights held by a person as trustee may be implemented when it is entitled to exercise the voting rights at its discretion in the absence of specific instructions; 9) voting rights resulting from any other indirect way the persons concerned acquired the shares (the shares). 14. article. The consequences of not reporting (1) If a person is suspected of a significant acquisition Manager, fail or refuse to provide the article 12 of this law the information referred to in the third paragraph, and its participation in general cover 10 or more percent of the share capital or voting Manager, number of shares, it can not use all the voting rights of the shares owned by himself. The Commission shall, without delay, shall inform the relevant shareholders (participants) and Manager. (2) If a person, without the ban, the Commission acquires or increases a substantial participation, it does not have the right to use all of the shares belonging to it (part), but the voting rights of shareholders (participants) meeting decisions taken from this stock (share) to vote, is not valid from the moment of their adoption and on the basis of the decision not to ask the commercial register records and other public records. 15. article. Claims Manager officials (1) officials of the Manager may be a person who meets the following requirements: 1) it is sufficiently competent in the area will be responsible; 2) has a higher education and not less than three years of relevant professional experience; 3) it has a perfect reputation; 4 it is not deprived of the right to) do business. (2) The Manager of the Board shall be a person who is competent in matters of financial management and meet the first part of paragraph 3 and 4. (3) a Person may not be for officials in the following cases: 1) it is penalized for intentional criminal offence (regardless of delete or remove a criminal record); 2) it is called a criminally liable for intentional criminal offence, even if the criminal case against a person on the basis of reabilitējoš not been terminated; 3) it stated false information about themselves, submit to the Commission documents to get the License Manager action or other action in the financial and capital markets; 4) it is assumed the Board or Board members on duty manager or other financial institution, which was declared legal persons the insolvency process at a time when the person concerned complied with those obligations, or it is assumed the Board or Board members in the company of other duties and negligence or deliberately led the company to bankruptcy. (4) the manager shall ensure that at least two officials of the competent administrations of the existing designated investment fund strategy. These officials must manage multiple single Manager only manages the funds. (5) the manager shall ensure that the minimum number of members of the Board of managers shall be three. (6) the Manager of the administrative organ is obliged to own or at the request of the Commission, to immediately withdraw from the post of Manager of officials, if they do not meet the requirements of this law. (7) the evaluation of the officials and managers of the members of the Council, the Commission shall take into account the information provided in the notice of the persons, from previous jobs in the feedback received and other information about their previous professional experience. 16. article. Manager capital (1) the initial capital shall be determined by the European Parliament and of the Council of 26 June 2013 Regulation No. 575/2013 for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (hereinafter Regulation No 575/2013). (2) internal Manager initial capital of at least eur 300 000. (3) the external Manager minimum initial capital of at least 125 000 euro. (4) if the Manager Administration of existing investment portfolio of the Fund more than 250 million euro, Manager provides additional own funds, the amount of which is 0.02 per cent of the amount by which the value of the resources management exceeds 250 million. The requirements set out in this part shall not apply to Manager, equity capital to 10 million or more. (5) the Manager equity compliance with requirements of this law, for the administration of the existing fund investment portfolios managed by the Fund Manager believes the assets, including assets of funds managed services it delegated in accordance with article 28 of this law, but not including fund assets, which it received in the administration of the other Manager. (6) equity and calculation procedures laid down by Regulation No 575/2013 (7) Manager equity capital shall not be less than the higher of the following values: 1) than the minimum initial capital and pursuant to the fourth paragraph of this article, the requirements estimated additional amount of own funds; 2) about 25 percent from the previous full year total of fixed costs. (8) the standing costs (costs that remain relatively constant regardless of the amount of the Business Manager) totals are determined based on the Manager's last audited annual report. If since the preceding accounting manager in significant business change manager by the conversion of fixed costs. Business Manager, which has not made a full review of the year, the total amount of fixed costs shall be determined on the basis of the business plan. (9) Manager who received permission from the Commission, may provide up to 50 percent of the fourth paragraph of this article, that additional equity by the same amount of guarantees issued by the credit institution: 1), which received the license for the operation of the credit institution in a Member State or the Organisation for economic cooperation and development in a Member State, which is part of a group of ten; 2) registered in a Member State of an insurance undertaking or a branch of a foreign insurer, which has received authorization for the taking. (10) with the Manager was related to the risk of possible PII cover Manager follow one of the following requirements: 1) provides additional own funds, the amount of which is insufficient to cover the possible professional liability risks arising from Manager professional negligence; 2) insure your professional indemnity, which is enough to cover the possible professional liability risks arising from Manager professional negligence. (11) the manager shall ensure that the own funds and additional own funds to cover the required funds are invested in liquid assets. On liquid assets considered unencumbered funds — money in short-term deposits and solvent credit institutions, as well as investments in financial instruments, if they have a permanent, unlimited market and can be sold in a short time without significant loss or use as collateral to receive loans. (12) the risks, which are covered by the additional equity capital or professional indemnity insurance, the additional amount of own funds, as well as the requirements for professional indemnity insurance laid down by Regulation No 231/13 (13) this article the tenth, eleventh and twelfth part requirements extend to the manager who is an investment management company. (14) the Registered capital, the Manager of the original capital of the elements shall not be less than 15 000 euro: 1) provided that the administration of the Fund rules do not provide for the use of leverage financing and investment part atpakaļpirkšan five years from the date of the first contribution to the Fund; 2) the greater of the following values: the minimum capital laid down in Law or by 25 percent from the previous year of full permanent cost totals if it manages the operations of the Fund rules provide leverage funding and rights of investors to sell back part of the investment within five years from the date of the first investment of the Fund. Article 17. License issue (1) the Commission's decision on the issue of the licence shall be adopted within three months after receiving all this statutory decision necessary documents. (2) if the document referred to the need for additional testing or additional information, the Commission is entitled to extend the time limit for the examination of application for three months notice in writing to the Manager. (3) when the Commission has evaluated the Manager shareholders (participants) in compliance with the requirements of this law and the information contained in this law article 10 in the seventh and eighth in the documents, that it is entitled to impose on the licence Manager operational conditions. (4) the Commission shall issue the license within 10 working days after the decision is taken on the issue of the licence. (5) the Commission decides not to issue a licence if: 1) through Manager have complied with this Act and other legislation; 2) Manager officials do not meet the requirements of this law; 3) Manager initial capital and equity does not meet the requirements of this law; 4) Manager's close relationship with third parties or may pose a threat to the financial stability or prejudice the right of the Commission to carry out this statutory supervisory functions; 5) foreign laws and other regulations that apply to persons who have a close relationship with the Manager, prejudice the right of the Commission to carry out this statutory supervisory functions; 6) it is not possible to ascertain the identity, reputation and stability of the financial situation, which the Manager have a significant interest; 7), the Commission finds that the financial resources invested in equity manager in unusual or suspicious financial transactions or not documented proven this financial legal mining; 8) Manager management and legal address is in Latvia; 9) Manager shareholders with qualifying holdings of shares belonging to them voting rights and it lasts more than six months. 18. article. The provision of ancillary services (1), if the manager wants to provide new services or to opt out of any services, it shall submit to the Commission the appropriate application. (2) if the manager wants to start a new service enhancement, it simultaneously with the submission to the Commission: 1) supplements the action plan; 2) amendments to the Manager of the internal schedules that are necessary to ensure the provision of ancillary services in accordance with the requirements of the law. (3) the decision on the authorisation to provide ancillary services Commission shall adopt within 15 working days after all documents referred to in this law. 19. article. License renewal and reuse (1) If there is a change in Manager firm, re-register the Commission license. (2) the Manager application on registration of the licence shall be submitted to the Commission within seven working days after the renewal of the commercial register of the company. (3) the Commission should re-register your license within seven working days after the receipt of the application. (4) where the licence has been lost, the manager shall submit to the Commission without delay the application for the licence again. (5) the Commission shall issue the license within seven working days after the receipt of the application. 20. article. Withdrawal of license (1) the Commission shall have the right, by a reasoned decision to revoke the license issued to the managers in the following cases: 1) Manager has provided to the Commission or publicly distributed a false statements; 2) Manager capital does not meet the requirements of this law; 3) systematically violates this law, the Manager, directly applicable European Union legislation and the Commission's the provisions of the regulations; 4) Manager was contrary to the interests of fund investors; 5) Manager, 12 months after the licence has not started this law allowed; 6) Manager was ended after a court ruling; 7) Manager has been declared insolvency of the legal person; 8) Manager shall submit to the Commission an application for the withdrawal of the licence; 9) Manager is reorganized or liquidated; 10) Manager within six months of the termination of the operating activities are not resumed in the law allowed. (2) the decision on the withdrawal of the licence, the Commission shall notify the Manager in writing within three working days after the decision. (3) the withdrawal of the licence a licensed Manager in Latvia where a branch operating in the territory of a Member State, the Commission shall immediately inform the management authority of the Member State concerned. (4) the Commission shall implement the Manager monitoring until the Manager has completely passed the obligations to the Fund's investors and other persons. (5) the Commission shall on a quarterly basis, inform the European Securities and markets authority for licences issued and withdrawn. 21. article. Reorganization and liquidation of a Manager (1) Manager, reorganise and terminate in accordance with commercial law. Manager 10 days shall inform the Commission of the reorganisation or winding-up decision making. (2) the Manager may not be completed before its liquidation, has not fulfilled its obligations to the administration of existing funds. Chapter III. Manager operational provisions article 22. General requirements for (1) the transaction manager Manager licences issued during the follow and comply with the following requirements: 1) ensure compliance with the activities of the Fund Manager and regulatory requirements in accordance with this law, directly applicable European Union legislation and the regulations of the Commission; 2) providing fund administration services, acting as an honest, careful and thorough landlord and ensures that services are provided with due professionalism and care Fund and the interest of investors without compromising financial market stability and integrity; 3) take all necessary measures to identify and prevent conflicts of interest that may arise during the provision of services, and, if it is not possible to prevent, ensure management, subject to the Fund and its investors ' interests, as well as equal treatment for managed funds; 4) provide equal and fair treatment to investors of the Fund, any fund investor interests in assessing higher than other fund investors ' interests, unless such difference in treatment, not provided for in the articles of incorporation of the Fund or the Fund rules. (2) organizing their activities Manager: 1) provides the scope and specifics of the appropriate personnel and technological resources, as well as develop and effectively apply the operation requires procedures; 2) provides it services management provided adequate accounting and administrative procedures, establishing an electronic data storage, protection and control mechanism, to be able to reconstruct the Fund transactions undertaken by their origin, the parties to the transaction, the nature of the transaction, the time and place, as well as monitor compliance with the Fund's investment activities of the Fund rules and the requirements of this law; 3) business justification documents for 10 years and provides the statutory requirements relating to the justification of document filling; 4) follow the Manager was designed to provide procedures, including procedures for personal transactions to Regulation No 231/2013 or the meaning transactions on own account manager and business with the investment of the Fund. (3) the Manager and organizational requirements of the General principles set out in Regulation No 231/13 Article 23. Conflict of interest (1) the manager shall take all necessary measures to minimize the possibility of conflicts of interest arise between: 1) Manager, its officers, employees or the person who controls the Manager, and the Manager or fund managed by investors; 2) Fund or its investors and other Fund or its investors. (2) if the Manager on behalf of the Fund use the main brokerage services, that the contract for the provision of services lays down special rules for the transfer of the Fund's assets in holding the main broker and re-use these assets so that these provisions do not conflict with the articles of incorporation of the Fund and the Fund rules. The manager shall inform the custodian for the Fund Manager and major broker between the contract. (3) before the start of the service provision Fund Manager pursuant to Regulation No 231/2013 established procedure, inform the investors of the Fund: 1) Manager activities that may result in other provisions of this article not mentioned in the first paragraph of the relevant conflicts of interest; 2) conflict of interest the nature and causes of conflicts of interest, provided, if prevention measures after the Manager's point of view, is not sufficient to prevent possible harm to the interests of investors. (4) the types of conflicts of interest and manager responsibilities conflict of interest in the management and monitoring of the identification, determines the Regulation No. 231/13 Article 24. (1) the remuneration policy Manager for those officials or staff whose professional activities have a material impact on the it Administration Manager or the Fund's risk profile, ensure remuneration policies and practices that meet the prudent and effective risk management and promote it, as well as ensure that remuneration policies and practices that encourage Manager Administration of the existing risk profile of the Fund and the Fund's operational rules inappropriate risk-taking. (2) the Commission shall lay down the requirements for the remuneration policy and practice in relation to those officials or staff whose professional activities have a material impact on the it Administration Manager or the Fund's risk profile. 25. article. Risk management (1) to ensure that all with the Fund's investment strategy and associated activity in the existing or potential risk identification, measurement, management and monitoring, the Manager creates a risk management system. In assessing the creditworthiness of the assets of the Fund Manager does not use the European Parliament and of the Council of 9 September 2009 in Regulation (EC) No 1060/2009 on credit rating agencies that the external credit assessment institutions (rating agency) provided the rating of the motor as well as using it as your only measure of credit risk evaluation. (2) the Manager on a regular basis, but no less than annually evaluates the risk management system and the effectiveness of the measures taken and the lack of detected failures. (3) the manager shall ensure that the risk control function is the organizational and functional separation of the Manager was that it controls. If the Manager intends to derogate from this requirement, it shall submit to the Commission the rationale that the risk control function enables effective risk management, and documents showing that the Manager and introduced control procedures in the existing or potential conflict of interest situation prevention provides independent risk management. (4) the Manager shall respect the due diligence when investing on behalf of the Fund pursuant to the Fund rules of operation and the investment strategy for the described purposes as well as the Fund's risk profile, and ensure that proper diligence process complies with the specifics of the operations of the Fund have been documented and are regularly reviewed. (5) the manager shall ensure that all with the Fund's investment risks and their impact on the overall investment portfolio of the Fund for the identification, measurement, management and monitoring, including the nature of the operations of the Fund according to the stress test. (6) the manager shall ensure that each of its existing fund management risk profile matches the level of the Fund investment portfolio structure, the rules of operation of the Fund, described the investment strategy and objectives. (7) the Manager for each existing fund the Administration determines the maximum leverage funding, which the manager shall have the right to take on behalf of the Fund, as well as the maximum amount that the Fund has allowed reuse in relation to leverage finance transactions guarantee or security received, taking into account at least the following criteria and considerations: 1) Fund; 2 the investment strategy of the Fund); 3) administration of the existing Fund to leverage sources of funding; 4) link or a business relationship with other financial service providers or business partners, which can lead to systemic risk; 5) need to control the amount of exposure to each counterparty; 6) leverage funding the securities; 7) assets and liabilities for the pointer; 8) Manager activities and types of markets in which it operates on behalf of the Fund managed. (8) the requirements for the risk management Regulation No. 231/13 article 26. Liquidity management (1) the Manager of each Fund to the management of the operational specifics of it creates the appropriate liquidity management system and develop appropriate procedures to ensure the Fund's liquidity risk monitoring and compliance of investment liquidity of the Fund implies commitments. (2) the manager shall regularly (including emergency liquidity) stress testing to evaluate and monitor the Fund's liquidity risk. (3) the manager shall ensure that each of its existing fund management investment strategy, investment liquidity profile and part of the atpakaļpirkšan policy is mutually agreed. (4) the first, second and third paragraphs do not apply to closed funds that do not use leverage. (5) the requirements for the management of liquidity of the Fund set out in Regulation No 231/13 article 27. Evaluation of the Fund's assets (1) the manager shall ensure that each of its administration to an existing Fund established in Latvia are developed investment specifics of appropriate procedures to allow a correct and objective assessment of the Fund's assets in accordance with this law, the provisions of Commission regulations and operational rules of the Fund. (2) the Manager, which manages the Fund is established in Latvia, the Foundation established in the legislation or the rules of operation of the Fund, evaluating assets and calculating the Fund's net asset value per share of the investment. (3) the order in which weights assets and calculating the Fund's net asset value per share of the Investment Fund's activities. (4) the Fund's net asset value per share of investment is one part of the investment in fixed claims. Part of the value of the investment is composed of the value of the fund divided by the issued but not redeemed the investment portion of the number. If the Fund has a different class of investment shares, the contribution of each class of share value is calculated individually, taking into account the investment shares of the class rights. (5) the manager shall ensure that the information is disclosed to investors about the Fund's assets and the value of investment principles in accordance with this Act and the Fund rules. (6) the assets of the Fund and the investment part of the assessed value is calculated at least once a year. (7) open the Fund's assets and the investment share value is calculated, taking into account the nature of the investment and the investment part of the emissions and atpakaļpirkšan. (8) a closed Fund's assets and the value of the investment part of the calculation, increase or decrease in the Fund's capital. (9) On the assessment of the Fund's assets and the investment share value calculation results manager shall inform the investors of the Fund rules of operation. (10) the assessment of the Fund's assets may be carried out: 1) an external evaluator who has appointed a Manager in the execution of this function and which is independent from the Fund Manager and any other person who has a close relationship with the Fund or Manager; 2) Manager, provided the following requirements are fulfilled: (a) departments in charge of the assessment) is functionally distinct from the Fund's investment management unit, b) remuneration policy and other appropriate measures in practice prevent the emergence of conflicts of interest, and employees involved in assessing financial implications of evaluation results. (11) the custodian of the Fund may undertake the evaluation of the Fund's assets only if the custodian as an external evaluator delegate is functionally and hierarchically separate from custodian responsibilities and potential conflicts of interest are properly identified and managed, monitored, informing them of the Fund's investors. (12) the Manager may delegate to the valuation of assets to the external assessor if: 1) external evaluator is included in property investment in the list of evaluators, which led the Republic of Latvia enterprise register, or an external evaluator, governed by appropriate legislation or professional conduct and ethics rules; 2) external evaluator provided a professional manager that able to conduct valuation of assets according to the requirements set out in this Act; 3) delegation to the external assessor made pursuant to article 28 of this law in the service of the requirements and procedures for the delegation. (13) the Commission should have the right to request to manager cancels the external evaluators of assets assessment obligation unless the twelfth part of this article. (14) External evaluator does not have rights to the valuation of assets of the Fund be delegated further to a third party. (15) the manager responsible for the valuation of assets is carried out objectively, with due skill and care, and fund assets, net asset value and investment share value to be correctly calculated and published when the assets valuation is delegated to an external evaluator. (16) an external evaluator has the obligation to cover losses suffered by the external evaluator, Manager of negligence or intentional infringement, even if the Manager and the external evaluator in the contract have agreed that the external evaluator is released from liability for false evaluation. (17) the requirements for the assessment of the Fund's assets determined by the Regulation No. 231/13 article 28. Manager service and ancillary services delegation (1) the Manager of the contract may be delegated to a service and the provision of ancillary services to another person by notifying the Commission of at least one month in advance. (2) Before the delegation and ancillary services manager shall submit to the Commission a reasoned written application for the planned delegation and they need the agreement of the original or a copy, the authenticity of which has been certified by the Manager, as well as officials of the fourth paragraph of this article, that document, unless the Manager has previously been submitted to the Commission. (3) choosing the person who will be delegated to individual services or ancillary services, the manager shall take into account the following conditions: 1 the person has the appropriate qualifications), experience, impeccable reputation and sufficient resources to perform the duties delegated; 2) Fund investment management or risk management delegated to the Member States only licensed member investment management company, credit institution, an external investment manager or broker to the company. Delegation of services to another person is allowed, if it is not possible to delegate to the persons referred to in this paragraph and the Manager has been notified to the Commission by the Member State of origin of the supervisory organ of a person's suitability to provide such services; 3) Fund investment management or risk management delegate to a person established abroad, if the Commission considers that that person is subject to equivalent monitoring as the third paragraph of this article referred to in paragraph 2, the parties and the Commission with the relevant foreign supervisory authorities has concluded a cooperation agreement on the exchange of information in the field of the monitoring. (4) Before the delegation and ancillary services to another person the Manager develop appropriate service delegation procedure which determine: 1) the order in which the Manager decides on service or ancillary service delegation; 2) service or ancillary service delegation contract, execution monitoring and termination procedures; 3) people (officers and employees) and departments, which are responsible for cooperation with the Fund management delegated to the service provider and get the Fund management service and the continuous monitoring of the quality, as well as the rights and obligations of individuals; 4) with service or ancillary service received the related risk assessment and management procedures; 5) Manager free to acquaint himself with all the documents and information, as well as to make a person delegated in relation to delegated services; 6) Manager conduct, if the service provider does not comply with or not be able to meet the delegation agreement. (5) the Manager constantly provides the services received and the amount of quality monitoring and, if necessary, have the right to immediately terminate the contract if the delegation its implementation infringes on the interests of investors. (6) in the fourth paragraph of this article, the procedure Manager shall submit to the Commission before the service or ancillary service delegation to another person. Commission within 30 working days of the receipt of a document referred to consider and assess its compliance with the Act and the Regulation No. 231/2013. (7) the manager shall submit to the Commission all the statutory Commission to submit amendments to the document, if such amendments in connection with the service or services is made to the delegation. (8) the service provider may initiate the Fund's investment management service delivery Manager, where the Commission, within 30 working days of the fourth paragraph of this article, the document referred to in the receipt is not sent by the Manager of the decision prohibiting the planned fund to receive government services from the service provider. (9) If is delegated one of this law, article 5, second paragraph, the aforementioned ancillary services manager within five working days after the conclusion of a contract of delegation shall inform the Commission thereof by submitting the original of the contract or of law defined in the certified copy of the order. (10) the delegation contract manager shall include at least the following provisions: 1) the receivable fund government services or description of services; 2 accurate receiving Fund) management services and quality requirements; 3) Manager and service provider's description of rights and obligations, including: (a) the right to permanent) Manager to monitor delegated the provision of the service or the quality of the services, (b) law) Manager give the service provider required executable instructions on matters related to the service or ancillary services delegated in good faith, high-quality, timely and relevant laws and regulations, the execution of c) Manager the right to the service or services provider, upon receipt of a written request to immediately terminate the contract of delegation; 4) to the right of the Commission to become acquainted with the twelfth referred to in the documents, and request the service provider of ancillary services or other information associated with the service and the necessary delegation of the Commission's functions. (11) the Commission prohibits the delegate or ancillary services if: 1) service or ancillary service delegation interfere with Manager fully manage the Fund and may interfere with the interests of investors in the Fund; 2) service or ancillary services shall interfere with the Commission's oversight of Operations Manager; 3) delegation agreement does not comply with the requirements of this law and do not give a true and fair view of the Manager and service provider expected cooperation delegation for the duration of the contract; 4 delegation of Service Manager) will not provide any of the Fund management services. (12) the Commission is empowered to carry out the service or services provider check the location or place of provision of the service, to acquaint themselves with all documents, vouchers and accounting records, make copies, as well as to request this service or ancillary services from the provider information related to delegated management service of the Fund and the need to carry out the functions of the Commission. (13) the Commission may require the delegated manager that manages the Fund's services to another person, the delegation agreement shall terminate immediately, if the Commission finds that: 1) Manager does not perform the delegated management of the Fund the provision of the service quality supervision or take it sporadically and not enough; 2) that the Manager does not perform within the delegated management services-related risk management, or their insufficient and of poor quality; 3) the service provider operating the essential flaws that pose or are likely to pose a threat to the Manager's obligations; 4) from the eleventh part of this article the said circumstances. (14) the services or extra services delegation to another person does not relieve the Manager of this statutory responsibility for the administration of the Fund. (15) the Manager or any other person who is delegated the investment management of the Fund or risk management service may not sub-delegate the provision Fund custodian or custodian delegated person, as well as any other person whose interests may be in conflict with the Manager or fund investors ' interests. This delegation is permitted in exceptional cases, if the person delegated services, is functionally and hierarchically distinguish fund investment management or risk management services from other services rendered, which may lead to a conflict of interest, conflict of interest and provided a proper control and management, as well as informed the Fund's investors. (16) the delegated person may delegate the performance of services further, if: 1) has received written consent the Service Manager for further delegation; 2) before the conclusion of the contract of Manager has informed the Commission of further service delegation and received Commission authorization; 3) a person who is delegated further service, meet the requirements of the third paragraph. (17) any person whose services delegated to another person, ensure that the service can be delegated, subject to the conditions of the sixteenth, part one, as well as constantly monitor delegated service compliance with the requirements of this law. (18) the requirements and Rules Manager for delegation of service laid down by Regulation No 231/13 article 29. Submission and examination of complaints (the dispute) (1) the manager shall ensure that the Manager service and the provision of ancillary services related to the Fund's application and complaint of investors (the dispute) the examination procedure is readily available at the location of the Manager and the Manager's website, if one exists. (2) the Fund's investors and potential investors may submit Manager free of charge at the specified service location applications and complaints concerning the services or ancillary services. (3) the Manager, within 30 days after receiving the written request or complaint (the dispute) on the service or ancillary service, provide a written reply. If this time limit for objective reasons cannot be complied with, the Manager is entitled to extend the notice in writing of the application or complaint (the dispute) to the applicant. (4) the Fund's investors, who are to be considered as consumers, consumer protection law, are entitled to submit consumer protection Center submissions and complaints about this law, and other consumer protection law violations if they are associated with the Manager service or the provision of ancillary services. (5) if the investor suffers losses of the Fund Manager of the incorrect information supplied or because the Manager did not fulfil the requirements of this law, the investor has the right to seek statutory damages in General. Chapter IV. Alternative investment fund, article 30. The formation of the Fund and the Fund (1) the Fund may be set up as a case of togetherness, as a limited partnership or limited liability company. (2) the Fund as a matter of established Community Manager, the Fund approved the memorandum and rules of operation of the Fund. Manager founded Fund (hereinafter in this chapter V, the Manager and the Fund) within the meaning of this law is not a legal entity. Fund as a limited partnership or limited liability company formation is regulated by this law and commercial law, in so far as this law provides otherwise. (3) the Fund may be set up as an open or a closed Fund. The Fund can be established as a foundation by the Sub-fund. (4) open Foundation is a Fund, whose Manager is obliged, if requested by the Fund's investors, a month to invest part of the atpakaļpirkšan. Open the Fund Manager is released from the obligation to make a contribution if the contribution of parts atpakaļpirkšan parts are traded on a regulated market and the Fund Manager shall take the necessary measures to ensure that the investment shares market price are not significantly different from the Fund's share value. (5) the Fund is a fund whose Manager has banned contributions to part atpakaļpirkšan. (6) the Fund may begin operation only after its registration in the Commission. (7) common criteria for the recognition of the investment fund is determined by the regulations of the Commission. (8) the investment strategy of the funds is specified in Regulation No. 231/2013 (9) is the property of the Fund or sub-fund of the Fund (the Fund is established as a foundation by the Sub-fund) of kopmant and investors held, booked and managed separately from the other external Manager, it manages the Fund or sub-Fund (if the Fund is established as a foundation by the Sub-fund), as well as a custodian. Fund (the Fund is established as a foundation by the Sub-fund) thing is the kopmant of the Sub-fund. Such fund may not be the things that do not fit into one of the Sub-fund. (10) the fund investor is not entitled to claim division of property of the Foundation. This right is also not the pledged property investors in the mortgage, the creditor, a worker or an administrator of an investor — legal or natural persons, within the framework of insolvency proceedings. (11) the Fund must not be included in the property manager, custodian or main broker as the property of the debtor, if the Manager or a custodian, or a main broker of legal persons have been declared insolvency proceedings or it is eliminated. (12) the claims against the fund investors on its obligations may be directed to the part of his contribution, but not on the property of the Foundation. 31. article. The name of the Fund (1) the name of the Fund shall include the words "alternative investment funds" or its abbreviation "AIF". (2) the name of the Fund and clearly different from the Fund and the investment fund that the investment shares or certificates are distributed in Latvia. (3) The Manager of the Fund, the name of which used the words "money market fund", establish and comply with the rules of operation of the Fund in accordance with the Commission's regulatory requirements. 32. article. The founding document of the Fund the Fund's founding document is: 1) Manager for the Fund, the Fund established a Management Charter; 2) Foundation, which was founded as a joint stock company: the statutes; 3) Foundation, which was founded as a limited partnership, — public contract. 33. article. (1) the registration of the Fund To the Fund Manager of established, shall be submitted to the Commission by article 10 of this law in the eighth part, the documents referred to in one of the following forms: 1) electronic document in the form of laws and regulations on electronic document production and design; 2) in the form of a paper document. In this case, the documents shall also be submitted electronically by sending to the Commission's electronic mail address. (2) the Commission shall, within 60 days after the registration of the Fund for all required documents the receipt shall take a decision on the registration of the Fund. (3) the registered manager shall inform the Commission immediately of any change to this law, article 10 in the eighth that information, if it was made before the adoption of the decision on registration of the Fund. (4) a registered manager of the Fund within 10 working days of registration shall inform the Commission of any changes in this law article 10 information referred to in the eighth. Amendments shall enter into force, if the Commission one month from the date of receipt of the application and the attached documents, no reasoned objections. Registered manager after the registration of the Fund, the Commission shall submit to the Commission amendments in this law article 10 5 of the eighth part of the document referred to in paragraph 1, if the Fund is founded as a limited partnership. (5) the Commission shall adopt a decision to refuse registration of the Fund in the following cases: 1) Manager equity does not meet the requirements of this law; 2) Fund established as a joint stock company, but it does not meet the capital requirements of this law; 3) Fund documents submitted for registration does not comply with the requirements of this law; 4) Manager does not support that at least two officials have designated the competent fund investment strategy. (6) the Fund Manager and the Commission will publish the list on its Web site. 34. article. The Fund Investor's rights (1) the Fund Investor has this law, commercial law, articles of incorporation of the Fund and the Fund of the rights provided for in the rules, as well as the following additional rights: 1) without any restrictions to dispose of part of its contribution, if the legislation or the operations of the Fund rules do not stipulate otherwise; in proportion to the contribution of part 2) count in accordance with the laws and rules of operation of the Fund to participate in the Fund's distribution of earned income; in proportion to the investment part 3) the number of winding-up of the Fund to participate in revenue sharing. (2) open-fund investor has the right to require the Manager its investment part of the repurchases. (3) a closed fund investor has the right to require investors of the Fund, the convening of this Act in the cases and in the procedure. 35. article. Delimitation of liability of the investors of the Fund (1) the fund investors shall not be liable for the obligations of the managers. (2) the fund investor is responsible for claims that can be directed to the Foundation's property, the only part of the value of the investment. (3) agreements that is contrary to the provisions of this article shall have effect from the date of conclusion. 36. article. The real estate investment or equity shares of the Corporation (1) The Manager of the Fund for real estate secured in the land, but the capital of a capital company in the commercial register. That real estate in the land or building part of the capital in the commercial register registration in the name of the Manager with that real estate or shares purchased for a particular fund, they must not be disposed of or encumbered without the consent of the custodian of the Fund and the real property or capital assets do not include Manager Manager — legal persons — the insolvency process. (2) the Manager of the Fund loans granted for investments in real estate, are provided with fixed mortgages in favour of Manager by making a mark that the real estate is the specific fund loan guarantee granted and that it may not be saddled and alienate without the Manager's consent. (3) If a fund founded as a limited partnership or limited liability company, for such a Fund for real estate secured in the land, but the capital of a capital company in the commercial register. That real estate in the land or building part of the capital in the commercial register registration in the name of the Foundation with a check that these real estate or shares may not be transferred or encumbered without the consent of the custodian of the Fund. (4) if the real property is located in the territory of another State or a corporation whose shares are being purchased for the Fund is registered in another State, the manager ensures that this part of the requirements under the relevant national legislation. (5) in the first and third part, denied that a custodian agreement or lien needed if the Fund is managed by a licensed Manager. If the Fund is managed by a registered manager, custodian agreement or dispossession burden requires the Fund's founding document or action in the cases provided for in the rules. 37. article. Manager fund investors closed the general meeting (1) Investor meeting (hereinafter referred to as the Assembly) shall be convened by the Manager at its own initiative or at the request of the investor. (2) the Manager shall convene the general meeting of the Fund's activities, with the exception of the provisions of the first part of the investment of the provisions for approval of emissions, as well as when requested in writing by investors representing at least 10 percent of the value of the Fund. If you require the convening of the fund investors, the Manager must convene within one month of receipt of the request. (3) the request shall indicate the reasons for calling the general meeting and the agenda. The request manager. (4) if the Manager does not convene a general meeting within the prescribed period, the fund investors shall submit a written request to the Commission, which shall convene a general meeting within one month after receipt of the request. In this case, the general meeting shall be convened regardless of investor — written applicant — represented the value of the Fund. (5) notice of the convening of the General Manager shall be published in the Official Gazette "Latvijas journal", as well as to inform the Commission thereof. If the general meeting shall be convened by the Commission communication on the convening of the general meeting shall be published on the Commission. The convening of the general meeting expenses are paid from the Fund. (6) the general meeting shall have the right to make decisions binding on the Manager: 1) Fund rules and the approval of the amendment; 2) Manager; 3) the reorganization of the Fund; 4) liquidation of the Fund; 5) dividends; 6) other issues that are fixed by the Commission or which are provided for in the rules of operation of the Fund. (7) the general meeting shall have the right, if the participating investors representing at least half of the value of the Fund. (8) the decision of the general meeting is adopted if it voted in favour of the investors, representing not less than three quarters of the value of the Fund represented in the Assembly. (9) Manager, Commission representatives authorised persons and sworn auditor or certified auditor company (hereinafter referred to as the sworn auditor) shall have the right to participate, without the right to vote at the general meeting, but in an advisory capacity. 38. article. The Fund management rights transfer Manager (1) the Fund management rights may be transferred to another Manager in the following cases: 1) Manager waives administrative fund; 2) pick his other Fund Manager; 3) prohibits the Commission an external Manager to manage the Fund. (2) the Manager may transfer the Fund management rights to another manager authorized by the Commission. (3) in order to receive the Commission's permission to transfer the Fund management, the manager shall submit to the Commission a reasoned application, accompanied by the following documents: 1) transfer of funds; 2) Fund and the Fund of the provisions of the articles of incorporation, as well as a custodian contract amendments that need to be done in connection with the Manager. (4) the Commission month after all the documents referred to in this article shall receive a decision on the authorisation of the management of the Fund for the transfer of rights to another Manager, if the following conditions are met: 1 the Fund Administration) transfer of rights do not touch the interests of fund investors; 2) transfer of the Fund submitted to the documents are prepared in accordance with the requirements of the law; 3) Manager, which are placed at the Fund management rights, comply with this law Manager requirements. (5) the Manager, who handed the Fund management rights, after receiving the decision from the administration of the Fund in accordance with the procedure laid down in the Statute shall immediately inform all investors on the Fund Manager of the Exchange, as well as published in the Official Gazette "Latvijas journal" communication on the transfer of funds to another Manager. The notification shall specify the new manager's business name, registration number and location of the Board. (6) the agreement on the administration of the Fund for transfer to another manager shall enter into force not earlier than one month after the fifth paragraph of this article, the publication of this notice. Amendments to the rules of operation of the Fund, the Fund's Management Charter and a custodian agreement enter into force simultaneously with the Treaty on the transfer of the administration of the Fund. (7) as soon as the contract for transfer of management of the Fund shall enter into force, all with the Fund management rights and obligations to a new Manager. (8) if the external Manager does not support the management of the Fund in accordance with the requirements of the law, it shall immediately inform the Commission and the supervisory bodies of the Fund. The Commission requires the Manager to take all necessary measures pursuant to the requirements of this Act in the administration of the Fund. (9) If, despite the measures taken, the external Manager does not, however, provide for the management of the Fund in accordance with the law requirements, the Commission shall require that the management of the Fund Manager is terminated and the distribution of investments in Latvia and the Member States. The Commission shall without delay inform the external Manager management authority of the host Member State on the prohibition of the external Manager to manage the Fund and investment share distribution. (10) if the Commission has prohibited an external Manager to manage the Fund, the Manager of the month provides for transfer of management of the Fund to another Manager. 39. article. (1) reorganisation of the Fund the Fund can only be reconfigured in a merger. (2) not allowed in closed Fund with open Fund. One manager in the management of existing funds and fund managers may be combined. (3) funds that are established as a limited partnership or limited liability company, combines in commercial law. (4) the authorisation of the Fund or the merger of the Special Commission. (5) in order to receive the Commission's authorization manager fund or sub-fund mergers, the manager shall submit to the Commission: 1) the decision of the Board of Directors of the Manager of the Fund or sub-fund mergers and the reasons therefor; 2) Manager in founding the United Fund and the Fund rules; 3 the Fund or sub-Fund) of the financial statements. (6) for the purpose of this article the Fund referred to in the third subparagraph of the merger and received the authorization of the Commission before the application of the commercial institution involved in a merger, a company shall submit to the Commission referred to in article 347 of the commercial law and the Fund rules. (7) the Commission's request for the Fund or sub-fund mergers for consideration and decision within 30 working days after all this article fifth or sixth part of the document referred to in the receipt. Deciding on the authorisation of the Fund or sub-fund mergers, the Commission shall also adopt a decision at the same time as Manager of the Fund, the joint tracking. (8) the Commission shall take a decision not to permit the merger of sub-funds of the Fund or, if it is found in at least one of the following cases: 1) the documents submitted do not meet the requirements of this law; 2) Fund or sub-fund mergers significantly affected the legitimate interests of investors. (9) after the authorization manager Fund in accordance with the procedure laid down in the rules shall inform the investors of the Fund, indicating that investors are able to fund investment in atpakaļpārd parts, as well as before the merger of their fund investors the investment part of the atpakaļpirkšan, who have expressed a wish to atpakaļpārd Manager fund investment. The procedure provided for in this paragraph applies to the open funds. (10) Commission decision on the authorisation of the Fund or sub-fund mergers and joint fund registration takes effect after the date of notification of the decision of the Manager. 40. article. Liquidation of the Fund (1) If a fund founded as a limited partnership or limited liability company, its dissolution and liquidation occurs in accordance with the procedure laid down in the Law, subject to the addition of a third, eighth, ninth, tenth and nineteenth. (2) the manager shall take the liquidation of the Fund Manager, if: 1) year after the establishment of the Fund does not distribute any part of the investment; 2) Manager has made a decision on liquidation of the Fund; 3) fund investors have adopted a decision on the liquidation of the Fund; 4) the Commission has adopted a decision on the liquidation of the Fund. (3) the Manager for 10 working days after the decision on the liquidation of the Fund, the Commission informed of the liquidation of the Fund. Information shall also indicate the reasons for the liquidation of the Fund. (4) the Commission shall have the right to not allow the liquidation of the Fund, if the decision on the liquidation of the fund adopted a Manager and the liquidation does not meet the legitimate interests of investors. (5) if the Manager does not initiate liquidation of the Fund within one month from the date when the requirements of this Act, it was necessary to start, the Commission has the power to appoint the liquidators of the Fund. The Commission shall appoint the liquidators of the Fund, the second paragraph of article 4 in the case referred to in the paragraph. In accordance with the procedure laid down in this part appointed liquidator is all Manager rights in regard to the liquidation of the Fund. (6) for the opening of winding-up proceedings shall immediately notify the Commission and publish an appropriate notice in the Official Gazette "Latvijas journal". (7) the notice of liquidation, the liquidator of specifying vendor login time and space, as well as the date of publication of the notice. Vendor login period may not be less than three months from the date of publication of the notice, if the decision on the liquidation of the Fund is not specified in the longer term the vendor login. Creditors claim shall specify the content of the claims, the basis, and Add supporting documents of the claim. (8) in the course of Liquidation shall not be made part of the investments of the Fund, atpakaļpirkšan, and the instrument of incorporation of the Fund and the Fund's rules of operation for the distribution of the income of the Fund of fund investors. The liquidator shall have the right to perform only with liquidation. (9) after the opening of winding-up proceedings and liquidators shall organise the sale of assets of the Fund carried out. (10) of the assets of the Fund assets and sales revenues in the Fund of funds (hereinafter referred to as the liquidation proceeds) the custodian or the liquidator distributes, in the following order: 1) ensure a satisfying the claims of creditors; 2) the claims of creditors who have their claims to the period specified in the notice; 3) the claims of creditors who have their claims after the notice deadline, but before the distribution of the proceeds of liquidation. (11) If the proceeds of liquidation are not enough to meet the tenth part of this article claims referred claims are satisfied not satisfied from the Manager, except for claims arising after the Manager of the law. (12) the remaining liquidation proceeds shall be distributed to investors of the Fund in proportion to their investment share. (13) the liquidator shall submit for publication in the Official Gazette "Latvijas journal" statement on the distribution of the proceeds of liquidation of the fund investors, showing about one part to be paid the amount of investment as well as charges of space and time. (14) All payments to creditors and investors of the Fund made money. (15) the liquidator is acting for the vendor, and in the interest of investors in the Fund. (16) the liquidator in full response fund investors and third parties for damages suffered in the course of liquidation, if the liquidator for the purpose of or recklessly violated the law, the Fund rules or instruments of incorporation of the Fund or negligently performed his duties. (17) the liquidator shall have the right, in the course of liquidation to cover liquidation costs of liquidation proceeds. Liquidation expenses are not included in the mediation payments linked to real estate marketing. The following charges apply to the expenditure of the Fund, which is paid from the Fund's assets, and it specifies the maximum amount of management regulations of the Fund. Liquidation expenses shall not exceed two percent of the proceeds of liquidation. (18) on the liquidation of the Sub-fund shall apply in this article, the procedure of liquidation of the Fund. (19) the liquidator shall submit to the Commission with a monthly report on the progress of the liquidation. The liquidator within 10 working days of the completion of the liquidation shall be submitted to the Commission communication on the completion of the winding-up and liquidation of the expiry review. Chapter v. Part of the investment and distribution emissions article 41. General requirements (1) the portion of the Fund's investment in publicly traded in accordance with the financial instruments market law, in so far as this law provides otherwise. (2) investment fund shares may have different classes with different denominations, the jurisdiction payments or different rights to the distribution of the income of the Fund. One of the Fund's investment of one class into parts of equal rights has been strengthened. (3) the disposal of the investment shares of the acquirer over the seizure of the property in question also supposedly part of the Fund. (4) investment shares are issued in dematerialised form. (5) the Investment Fund Manager are inseparable. The instrument of incorporation or fund rules of operation determines the order in which the input is rounded to the number of shares after the split. (6) the investment part of the distribution is permitted only in article 9 of this law in the first and second paragraphs of this article, the seventh, eighth and ninth part. (7) Member State licensed Manager may distribute the investment part of the professional investors, as well as other investors in Latvia in accordance with the eighth and ninth part. (8) the Member State licensed Manager manages the Member State contribution of a fund may also distribute part of the investor who is not a professional investor, if the investor provide written proof that it can independently decide on the appropriate Fund and-aware of all the risks, including the risk of losing all or part of the contributions arising from such investments or commitments it entered and the minimum the investor share purchase Fund is concerned about 100 000 euro or more. (9) If a Member State licensed Manager manages the operations of the Fund of the Member State shall provide for the use of leverage financing for no more than 50 percent of the Fund's net asset value, the Fund's investments may also distribute such investor, who is not a professional investor, If the contributor of this article provide the proof referred to in eighth. Article 42. Requirements for Manager Fund enclosed (1) in a closed fund investment part one release about initial deployment is limited, and may not exceed twenty-four months. (2) the first paragraph of this article, the time limit laid down in the investment share of emissions is considered to have taken place on the part of the investment. (3) investment shares are issued only to full payment of the price of that part of the money. (4) a closed fund investment share issue price is the price of the investment part of the initial deployment, and it does not change throughout the time of emission. 43. article. Requirements for the open Manager Fund (1) the open part of the Fund's contribution to the emissions price is the first part of the sale price of the investment. (2) the Manager may determine in the open part of the release investment fund or atpakaļpirkšan commissions. Commission breakdown between the Manager and the Fund is determined by the articles of incorporation of the Fund or the Fund rules. (3) in the open part of the Fund's contribution to the sales price represents the value of the part of investment funds and investment part of the release of the Commission's money (if defined). Parts of the investment money, except for the portion of the release investment commissions (if fixed), immediately credited to the Fund assets. Part of the investment price and payment arrangements as well as commissions between the Manager and the Fund is determined by the articles of incorporation of the Fund or the Fund rules. (4) the investment of the Fund in the Open part of the selling price shall be fixed at the value of the part of the Fund, and information on it must be specified in the rules of operation of the Fund. (5) the open parts of the investment atpakaļpirkšan the Fund price is part of the value of investment, reduced by the atpakaļpirkšan Commission in accordance with the Fund rules. If the Fund has a different class of investment shares, it atpakaļpirkšan price shall be determined for each class of investment shares separately. (6) if the manager shall notify the Fund's contribution to the open part of the sales price, it must notify also the atpakaļpirkšan price. If the manager shall notify the Fund's contribution to the open part of the atpakaļpirkšan price, it must notify also the sales price. (7) open the Fund Manager has the obligation to make a contribution to the atpakaļpirkšan part of the investor's request, paying him in cash atpakaļpirkšan price in accordance with the provisions of the Fund's activities. (8) the open parts of the Fund's investments are removed from circulation when the Manager has received from the investor's atpakaļpirkšan application and the investor-owned investment fund are credited to the account of emissions. Part of the investment-out fund investors terminate all of them except the rights linked to claim part of the contribution of the atpakaļpirkšan prices. (9) the Manager may temporarily suspend the open part of the Fund's investment fund atpakaļpirkšan the operating conditions and in the cases specified in the order. Atpakaļpirkšan break may be envisaged only in exceptional circumstances, if the circumstances so require and the break is justified, taking account of the interests of investors. (10) the Atpakaļpirkšan price paid from fund assets of the Fund in accordance with the procedure laid down in the rules and time limits. (11) investment shares repurchased atpakaļpirkšan application of the order. (12) in order to ensure that this article is part of the seventh, Manager creates the nature of the operations of the Fund according to the liquidity management system and develop the appropriate procedures. 44. article. The Fund's investment manager part of the take-back requirement (1) where, by the fault of the Fund Manager's rules of operation and the documents attached to those messages, which are essential in the evaluation of investment, is incorrect or incomplete, the investor has the right to take back their Manager is part of the fixed assets and to pay him for this reason, all losses. (2) If in the first case referred to the Fund's investors has acquired part of the fixed assets, with investment services provider, this provider of investment services with the Manager is jointly and severally liable for the damages fund investor. Investment service provider is not liable if it does not know and could not know that the news is incorrect or incomplete. (3) If, when the Fund Investor has learned that the news is not correct or complete, he no longer holds investments, he has the right to have the Manager pay the difference by which she invested amount exceeds the investment part of the price atpakaļpirkšan atpakaļpirkšan. (4) in accordance with the requirements of the first, second and third part travel within six months from the date when the Fund Investor has learned that news is not correct or complete, but no later than three years from the date of acquisition of the investment share. Article 45. Requirements for the Fund, which was founded as a limited partnership (1) Limited Partnership members ' public order of conclusion of the contract and relationship of members is governed by the commercial law. (2) in addition to the commercial law of public contracts requirements include information about the duration of the Fund and the objective, the administration of the Fund, the General principles and procedures to handle the Fund's assets, and the reorganisation and winding up of the Fund. Article 46. Requirements for the Fund, which was founded as a joint stock company (1) If the open Fund founded as a public company, the Manager must at the request of the shareholder, not later than one month to take stock of atpakaļpirkšan. Following the share capital of the Fund varies depending on the share and the amount of deletion. (2) If the Fund established as a closed joint stock company, the Manager of atpakaļpirkšan shares and restricted shares in the Fund are deleted at the end of the period of operation or operations of the Fund rules in these cases. (3) the Fund shall apply the provisions of the Law on the increase of the share capital and the reduction, in so far as this law provides otherwise. (4) the setting up of the Fund's statutory share capital paid in full to the Commission for registration of the Fund. (5) the open Fund share time and number of shares issued is not restricted unless the statutes of the Fund and the Fund rules do not provide for the maximum size of the share capital of the Fund. If the share capital is increased, the current shareholder is not a prior right to buy new shares. Open Fund may not specify the size of the share capital and number of shares. (6) a closed fund capital may be increased only on the basis of the decision of the general meeting. If the share capital is increased, Subscribe to the new shares are entitled only to existing shareholders in proportion to the nominal value of the shares belonging to them. Other investors are entitled to subscribe to new shares if existing shareholders do not have exercised their right to set deadlines and such rights they have under the terms of the share capital increase. (7) the shares may not pay by instalments or pay with property investment. Subscribing for shares, pay them in full. (8) the Fund can emit only freely transferable shares. The Foundation is prohibited from issuing personnel, preference shares and convertible bonds, as well as to acquire its own shares. The Fund may acquire its own shares only if it is managed internal Manager. (9) the funds derived by increasing the share capital, the Fund shall provide to the Manager it-in accordance with the provisions of the Fund's activities. (10) the minimum voting age for each nominal value share gives right to one vote in the general meeting. If the shareholders ' Meeting decides a matter concerning open specific sub-fund of the Fund shareholders ' interests, the right to vote is only the Sub-Fund's shareholders. (11) the founder members of the Fund in addition to the applicable requirements set out in the statutes of the Fund include: 1) for information on the Fund type, duration and purpose. Closed for the duration of the Fund may not exceed 10 years; 2 information on the Fund) management general principles and procedures; 3) decision-making procedures, in particular the competence and decision-making procedures may be to deal with the Fund's assets; 4 share capital increase and reduction) conditions; 5) open Foundation stock atpakaļpirkšan stock atpakaļpirkšan the order and conditions of suspension and order; 6) dividend calculation and cost; 7) reorganization and liquidation of the Fund. (12) the statute or amendment of the statutes of the founder members of the Fund or manager shall submit to the Commission for reconciliation before it announced a notice of convocation of the general meeting. The Commission said the statute or amendment of the statutes examined 10 working days and give your consent or decide to refuse or consent of the amendments of the Statute. (13) if the body which convenes the general meeting, after having announced a notice of convocation of the general meeting, are submitted to additional questions on articles of association providing for changes in the eleventh part of this article that information, these additional issues may not be included in the call already on the agenda of the general meeting. (14) in addition to the commercial law of the shareholders ' meeting the rights laid down in the decision on: 1) investment policy, target and approval of the strategy; 2) Manager; 3) other matters that are provided for in the rules of operation of the Fund. Chapter VI. Custodian of article 47. A custodian for the sliding requirements (1) The custodian can be registered in a Member State by a credit institution, a credit institution registered in a Member State, the branch established in a Member State or in Latvia investment brokerage company that has undertaken the investment services and the provision of additional services, including the holding of financial instruments. (2) the manager shall ensure that each Fund has only one custodian. (3) Latvia licensed custody supervision provides the Commission. The sixth part of this article that the foreign fund custodian monitoring its foreign supervisory authority where the custodian has its registered office. (4) a custodian by this law and the Regulation No. 231/2013 obligations, act as an honest, careful and thorough landlord regardless of the Manager and ensure that services are provided with due professionalism and care Fund and the interest of investors. (5) in order to prevent the emergence of a conflict of interest between the custodian, Manager, the Fund and its investors, the Manager may not fulfil the obligations of the custodian. The main broker who is the counterparty of the Fund may perform those duties of the custodian of the Fund only if the principal broker's responsibilities are functionally and hierarchically separate from custody responsibilities, potential conflicts of interest are controlled according to the internal procedures and is aware of the Fund's investors. (6) a custodian of the Fund of the Member State of its obligations out of the Fund in the Member State of origin. Foreign fund custodian carries out its duties in a foreign country, in which the Fund is established, the Manager of the Fund in the Member State of origin or the Manager of that fund the reference Member State. (7) the custodian of the Fund Manager may choose the foreign credit institution registered in a foreign country or of a registered investment company, which has undertaken the investment services and the provision of additional services, including the holding of financial instruments, provided that the following conditions are satisfied: 1. the management authority of the Member State), which planned to distribute the foreign investment of the Fund, and the Commission, as Manager of the supervisory authorities have entered into cooperation and exchange of information agreement with the custodian of the supervisory organ; 2) custodian in the country of incorporation is made in Latvia monitoring custody requirements equivalent to the monitoring, as well as to custody subject to equivalent of minimum capital requirements; 3) of the Treaty State custody has not been included in the financial group created in the list as the country or territory which does not cooperate; 4) Member States which planned to distribute a foreign investment fund and Latvia as part of Manager originating with the founding of the country concluded a custodian agreement, the terms of which are equivalent to the Organization for economic cooperation and development tax there on the income and capital standards and the exchange of information in the field of taxation; 5) a custodian agreement provides that the custodian's response fund or its investors about 54 and 55 of this law article. (8) a custodian may exceptionally perform Fund or its Manager task such obligations that may present a conflict of interest between the Fund Manager and the investors, custodian, subject to the condition that the custodian is functionally and hierarchically distinguish other their duties of custodian responsibilities, potential conflicts of interest are controlled according to the internal procedures and is aware of the Fund's investors. (9) a custodian may use its holdings of assets transferred, if written consent is received from the Fund or the Manager, acting on behalf of the Fund. 48. article. Custodian responsibilities (1) a custodian shall have the following responsibilities: 1 to keep the Fund or Manager), acting on behalf of the Fund assets in accordance with this Act, Regulation No 231/2013 and the custodian agreement; 2) to ensure that the investment part of the issue, sale, atpakaļpirkšan and take-back take place under this Act, Regulation No 231/2013 and the Fund rules; 3) to ensure that the investment share value to be calculated according to this law, the Regulation No. 231/2013 and with the provisions of the Fund's activities, and to execute the Manager's orders, if they are not in conflict with this Act, Regulation No 231/2013, the custodian and the Fund's articles of incorporation or operational rules; 4) ensure are properly carried out transactions with the Fund assets are down payments; 5) to ensure that the income of the Fund will be used in accordance with the law, the Regulation No. 231/2013 and the instrument of incorporation of the Fund or the Fund rules. (2) the Custodian shall, at the request of the Commission, provide information that it receives in the performance of the Fund's custodian. The Commission the necessary information from article 47 of this law in the sixth paragraph of the foreign fund custodian requires foreign monitoring of the Fund's custodian institution. (3) the Custodian is obliged in the name of bringing claims against the investors of the Fund Manager, if required by specific circumstances. It does not limit the rights of investors in the Fund to bring such claims on their own behalf. (4) the Custodian is obliged to bring a counterclaim, if due to its commitment is directed to the fund drive. (5) the Custodian in full response fund investors and Manager for damage caused if the custodian or person to which the custodian holds financial instruments, with a view to or recklessly violated the law or custody agreement or negligently performed his duties. 49. article. A custodian agreement (1) custody agreement is a contract in writing between the Fund or Manager acting on behalf of the Fund, and a custodian, and under which the custodian undertakes to keep Fund assets and to do business with the Fund's assets, as well as serve the Foundation's accounts in accordance with this Act, Regulation No 231/2013, the instrument of incorporation of the Fund, the Fund's operational rules, this agreement and the Manager's orders. (2) a custodian agreement under Regulation No 231/2013 includes provisions of the Treaty specifies: 1) Manager, company registration number, license number, address or location of the Management Board; 2) custodian business name, registration number, license number, address or location of the Management Board; 3) the rights and obligations of the parties; 4) Fund account assistance procedures; 5) custodian the amount of remuneration and payment arrangements; 6) order in which a custodian shall bear the expenses incurred in carrying out transactions with the assets of the Fund or operating account of the Fund; 7) dispute; 8) others from the Foundation's articles of incorporation or operational rules consequential provisions. (3) the custodian agreement, the parties may also contain other provisions not contrary to this Act, Regulation No 231/2013, the instrument of incorporation of the Fund and the Fund rules. 50. article. A custodian contract terminated (1) custody agreement shall cease in the following situations: 1) extinguished the contractual duration of it; 2) the mutually agreed; 3) party unilaterally withdraw from the Treaty, subject to the second subparagraph, the time limits; 4) circumstances for which custody no longer comply with the Act and the Regulation No. 231/2013; 5) a custodian has declared insolvency of the legal person; 6) a custodian shall terminate; 7) launched the Fund liquidation; 8) the Commission shall order the Manager to change the custodian; 9) in other custody cases laid down in the Treaty. (2) the party unilaterally withdraw from the agreement, is obliged to notify the other party three months ' notice if the custodian agreement in the longer term. 51. article. Order for change of custody (1) the Commission has the right to give to the Fund or the Manager, acting on behalf of the Fund, to change the order of the custodian, if the custodian violates this law, Regulation No 231/2013 or a custodian agreement or if it is necessary for the Fund to investors ' legal interests. (2) in the first subparagraph in the case of the prescribed custodian contract terminated within the period prescribed by the Commission and order. 52. article. The new custodian of the conclusion of the contract (1) the Fund or Manager to act on its behalf, ensure that next day after the expiry of the custodian shall bring into force the new custody agreement, except where the contract is terminated due to the liquidation of the Fund. (2) if the Fund or the Manager, acting on behalf of the Fund, in the first paragraph, not be concluded within the time limit set a new custody agreement, it launched the Fund's liquidation. 53. article. The Fund assets-holding general requirements (1) the Custodian shall ensure that all funds are posted to the custodian in one or more of the money in the accounts that have been opened to the Manager, the custodian, acting on behalf of the Fund or the Fund's name. (2) a cash or holding the Fund or Manager, acting on behalf of the Fund, the financial instrument accounting, the custodian shall ensure that: 1) is possible at any moment to distinguish one fund or Manager, acting on behalf of the Fund, owned funds or financial tools from another custodian client money or financial instruments; 2) records are regularly compared with those third party transfers of funds or financial instruments accounting in which the custodian holds client funds or financial instruments. (3) a custodian who fund or Manager there, acting on behalf of the Fund, owned funds or financial instruments to third parties, provided that such funds or financial instruments are identifiable separately from the third party or its custodian funds belonging to or financial instruments. (4) the Custodian shall take possession of the assets and other records, if it is satisfied that the Fund or Manager, acting on behalf of the Fund's ownership of these assets. A custodian shall keep the said examination of ownership, based on the Fund or the Manager, acting on behalf of the Fund, the ownership of the supporting documents, as well as to the information that a custodian may obtain from public records. (5) the Custodian shall in addition to the rights and obligations set out in Regulation No 231/2013. Article 54. The holding of assets to third parties (1) the Custodian may hold to a third-party financial instruments or other assets of the Fund, if there is a good reason. (2) the Custodian is entitled to hold the Foundation's funds or financial instruments to the following third parties: 1) central bank of the Member State, if it provides such a service; 2 a credit institution registered in Latvia) or credit institution established in a Member State; 3 the credit institution registered in foreign countries); 4) company, which operates the foreign financial and capital markets and covered by the requirements adopted in Latvia equivalent supervision of investment services and investment in the provision of additional services. (3) a custodian, leveraging the Fund's financial instruments or other assets of the Fund for the holding of the third party, comply with the following conditions: 1) the skill, care and diligence in the selection of the third party and all the time, as long as they are kept at the financial instruments or other assets of the Fund, skill, care and diligence, and is checked regularly regularly monitor how third party perform the tasks conferred on it; 2) regularly make sure that the third party is an appropriate organizational structure and sufficient experience in financial instruments or other assets holding; 3) regularly to ensure that the country, which are kept in the financial instruments to third parties applies in Latvia monitoring requirements equivalent to the operation of the regulatory requirements, including minimum capital requirements and supervision, as well as the fact that this person is subject to an annual mandatory sworn auditor audit is to get an opinion on the existence of financial instruments; 4) regularly make sure that third party custodian of customer assets separate from its there and custodian assets so that they can be clearly identified as a custodian of certain assets belonging to clients; 5) the custodian is entitled to allow any third party to use the third person to hold the assets of the Fund placed at, if the custodian has received consent from the Fund or the Manager, acting on behalf of the Fund; 6) regularly make sure that the third party adhere to this law, article 47 of the second, eighth, and ninth and article 53 of the third and fourth part of custody requirements. (4) if the foreign law provides separate keeping of financial instruments only in a foreign country, but the registered company in a foreign country is not a company that comply with the third paragraph of this article, paragraph 3, a custodian may hold financial instruments or other assets of the Fund in this company so long, to a foreign country is registered to a third party in this article to the requirements of the relevant company. (5) if the custodian holds financial instruments or other assets of the Fund in part four of this article that a foreign company, the custodian shall ensure that the Fund's investors are aware of the financial instruments or other assets of the Fund holding of the foreign company and the holding of such grounds, and that the custodian has received the written consent of the Fund or the Manager, acting on behalf of the Fund, financial instruments or other assets of the Fund for holding foreign company. (6) the third person may hold financial instruments or other assets of the Fund to the other person, if the person in respect of compliance with the same requirements as put in the third person. Financial instruments or other assets of the Fund holding to third parties does not exempt a custodian of this statutory responsibility for performance of the duties entrusted to it. (7) the financial instruments or other assets of the Fund holding to a third party within the meaning of this article shall not be considered the law "on settlement finality in payment and settlement systems of financial instruments" this payment and settlement systems of financial instruments of the services or similar services provided by foreign financial instrument accounting system. 55. article. The responsibility for the loss of financial instruments (1) a custodian's response fund or the fund investors on the financial instruments which are held for loss to a custodian or a third party. The conditions under which the financial instrument is considered lost, and the external conditions under which custody shall be released from liability for the loss of financial instruments, determined by the Regulation No. 231/2013 (2) financial instruments in the event of loss of custody without delay as soon as possible, replace the Fund or Manager, acting on behalf of the Fund, lost financial instruments with the same categories of financial instruments and other financial instruments that are of value and liquidity are equivalent to the lost financial instruments If the cost of the lost value of the financial instruments appropriate compensation in cash. The amount of the refund shall be fixed in accordance with the financial instruments belonging to the Foundation of the accounting value of a day when found in an irreversible loss of financial instruments. (3) the Custodian shall not be liable to the Fund or the fund investors on the financial instruments which are held for loss to a custodian or a third party, if a custodian can prove that the loss is the result of an external circumstances that custody with reasonable means have not been able to influence and the consequences of which would have been inevitable, despite efforts by reasonable means to achieve the opposite. (4) the Custodian shall not be liable to the Fund or the fund investors on financial instruments loss to third parties if: 1) all this law of article 54 of the quarter and Regulation No 231/2013 requirements for the keeping of financial instruments to third parties; 2) between the custodian and the third party's contract, which provides that the responsibility for holding financial instruments fully assume a third person, and the Fund Manager or acting on behalf of the Fund, the financial instrument can fail in the case to bring an action for damages in return for this third party or allow the custodian to impose such a requirement on its behalf; 3) between the custodian and the Fund Manager or acting on its behalf, the contract has been concluded which provides that custody is released from the financial damages in the event of loss of the instrument, and this part, paragraph 2 of the agreement. (5) if the foreign legal regulation provides for the holding of certain financial instruments and that the foreign company in a foreign country is not a company that meets the article 54 of this law, the third subparagraph of paragraph 3, a custodian shall not be responsible for loss of such financial instruments. A custodian shall not be liable for loss of financial instruments, unless, in the case referred to in this article is followed, the following additional requirements: 1) articles of incorporation of the Fund or the Fund rules provide for the discharge of the custodian; 2) before investing in the Fund's investors are aware of the custodian and the discharge of such liberation justified reasons; 3) Fund or manager that works on behalf of the Foundation, has given an order for the custody of financial instruments keep a foreign company; 4) between the custodian and the Fund Manager or acting on behalf of the Foundation, is a contract that provides for the exemption from liability of the custodian; 5) between the custodian and the third party's contract, which provides that the responsibility for holding financial instruments are fully transferred to the foreign company and the Fund or Manager acting on behalf of the Fund, the financial instrument can fail in the case to bring an action for damages against the company's remuneration or allow the custodian to impose such a requirement on its behalf. Chapter VII. Disclosure requirements in article 56. The Fund, which is established as a case of togetherness, annual report, check and publish (1) the external Manager sorts in Latvia founded the open fund accounting and prepares open-Fund annual report under that law, the law "on accounting" and the Commission of the laws, rules, and in accordance with the Regulation No. 231/2013, the Commission shall issue appropriate regulatory provisions designed on the basis of the European Commission approved international accounting standards and international financial reporting standards. (2) the external Manager sorts in Latvia founded the closed fund accounting and prepares the annual report of the Fund closed in accordance with this law, the law "on accounting" and the Commission of the laws, rules, and in accordance with the Regulation No. 231/2013, the Commission shall issue appropriate regulatory provisions designed on the basis of the European Council of 8 December 1986 Directive 86/635/EEC "for banks and financial institutions the annual accounts and consolidated accounts". (3) the external Manager that manages several funds, ensure that each fund accounting are sorted separately. (4) the external Manager, who managed the Fund established in Latvia won control in a regulated market in the community or not included in the issuer, such a Fund also prepare consolidated accounts. The consolidated annual report, in the light of the first and second parts of the Commission rules, regulations. (5) the external Manager that manages Member State or foreign country of funds established, ensure that the Fund's annual report and consolidated accounts shall be drawn up in accordance with the Fund's founding of the applicable accounting standards. (6) the annual report of the Fund coincided with the period of the external Manager reporting year. (7) the certified auditor who conducted Fund annual report and the consolidated annual report, approved external audit manager statutory administrative body. (8) in Latvia founded the Fund's annual report and the consolidated annual report of the audit shall be carried out in accordance with the law on Certified Auditors ". Sworn auditor's report, including any notes, published together with the annual report and the consolidated annual report. (9) the external Manager that manages Member State (excluding Latvia) or foreign Fund, established in ensure that the Foundation's annual report and the consolidated annual report of the audit shall be carried out in accordance with the Fund's founding of the applicable audit standards. (10) no later than 10 days after the annual accounts and the consolidated annual report, and not later than six months after the end of the reporting year the external manager ensures that you are made public annual report and consolidated financial statements for each of the existing Member States in the management of the Foundation and established in each Fund, which distributes the investment part of it in the Member States. The annual accounts and consolidated annual accounts of public Latvian language or in a language that in the sphere of international finance. The annual accounts and the consolidated annual report, a translation of the public within one month of the annual accounts and the consolidated annual report. External Manager of the relevant information can be shared on your website or choose the disclosure to other suitable medium or location. (11) the external Manager shall ensure that not later than six months after the end of each year it manages the Fund's annual report and the consolidated annual report is submitted to the Commission and the Fund's founding of the national supervisory authority, if Foundation is established in the Commission. (12) If the Fund's annual report and consolidated accounts by an external Manager to the public in accordance with the financial instruments market law, contributors upon request deliver the thirteenth part of this article that information. The annual report and the consolidated annual report public no later than four months after the end of the reporting year. (13) the Foundation's annual report and the consolidated annual report shall include at least the following information: 1) financial reports; 2) Manager's report on the financial position and operating characteristics; 3) all took place during the reference year significant changes in this law, the information referred to in article 58; 4) external Manager officers and employees in the year under review the remuneration granted total separately pay a fixed part and a variable part, and following the number of beneficiaries of the Fund, as well as additional remuneration granted total, if applicable; 5) external Manager and staff whose professional activities have a material impact on its existing fund management risk profile, remuneration granted in respect of the financial year total, separately, the following officers and employees pay the amounts granted. (14) If the Fund is managed by a registered manager, Foundation's annual report and the consolidated annual report may not be included in the thirteenth part of this article 3, 4, and 5. the information referred to in paragraph 1. 57. article. The Fund, which set up as a company, annual report, check and publish (1) open the Fund organizes accounting and prepares open-Fund's annual report and consolidated accounts in accordance with this law, the law "on accounting" and the Commission of the laws, rules, and in accordance with the Regulation No. 231/2013, the Commission shall issue appropriate regulatory provisions, which are designed on the basis of the European Commission approved international accounting standards and international financial reporting standards. (2) the Fund shall keep accounts and prepare a closed Fund's annual report and consolidated accounts in accordance with this law, the law "on accounting" and the Commission of the laws, rules, and in accordance with the Regulation No. 231/2013, the Commission shall issue appropriate regulatory provisions, which are designed on the basis of the European Council of 8 December 1986 Directive 86/635/EEC "for banks and financial institutions the annual accounts and consolidated accounts". (3) a certified auditor who performs the Fund's annual report and the consolidated annual report of the audit shall be elected in accordance with the Law. (4) the Fund's annual report and the consolidated annual report of the audit shall be carried out in accordance with the law on Certified Auditors ". Sworn auditor's report, including any notes, published together with the annual report and the consolidated annual report. (5) the Fund not later than 10 days after the approval of the annual report and not later than six months after the end of the reference year shall be submitted to the State revenue service annual reports and sworn copy of the auditor's report with the extract from the shareholders (members) meeting for the approval of the annual report. The Fund, which prepare consolidated accounts, in addition to that specified in the first sentence not later than 10 days after the approval of the consolidated annual report and not later than six months after the end of the accounting year, shall submit to the State revenue service's consolidated annual report and the auditor's report sworn copy together with the extract from the shareholders (members) of the Protocol on the meeting of the consolidated annual report. Fund documents referred to in this paragraph shall be submitted in paper form or electronically. (6) in the fifth subparagraph of this article, these documents, if they are submitted electronically, or electronic copies of these documents, if they are submitted in paper form, the State revenue service within five working days electronically transmit to the Registrar of companies, providing public access to the documents you receive. Electronic service of documents and certification procedures established interdepartmental agreements to be concluded by the State revenue service and business register. (7) the company register after the sixth part of this article in that document receipt within five working days of publication in the Official Gazette "Latvijas journal" notice that this article is referred to in the fifth subparagraph, the information available in the register of companies. (8) no later than six months after the end of the reporting year the open will ensure that the Fund is being made public annual report and consolidated financial statements, if any, are being prepared. The open Foundation of relevant information can be shared on your website or choose the disclosure to other suitable medium or location. The Fund will ensure that the annual report and the consolidated annual report, if one is prepared for investors are available on request. (9) If the Fund's annual report and consolidated annual report public in accordance with the financial instruments market law, investors provide, at their request, in the tenth paragraph of this article, that information. The annual report and the consolidated annual report public no later than four months after the end of the reporting year. (10) the Fund's annual report and the consolidated annual report shall include this law article 56 the thirteenth, part 1, 2, and 3. the information referred to in paragraph 1, as well as at least the following information: 1) Manager officers and employees in the year under review the remuneration granted total separately pay a fixed part and a variable part, and following the number of beneficiaries of the Fund, as well as additional remuneration granted total, if applicable; 2) Manager and staff whose professional activities have a material impact on its existing fund management risk profile, remuneration granted in respect of the financial year total, separately, the following officers and employees pay the amounts granted. (11) If the Fund is managed by a registered manager, Foundation's annual report and the consolidated annual report may not include this article the tenth parts 1 and 2, and article 56 of the thirteenth part of the information referred to in paragraph 3. 58. article. Disclosure of information to investors (1) the manager shall ensure that for each investor of the Fund Manager manages the Fund and each of the Member States of the Fund, which distributes the investment part of it in the Member States, before the investment is available in the Fund rules, the last annual report prepared and consolidated financial statements, if any, are the last calculated net asset value of the Fund or the last calculated the value of the investments or the market price. (2) the rules of operation of the Fund shall include at least the following information: 1) investment objective of the Fund, the investment policy and strategy; 2) news on the main site of the founding of the Fund, the type and, if the Foundation is the strategy underlying the Fund, and the Fund is established, type and strategy, which provides for the Fund to make its investments, if investment in the sponsoring fund is a Fund of funds; 3) a description of the nature of the assets in which the Fund intends to invest about transaction types that the Fund may be made, and all the risks associated with these transactions, as well as all the investment limits laid down; 4) a description of the circumstances in which the Fund may be used to leverage funding, allowed to leverage funding types and sources and related risks, leverage funding and receive security and asset reuse restrictions, as well as the maximum leverage funding, which the Manager is entitled to use the name of the Fund; 5) Fund investment strategy or investment policy change procedure; the legal implications of the 6) description, arising out of contracts relating to the investment of the Fund, including details of the dispute and the applicable laws and regulations, court order recognition and enforcement in the State in which the Fund is working; 7) news on the Manager, the Fund's custodian, sworn auditor's and other service provider identity, their duties and the rights of investors; 8) description of how the Manager provides in article 16 of this law the tenth part; 9) Manager delegated the administration of the Fund and the Fund custodian services delegated features of a service description, as well as details of the delegated identity of the service provider and the possible conflicts of interest; 10) procedure for the assessment of the Fund's assets and the methodology for determining the value of assets, which also includes a description of the methods used for the evaluation of non-liquid assets or the assets that value is limited; 11) open the Fund's liquidity risk management description, including details of the investment part of the atpakaļpirkšan rights in both the normal and emergency conditions, as well as parts of the existing investment atpakaļpirkšan and take-back policy, the investment part of the sales and prices of atpakaļpirkšan methods and frequencies, as well as details on where and how often those prices are made public; 12) a description of the parts of the release investment commissions, fees and expenses, as well as the maximum amount, directly or indirectly borne by investors; 13) description of fair treatment to investors of the provision. If an investor receives different treatment or is entitled to receive different treatment, the description provides an explanation for why and what categories of investors in such different treatment is applied, as well as the investor legal or economic ties with the Fund or Manager, if one exists; 14) investments and the conditions and procedure for distribution; 15) previous performance of the Fund; 16) news on the principal broker's identity and any significant agreement between the Foundation and its main brokers, as well as: (a) the possible conflict of interest) prevention, (b)) contract with the custodian of the conditions laid down, if any are provided and apply to the transfer of assets of the Fund or reuse, c) information about any possible transfer of responsibility to the main broker; 17) details as to when and how investors will open the fifth and sixth part of certain information; 18) details as to when and how investors will be presented with the amendments to the rules of operation of the Fund and the final annual report prepared, as well as the consolidated annual accounts, if any, are being prepared. (3) the Manager before the investment fund inform the investor about the contract with the custodian for the cases when custody is released from liability in accordance with this law, article 55 of the third. Manager ensures that all investors in the Fund are promptly informed about changes in the scope of responsibility of the custodian. (4) If a Fund has a binding financial instruments market law on emission prospectus prospectus publication, or in a separate annex in addition to those requirements Manager also provides the first, second and third paragraph of information. (5) separately for each Manager manages the funds and the Member State for each Fund, which distributes the investment part of this Member State, provides investors the following managers: 1) expressed as a percentage of the Fund's liquid assets or assets not part of that value is limited and subject to the specific measures referred to in Regulation (EEC) no 231/2013; 2) changes that Manager methods, examples, the liquidity management of the Fund; 3) current risk profile of the Fund and the operations of the Fund Manager with related risk management risk management system used for the description. (6) separately for each Manager manages the State Fund that uses leverage funding, as well as for each Fund, the investment manager of the distributed parts of a Member State and who used leverage funding Manager periodically gives investors the following information: 1) changes associated with the maximum leverage, funding may be used by the Manager of the Fund, as well as the right to reuse the received collateral or guarantees granted to leverage finance transactions; 2) total leverage funding entered into this Fund. (7) of this article, the fifth and sixth part of the information referred to in the disclosure obligation and recurrence defined by Regulation No 231/2013. Article 59. Provision of information to the Commission (1) registered in Latvia Manager on each of its existing fund administration shall provide the Commission with the following information: 1) the market in which it operates, or mainly active trading with financial instruments or other assets it manages on behalf of the Fund; 2 types of assets) to the financial instruments with which it mainly dealt in its administration in the name of the existing Fund, including investment strategy and specialisation in certain geographical regions and sectors; 3) main Fund risks and significant concentrations. (2) Latvia licensed Manager for each Member State the management of existing funds and fund investment in parts it distributes in the Member State shall provide the Commission with the first paragraph of this article and the following information: 1) expressed as a percentage of the Fund not part of liquid assets, or assets to which the value is limited and subject to the specific measures referred to in Regulation No. 231/2013; 2) changes that Manager methods are examples of investment funds for the management of liquidity; 3) the Fund's risk profile and the risk management system used by the Fund to market risk, liquidity risk, counterparty risk, operational risk and other risks management; 4) main types of assets in which the Fund made the investment; 5 of the Act) in accordance with article 25 of the fifth and the second subparagraph of article 26 of the stress test results. (3) for the Commission to be able to assess the extent to which the Manager Administration used the existing Fund to leverage funding contributes to the development of systemic risk in the financial system, the unpredictable market risks or threaten economic growth in the long term, a licensed Manager for each of the funds it manages, who used leverage significant funding, the Commission shall provide the following information: 1) total leverage funding and distribution leverage funding related to: (a)) cash or securities borrowing , b) derivative financial instruments the Fund's assets, c) reuse leverage funding; 2) the five largest lender of money or securities and the amount of each of the funds. (4) the third part of this article the requirements of Latvia licensed foreign Manager runs on the existing Member States in the management of funds and foreign funds that it distributes the investment share in one of the Member States. (5) leverage financing deals, leverage funding calculation procedures and criteria for the funding of the lever for the treatment of material, as well as the content of the information to be provided and the periodicity for submission set out in Regulation No 231/2013 (6) the Commission's monitoring functions, including effective monitoring of systemic risk, as well as the compilation of statistics the Commission should have the right to request from a registered and licensed Manager also mentioned in this article. That effective monitoring of systemic risk requires further information, the Commission shall inform the European Securities and markets authority. (7) the Commission has the right to require from the Manager of the information that such exceptional circumstances, and where necessary to ensure the stability of the financial system and integrity or to promote economic growth in the long term, be required to furnish the European Securities and markets authority. (8) the Commission shall determine the information referred to in this article in the preparation and submission of the order. 60. article. Use of information manager under the supervision of cross-border transactions (1) of this Act, the Commission shall analyse the information referred to in article 59, to determine to what extent the leverage used by funds financing may lead to systemic risk to the financial system or the economy's long-term growth. (2) the Commission shall provide the other Member States ' supervisory bodies, the European Securities and markets authority and the European systemic risk Board of article 10 of this law in the eighth and the information referred to in article 59, pursuant to this law, the provisions of article 87. The Commission shall immediately inform the management authority of the Member State concerned of its supervision of the Manager or the Manager of the Fund Administration, which can lead to significant counterparty risk credit institution or other systemically relevant financial institutions in the Member State concerned. (3) in order to ensure the stability and integrity of the financial system, the Commission, at least 10 working days before the decision is taken on this law, article 81 of the seventh part 13 and 20 of the restrictions referred to in paragraph 1 shall notify the manager about this decision to the European Securities and markets authority, a European systemic risk Board and the Fund's surveillance authority. The institutions referred to in the communication, the Commission provides information on the limitations, restrictions and indicates the date on which these restrictions take effect. If in exceptional circumstances, the Commission may take a decision on the entry into force of the restriction before notification of this part specified in the first sentence. (4) the Commission shall evaluate the European Securities and markets authority's recommendations for the Manager to limit eligibility for a particular case. If the European Securities and markets Authority agrees with the Commission's expected decision, it shall enter into force within the period prescribed by the Commission. The Commission may decide, in the light of the European Securities and markets authority recommendations, but the Commission shall present to the European Securities and markets authority of the reasons why the suggestions are not taken into account. (5) in determining the law of article 81 of the seventh part 13 and 20 of these constraints, which according to the third paragraph of this article is required to notify the European Securities and markets authority, the Commission shall take account of the Regulation No. 231/2013 requirements for assessment of risks related to the leverage effect of funding on financial system stability and integrity. Chapter VIII. The essential participation of the Fund or the acquisition of control of a corporation article 61. The General rules of participation or substantial control (1) the provisions of this chapter apply to: 1) Manager that manages one or more of the funds which each individually or jointly to the agreement acquires control of a regulated market in the community are not included; 2 managers that the) agreement to invest in managed funds not included in the regulated market society in which these funds are obtained. (2) the provisions of this chapter shall not apply if the control is obtained in one of the following companies: 1) society which, according to its annual report, consolidated annual report or the information contained in the meet at least two of the following criteria: (a)) average number of employees in the financial year of less than 250, b) total assets not exceeding 43 million euro, c) an annual net turnover not exceeding eur 50 million; 2) special purpose entity, the purpose of which is the acquisition of immovable property or management. (3) the requirement for notification under article 62 of this law establishes procedure also applies to managers who manage the Fund, which acquires without voting rights not listed on a regulated market in the community. (4) the requirement for notification under article 62 of this law in the first, second and third subparagraphs of the procedures laid down in article 65 and these restrictions to reduce active also refers to the Manager, who managed the Fund acquires control of the issuer. (5) control the meaning of this chapter is more than 50 percent of the voting rights of acquisition of a regulated market in the community are not included. (6) in determining the amount of the participation Fund, shall also take into account the following Fund indirectly obtain voting rights: 1) voting rights which are entitled to use a controlled company of the Fund; 2) voting rights which are entitled to use the natural or legal person on its behalf, but the Fund or its controlled companies. (7) in determining the amount of the participation Fund, take into account all shares (shares), which gives the right to vote, including those the use of which is subject to prohibition. (8) the control of the issuer shall be determined in accordance with the financial instruments market law provisions of the stock buy-back offer. (9) If this Act 63. referred to in the second paragraph of article information contains trade secrets, employee of the Corporation are required not to disclose information in their possession that is employer's trade secrets. The employer is obliged to indicate in writing to the employees, which is considered a trade secret. (10) in determining the amount of the participation Fund, which provides control of the Corporation, and its method of calculation, the national laws and regulations, in which the Corporation's registered office. 62. article. Statement of the essential participation and control of the regulated market in the community are not included (1) the Manager shall promptly, but not later than 10 working days after the Fund acquired or disposed of voting shares (shares) in the company, shall notify the Commission of its share of the voting rights in a society where that proportion reaches, exceeds 10, 20, 30, 50 and 75 percent or falls below the above percentages. (2) the Manager that manages one or more of the funds which each individually or jointly to the agreement acquires control of a regulated market in the community are not included, as well as the managers who invest on the agreement to manage the funds included in the regulated market society in which these funds acquire control, immediately but not later than 10 working days after the fact, notify the Commission and the public company shareholders (participants) You can find out by using the public register of shareholders (participants) or public records. (3) in the second part of the communication shall contain the following information: 1) distribution of voting rights at the date of the notice in number and percentage of the share capital and of the voting shares (share) after the acquisition or disposal; 2) controlled company, through which the Fund has the right to vote; 3) identity of the Fund, even if the Fund is not entitled to vote, and the person's identity, which is entitled to use the voting rights on behalf of the Fund; 4) date on which voting shares (share) the proportion reaches, exceeds the voting rights provided for in the first subparagraph or the proportion was less than that. (4) the Board shall immediately inform the representatives of the employees of the company or, if there are no such representatives, the employees themselves on the fact that the Manager Administration, the existing Fund acquired control of the company, and provide those referred to in the third subparagraph. Article 63. Information on disclosure of acquisition of control (1) Manager that manages one or more of the funds which each individually or jointly to the agreement acquires control of a regulated market in the community or not included in the issuer, as well as manager that to the agreement, the investing in the funds managed by the regulated market or securities not included in society, where they obtained control, immediately but not later than 10 working days following the said fact notify the Commission , company or issuer and its shareholders (members), you can find out by using the public or the issuer's register of shareholders (participants) or public records. (2) the Manager notice shall provide the following information and documents: 1) the first paragraph of this article Manager registration number, license number, the legal address and location of the Management Board; 2) prevention and conflict of interest management policy between the Fund Manager and the company or issuer; 3) of the measures to eliminate the special advantages in agreements between the Manager and the fund company or issuer; 4) Fund and the public or employees of the issuer and its external and internal communications policy. (3) the company or the issuer's Management Board shall immediately inform the public or representatives of employees of the issuer or, if there are no such representatives, the employees themselves on the fact that the Manager Administration, the existing Fund or the issuer in the company acquired control and give them this article the information referred to in the second subparagraph. (4) the managers that manage funds acquires control of a regulated market in the community are not included under the provisions of the first subparagraph, shall promptly, but not later than 10 working days after that fact shall inform the company and its shareholders (members), you can find out by using the public register of shareholders (participants) or public records, intention in relation to the company's future business and jobs, to include all the essential conditions of employment changes. (5) the Board shall immediately notify the company and the employees ' representatives or, in the absence of such representatives This is not, the employees referred to in the second subparagraph of article information. (6) the managers that manage funds acquires control of a regulated market in the community are not included under the provisions of the first subparagraph, shall promptly, but not later than 10 working days after the fact, notify the Commission and the fund investors on the acquisition of the business and funding source. 64. article. Annual report requirements, the Fund acquired control of the regulated market in the community are not included (1) Manager that manages one or more funds that, individually or on the agreement acquires control of a regulated market, does not include the public, ensure that you are running one of the following requirements: 1) regulated market shall not board the public listed company's annual report, prepared, subject to the requirements of the second subparagraph shall be made available to the representatives of the employees of the company or If there are no such representatives, the employees themselves in the period in which such annual reports shall be prepared in accordance with the regulations; 2) Foundation's annual report and the consolidated annual report, prepared pursuant to the requirements of this law, are included in the information referred to in the second subparagraph on the regulated market, not included. (2) the information that you include in the company or the Fund's annual report and the consolidated annual report, include a true overview of the development of society, reflecting the State of the end date of the reporting period. The report shall also indicate: 1) all significant events after the end of the reporting period; 2) further development of the public plans; 3) information and public purchase of own shares. (3) the Manager, which manages the Fund, referred to in the first paragraph, in addition to that provided for in the first subparagraph perform one of the following requirements: 1) makes every effort to ensure that the regulated market is not a listed company, the Management Board of the company's annual report, no later than six months after the end of the accounting year, shall make available for the representatives of the employees of that company or, if there are no such representatives, the employees themselves; 2) make available to investors in the Fund regulated market companies not included in the annual report, no later than six months after the end of the year or the day when the regulated market companies not included in the annual report is prepared in accordance with the Fund's founding of the national laws and regulations. Article 65. The reduction of restrictions on assets (1) Manager that manages one or more funds that are each individually or to the agreement obtained control of the regulated market or securities not included in society, having regard to the second part of this article, these constraints, 24 months not eligible: 1) promote, support or ask to make distributions, capital reduction, stock (share) or public atpakaļpirkšan own shares (share); 2) shareholders (participants) at the meeting to vote on the reduction of share capital distribution, stock, or public atpakaļpirkšan own shares (share); 3) allow distribution, reduction of the share capital, atpakaļpirkšan of shares or companies own shares (share). (2) in the first subparagraph of this article Manager restrictions apply to the following activities: 1) on any distribution to shareholders (participants), if the last date of the end of the year in the annual report of the public reported the own funds are less or after such distribution would become less than the paid share capital plus the reserves that may be split up in accordance with the laws and regulations or statutes; 2 the amount of distribution) of the shareholders (participants), which exceeds the profit for the reporting year and prior year retained earnings and reserves about the amount reduced by the previous year does not cover losses, and the amount included in the reserve, determined in accordance with the laws, regulations or statutes; 3) equity reduction below the second part of this article, paragraph 1 of the company's own shares (share) the acquisition or the public in advance or just get (part of) the shares acquisition by any person in his own name but on the company's invoice. (3) for the purposes of this article, be deemed dividends distribution, as well as other payments to the shareholders (participants) arising from shares (shares) secured rights. (4) the provisions of this article on the reduction of the share capital does not apply where the reduction of share capital subscribed is made to cover losses or increase the unallocated reserve, if after this operation the amount of such reserves shall not exceed 10 per cent of the share capital of the reduced subscribed. (5) in respect of own shares (share) the acquisition by the company comply with the applicable requirements. Chapter IX. Member State the right of Member States to the Fund Manager for the Administration and distribution of investment part of article 66. In Latvia, the licensed rights in the Member States of the Fund Manager's investment in parts distribution in Latvia (1), the provisions of this article shall apply to the licensed Manager in Latvia, in Latvia, which wants to spread its administration in Latvia founded Fund or its investment part of the existing Member States in the management of the investment of the Fund. (2) If the first paragraph of this article is a sub fund the Fund, then its investment part is authorized to distribute provided that the principal is a Member State of the Fund Manager's existing Member States in the management of the Fund. (3) to start the Foundation's investments, the manager shall submit to the Commission a statement with the following information and documents: 1) a programme of operations stating information about fund investments wants to distribute; 2) news on the founding site of the Fund; 3) memorandum of the Fund; 4) Fund rules; 5) news about the Fund custodian; 6) information on the main place of incorporation of the Fund if the Fund is a feeder Fund; 7) last prepared the annual accounts and consolidated annual accounts, if any, information is prepared for the latest calculated net asset value of the Fund or the last part of the calculated value of the investment or market price; 8) the order in which the investment part of the distribution is provided only to professional investors. (4) the Commission has 20 working days after it has received all the documents prepared according to the requirements of the law, shall adopt a decision on the authorisation of the Manager to distribute investment shares. (5) the Manager shall have the right to start the investment part of the distribution the next day after receipt of the decision of the Commission. (6) the Commission shall take a decision not to give permission to fund part of the fixed assets for distribution, if the Manager of the Fund Manager or Manager does not meet the requirements of this law. (7) when referred to in the third subparagraph the expected amendments to the documents, the manager shall inform the Commission of them at least one month before the date of the entry into force of the amendments. The planned amendments, not the manager shall inform the Commission immediately after their entry into force. (8) If this article is mentioned in the seventh paragraph, the planned amendments to the documents do not meet the Manager of the Fund by the Board or Manager does not meet the requirements of this Act, the Commission shall take a decision not to give permission to carry out the amendment. (9) If this article is mentioned in the seventh paragraph, the planned amendments have entered into force, although the Commission has not given permission to amend these documents or amendments planned documents do not meet the Manager of the Fund by the Administration, or even the Manager does not meet the requirements of this law, the Commission is entitled to apply the sanctions provided for in this law and restrictions. Article 67. In Latvia, the licensed Manager rights to distribute part of the investment of the Fund of the Member State in other Member States (1) the provisions of this article shall apply to the licensed Manager in Latvia, which wants to spread its administration in Latvia founded Fund or its investment part of the existing Member States in the management of the Fund's investments in other Member States. (2) If the first paragraph of this article is a sub fund the Fund, then its investment part is authorized to distribute provided that the principal is a Member State of the Fund Manager's existing Member States in the management of the Fund. (3) to start the Foundation's investments, the manager shall submit to the Commission a statement, accompanied by information on the Member States in which the proportion of the investment planned for the distribution, as well as article 66 of this law as provided for in the third subparagraph. (4) the Commission has 20 working days after it has received all the documents prepared according to the requirements of the law and submitted through the electronic media, send a notice and documents Manager and Fund of the Member State's supervisory body, in which the investment of the Fund, part of the distribution. The Commission shall forward the notice by electronic means, if the Manager of the administration of the Fund and the Manager meets the requirements of this law. The Commission communication accompanied by proof that the Manager is allowed to manage the Fund, according to its description of the action specified in the investment strategy. (5) the Commission shall immediately inform the Manager of communication of national supervisory authorities. (6) the Manager may start parts distribution of investments of the Fund in another Member State from the date of receipt of the notification. (7) Manager provides a contribution to the dissemination of the part only to professional investors manage the host Member State's law in accordance with the procedure laid down and supervision. (8) in the third subparagraph notification and proof referred to in the fourth subparagraph shall be drawn up in the language of international finance. (9) if the information submitted, the Manager's amendment, for submission to the Commission and apply this law for consideration article 66 in the seventh, eighth and ninth part. (10) if the amended documents does not affect the operation of the Fund and the Manager according to the requirements of this Act, the Commission shall inform the Manager and supervisory bodies of the Fund on the amendments of this article fourth and fifth subparagraphs. 68. article. State licensed Manager rights to distribute part of the investment of the Fund of the Member State of Latvia (1), the Member State licensed Manager redistribute it manages the investment of the Fund of the Member State of shares in Latvia, where the Commission has received a State licensed Manager enforcement agency notification, accompanied by the following documents: 1) this law, article 66 of the documents referred to in the third subparagraph; 2) article 67 of this law is referred to in the fourth paragraph. (2) the first paragraph of this article and article 67 of the statement of the proof provided for in the fourth subparagraph shall be submitted in the language of international finance. 66. This law provided for in the third subparagraph of article documents that must be submitted to the Commission in accordance with the first paragraph of this article shall be submitted in an official language or the language of international finance. (3) a Member State may be authorised to start the Fund Manager is part of the fixed assets of the Member State of Latvia distribution licensed Manager management authority of the date of receipt of the notification. Article 69. Established in another Member State of the Fund managed by a licensed Manager in Latvia (1) licensed in Latvia has the right to manage a Manager in another Member State, the Commission established the Fund if the Manager is authorized to exercise the following its successful investment strategy of the Fund. (2) the manager who wants to manage a fund established in another Member State, without having to open a branch office, the application shall be submitted to the Commission, as well as the following documents and information: 1), which gives a true and fair view of the Manager planned action in the management of the Fund; 2) for information on the Member State in which the Manager plans to carry out the administration of the Fund; 3) action programme containing Services Manager wishes to provide; 4 information on the Fund) by the manager wants to manage. (3) the manager who wants to open a branch in another Member State, in addition to the second part of this article, the information and documents submitted: 1) the organisational structure of the branch and work organisation; 2 formation of the Fund) for information on the site, which contains documents of the Fund; 3) Branch Manager's first name, last name, year of birth and date and ID number (if one is assigned); 4) branch address and contact information. (4) the Commission shall examine the application and documents and of their decision in writing inform the management authority of the Member State concerned and the appropriate manager within 30 days, if the application and the documents submitted in the second case referred to, or within 60 days, if the application and the documents submitted to the third part of this article in that case. (5) simultaneously with the decision referred to in the fourth subparagraph, the Commission shall send the Member State concerned of the host supervisory authority, the second and third subparagraphs of that information and documents, as well as proof that the Manager has received the license in accordance with the procedure laid down in this Act. (6) the Manager may start to manage a fund established in another Member State from the date of receipt of the notification by the Commission. (7) the manager shall inform the Commission in writing of the amendment in the second and third subparagraphs, as well as the prescribed information about the intention to terminate the operation of the branch not later than 30 days before the amendment or termination of the planned branch. (8) If the amendments in the second and third subparagraphs of the information submitted, the Manager has not previously informed the Commission and the Commission of the amendments in question is not dealt with in accordance with the procedure laid down in this article, the Commission shall act in accordance with article 66 of the law, part of the ninth. (9) any amendments to the second and third subparagraphs in that information and documents, as well as on the amendment to the entry into force of which is not consistent with the Commission, but which do not affect the administration of the Fund Manager, in accordance with the requirements of this Act, the Commission shall inform the Manager of the host supervisory authorities. (10) in the second and third subparagraphs above shall submit to the Commission documents in the language of international finance. (11) in the second and third subparagraphs the content of information to be determined directly applicable European Union legislation. 70. article. In Latvia founded the Fund managed by State licensed Manager (1) licensed in a Member State may manage Manager in Latvia founded the Fund, without opening the branch or the branch opening, if the Member State is received by the Commission licensed Manager management authority decision to authorise the Member State licensed Manager to initiate the management of the Fund in Latvia by opening a branch or branches without opening. (2) in the first paragraph, this decision shall be accompanied by the following documents: 1) article 69 of this law in the second or third paragraph of information and documents; 2) proof that a Member State Manager is licensed in the laws of a Member State. (3) Member State licensed Manager may commence in Latvia founded the management of the Fund from the date of receipt of the notice of the Commission concerned. Chapter x. Foreign fund operating conditions article 71. Foreign Fund Administration (1) Latvia licensed Manager may manage the foreign fund investments are not distributed in the Member States, subject to the following conditions: 1) Manager for foreign fund management met the requirements of this law, except article 56 and of Chapter VI requirements; 2) between the Commission and the Fund's founding of the national supervisory authorities have concluded a cooperation agreement on the exchange of information and the monitoring of the implementation of the function. (2) the first subparagraph of paragraph 2 of the cooperation agreement referred to in the provisions to be included in the content on the exchange of information and monitoring functions is determined directly applicable European Union legislation. 72. article. In Latvia, the licensed Manager rights to distribute foreign fund investments in the Member States (1) licensed Manager in Latvia if it meets all the requirements of this law, except for the Manager of the requirements laid down in chapter IX, may be in Latvia and other Member States to distribute the existing in its administration of a Member State, or a foreign fund underlying fund investment share which is not a member of the main Fund Manager Administration existing Member State Fund. (2) in addition to the first paragraph of this article on foreign fund to the supervisory bodies and the founding of the State of the Fund is subject to the following conditions: 1), the Commission and the management authority of the foreign Fund have concluded an agreement of cooperation on the exchange of information and the implementation of appropriate supervisory functions directly applicable European Union legislation; 2) of the Treaty establishing the National Fund is not included in the financial group created in the list as the State and territory which do not cooperate; 3) of the Treaty establishing the National Fund has concluded the contract, the terms of which are equivalent to the Organization for economic cooperation and development tax there on the income and capital standards, as well as multilateral agreements in the field of taxation with Latvia and other Member States, which plan to distribute foreign fund investments. (3) If a licensed Manager in Latvia wants to distribute the first part of the contribution from the funds referred to in the part of Latvia, this notice shall be submitted to the Commission, accompanied by this law, the third paragraph of article 66 of the mentioned documents. (4) the Commission has 20 working days after receipt of all the documents prepared and submitted according to the requirements of the law, inform the Manager and a European Securities and markets authority for permission to distribute the notice period in Latvia, the investment of the Fund. (5) the investment part of the distribution manager may commence from the date on which it has received the approval of the Commission. (6) the Commission shall take a decision not to allow Latvia to distribute the funds specified in the notice, if the investment manager of the Fund Manager or the Manager's activities do not comply with the requirements of this law. (7) If a licensed Manager in Latvia wants to distribute the first paragraph of this article, part of the contribution of the funds in other Member States, except Latvia, this notice shall be submitted to the Commission, accompanied by information on the Member States in which the proportion of the investment planned for the distribution, as well as article 66 of this law in the third paragraph, the documents drawn up in the language of international finance. (8) Commission 20 working days after receipt of all the documents prepared according to the requirements of the law and submitted through the electronic media, send these documents to the institution of the Member State in which the surveillance manager wants to distribute investment shares. The Commission shall forward the notification by electronic surveillance authority of a Member State, if the Manager of the administration of the Fund and the Manager meets the requirements of this law. The Commission communication accompanied by proof that the Manager is allowed to manage the Fund, according to its description of the action specified in the investment strategy. (9) in the third subparagraph, the notification and the eighth of the draw up the attestations referred to in the language of international finance. (10) the Commission shall immediately inform the Manager, as well as the European Securities and markets authority of the Member State of dispatch supervisory institution. (11) the Manager may start parts distribution of investments by the Fund in the host Member State from the date of receipt of the notification. Manager provides investment part distribution, only professional investors manage the host Member State's law in accordance with the procedure laid down, and the distribution of the investment part of the monitored host Member State supervisory authority. (12) If this article is the third and the seventh in the information referred to in part amendments expected to inform and are dealt with in accordance with article 66 of this law's seventh, eighth and ninth part. (13) any amendments to this article, the third and the seventh part this information and documents, as well as on the amendment to the entry into force of which is not consistent with the Commission, but which shall not affect the operation of the administration of the Fund Manager, it shall inform the Manager of the host supervisory authorities. 73. article. State licensed Manager rights to distribute foreign fund investments in Latvia (1) Member State licensed Manager redistribute Latvia foreign investment of the Fund or any part of his Administration's existing foreign fund or alternative investment of the Fund of the Member State in which the main part of the Fund Manager of a non-Member State, the Member State in managing the Fund, if the Member State is received by the Commission licensed Manager enforcement agency notification, accompanied by the following documents: 1) this law, article 66 of the documents referred to in the third subparagraph; 2) of article 72 of this law in the eighth paragraph of the Declaration, drawn up by the Member State which licensed Manager supervisory body. (2) the first paragraph of this article shall submit the notification and acknowledgement of the language of international finance. The first part of this article referred to in paragraph 1 shall submit to the Commission documents in the national language or languages used in international finance. (3) a Member State may be authorised to start the Fund Manager is part of the fixed assets distribution in Latvia from the date when the Commission received the notification. (4) if the Commission as Member State licensed Manager a management authority of the host Member State finds that between the Manager of the home Member State supervisory authorities and foreign supervisory bodies of the Fund have concluded a cooperation agreement on the exchange of information and implementation of supervisory functions, as laid down in article 72 of this law the second part of paragraph 1, as well as the Manager of the home Member State supervisory authority has not adhered to this law 72. the second paragraph of article 2 of the conditions of paragraph , The Commission may apply to the European Securities and markets authority to obtain its opinion. (5) in the fourth paragraph of this article, in this case the Commission's permission to start a fund manager investing part of the distribution in Latvia only after receiving the European Securities and markets authority, the Manager of the home Member State supervisory authorities and foreign supervisory bodies of the Fund shall be concluded a cooperation agreement on the exchange of information and implementation of supervisory functions, as laid down in article 72 of this law the second part of paragraph 1. and that the Manager of the home Member State supervisory authority has followed this law, article 72 of the second subparagraph of paragraph 2. Chapter XI. Grant of license for a foreign Manager article 74. Rules for the issue of a licence for a foreign Manager (1) If a foreign Manager plans to manage state funds, or distribute such part of the Fund's investment in the Member States in accordance with the law and with article 78.79, it receives a management authority of the reference Member State license alternative investment fund manager for action in accordance with the procedure laid down in this chapter. (2) a foreign Manager is entitled to receive the authorization referred to in the first subparagraph, if it fulfils all the requirements of this law, except article 17, paragraph 8 of the fifth part and chapter IX. (3) a foreign Manager can ignore the individual to apply the requirements of this law, if it shall submit to the Commission the rationale and evidence that: 1) this law norms are incompatible with the founding of the State of his legislation, which followed a foreign Manager in the administration or in the existing foreign investment fund for distribution to Member States of parts; 2) foreign Manager or foreign fund regulations applicable to the equivalent regulatory objectives and ensure the laws of the Member States equivalent investor protection fund; 3) foreign or foreign fund manager shall operate in this part of the Member States referred to in paragraph 2 the laws of equivalent legislation. (4) a foreign manager who wishes to be licensed alternative investment fund manager, is the authorized representative whose founding site is the reference Member State. Authorised representative shall ensure that it has sufficient resources and experience to carry out this law authorized representative. (5) in the fourth paragraph of this article, authorized representative has referred to the foreign Manager of contact in the Member States. This law laid down in the exchange of information between the Commission, the other Member States and the supervisory authorities, as well as foreign Manager of fund investors and Manager of the Member happens to authorized representative. (6) the authorized representative and the foreign Manager share the responsibility for this Act rules in the management of a foreign fund or management of an investment fund of foreign parts distribution. (7) the Commission's decision on the issue of the licence shall be adopted on the basis of the documents submitted under this law, the provisions of chapter II. In addition to the foreign Manager in conjunction with article 10 of this law the documents referred to in the Commission: 1) justification the choice of Latvia on the reference Member State and the Fund's investment strategy; parts distribution 2 the provisions of this law) list, which is incompatible with the legislation of the foreign State that followed a foreign Manager in the administration or in the existing foreign investment of the Fund in the Member States, parts distribution by proof that the foreign Fund Manager or foreign laws and regulations applicable to the equivalent regulatory objectives and ensure the laws of the Member States equivalent investor protection fund. This proof shall be based on the legal opinion on foreign laws and regulatory compliance objectives and investors of the Member States of the Fund regulations equivalent protection framework; 3) foreign Manager authorised legal entities and legal address of the company or an authorized physical person's name and address. (8) according to article 10 of this law the eighth part of the information to be provided relates only to the Member State in which the Fund established a foreign manager wants to manage, and a foreign Manager manages the Fund, the investment manager of a foreign part intends to distribute. (9) to the foreign Manager of the supervisory organ and Constitution of the country subject to article 72 of this law in the second part of these conditions. (10) in addition to article 17 of this law in the fifth part of the license referred to in cases of refusal the Commission decides not to issue a licence to a foreign Manager if the foreign laws and other regulations, as well as foreign supervisory authority's supervisory powers limits the right of the Commission to carry out this statutory supervisory functions. (11) the Commission shall immediately inform the European Securities and markets authority that examined the submission of licence applications, as well as the licences issued and withdrawn. If the Commission decided not to issue a licence for a foreign Manager, the European Securities and markets authority shall inform the foreign Manager and the reasons for the refusal. (12) If a foreign Manager two years after receiving a licence does not operate according to the Fund, submitted to the Commission the investment part of the dissemination strategy, has provided incorrect information about distribution strategy or change distribution strategy, in accordance with the procedure laid down in the law by not informing the Commission of the new determination of the reference Member State, the Commission shall require the foreign Manager determines other reference Member State in accordance with article 77 of this Act. (13) If, within two years of receipt of licence a foreign Manager change the Fund's investment strategy and parts distribution hence the reference Member State, it shall submit an application to the Commission that it consider this law, in article 77. (14) If a foreign Manager does not comply with the twelfth part of this article claims, the Commission revoke the licence issued to a foreign Manager. (15) the Commission and the foreign Manager in a dispute according to the Latvian legislation. A foreign Manager or Fund and the Member States of the Fund Investor disputes dealt with in accordance with the laws of the Member State concerned. 75. article. References the determination of the Member State (1) If a foreign Manager plans to manage one or more funds, the Member State which established it is, and do not intend to Latvia investments distributed according to this law, the Member States and article 79 78, the Manager is Latvia the reference Member State and the Commission shall be responsible for the issue of licences for alternative investment fund manager for action and monitoring. (2) If a foreign Manager plans to manage several funds in the Member States which are established in different Member States, including Latvia, and does not plan to fund part of this investment in the Member States according to the distribution of this law and article 78.79, the reference Member State considers any of the following Member States: 1) the Member State in which founded most of the Fund; 2) the Member State in which the biggest Fund is managed actively. (3) If a foreign Manager plans to distribute in Latvia shares of investment funds established in only one Member State, the reference Member State or Latvia considers that the Member States plan to distribute the Fund's investments. (4) If a foreign Manager plans to distribute only one foreign fund investment in Latvia, then part of the reference Member State considers Latvia. (5) If a foreign Manager plans to distribute only one in Latvia founded the Fund's investments in a number of Member States, the reference Member State or Latvia considers the Member State in which the Manager intends to pursue an active contribution to the part of the distribution. (6) If a foreign Manager plans to distribute only one foreign fund investments in several Member States, including Latvia, then after the Manager's choice of the reference Member State considers one of the Member States. (7) If a foreign Manager plans to distribute more of the Member States of the contribution of the funds in the Member States of the part, including Latvia, then the reference Member State considers any of the following Member States: 1) Latvia if it is all of these funds, the Member State or Member States of the Treaty, which planned to distribute investment shares, which account for most of the value of the Fund; 2) the Member State in which the investment plan to distribute the parts that form the Foundation of values most, if not all the funds only incorporation of Latvia State. (8) in the second, third, fifth and sixth and seventh part 1 in the case referred to in point a foreign manager who intends only to manage the funds of the Member States or to distribute it in the management of the Fund's existing investments in the Member States in accordance with the law and with article 78.79, shall submit an application for the determination of the reference Member State to all the supervisory authorities of the countries considered potential Manager reference for Member States, including Latvia. Foreign application Manager provides information on all those countries which it considers possible references to the Member States, as well as the reasons for the choice. (9) months after receipt of the application to the supervision authority shall decide on the definition and the reference Member State shall immediately inform the foreign Manager. (10) If a foreign Manager is not aware of the decision of the supervisory authority within seven days after the decision or when the decision is taken, the foreign manager chooses the reference Member State, having regard to the second, third, fifth and sixth and the seventh part of the criteria referred to in paragraph 1. (11) the foreign Manager after a management authority at the request of the Fund's investment strategy, the distribution of parts to support the foreign Manager's intention to expand the active contribution of parts distribution in the Member State in question. 76. article. As reference Member State of Latvia (1), if a foreign manager who plans to manage state funds only or also to distribute the funds it manages investments in the Member States in accordance with the law and with article 78.79, on the reference Member State shall determine the Latvia, it shall submit to the Commission an application with a request to issue a license to the alternative investment fund manager. (2) the Commission referred to in the first paragraph of the receipt of the application, consider whether a foreign Manager is defined by the reference Member State in accordance with article 75 of this law. If not specified by the reference Member State in accordance with this law, the requirements of article 75, the Commission during the month following the date of receipt of the application, shall take a decision not to issue a license. If the reference is a certain Member States in accordance with article 75 of the law's requirements, the Commission shall notify the European Securities and markets authority the application received and rated for the appropriate contact of the reference Member State. Communication to the European Securities and markets authority the Commission indicates the foreign Manager provided by the reference Member State shall check and add information about a foreign investment fund manager part of the dissemination strategy. (3) within one month of receipt of the communication from the Commission to the European Securities and markets authority shall provide to the Commission an assessment of the reference Member State to check compliance with article 75 of this law. (4) the date until which adopts this law, article 17 of the decision referred to in the first paragraph on the issue of the licence, shall be suspended until the European Securities and markets authority shall consider the Commission's communication. (5) the Commission shall take a decision on the issue of the licence for a foreign Manager, contrary to the European Securities and markets authority assessment, it shall inform the European Securities and markets authority of its decision, giving the reasons for its adoption. The European Securities and markets authority may share the reasons given by the Commission, the Commission is notified in advance. (6) where the Commission takes a decision on the issue of the licence for a foreign manager who plans to distribute it in the administration of the Fund, part of an existing investment in other Member States, except Latvia, contrary to the European Securities and markets authority's assessment, the Commission shall inform the Member States ' supervisory authorities, as well as fund management authority of the country of origin of its decision, giving the reasons for its adoption. If any of the supervisory bodies did not agree with the decision of a foreign Manager for the determination of the reference Member State, to the settlement of the dispute are entitled to turn to the European Securities and markets authority. (7) the reference Member State shall check the agenda determined directly applicable European Union legislation. 77. article. Change of the reference Member State (1) If a foreign Manager changes the Fund investment strategy of distributing part of the two year period following the first discovery of the reference Member State and following a strategy first affect the choice of the reference Member State, before a foreign Manager for strategy changes immediately be submitted to the Commission an application for the change of the reference Member State. The application shall be accompanied by the contribution from the funds of the new parts distribution strategy, the information for the new Member States, as well as reference information about the authorised representative of a foreign Manager in the new reference Member State. (2) the Commission referred to in the first paragraph of the receipt of the application, consider whether a foreign Manager is defined by the reference Member State in accordance with article 75 of this law. The Commission shall notify the European Securities and markets authority and asked for submissions received on the relevant determination of the reference Member State. Communication to the European Securities and markets authority the Commission indicates the foreign Manager provided by the reference Member State shall check and add information about a foreign investment fund manager part of the dissemination strategy. (3) within one month of receipt of the communication from the Commission to the European Securities and markets authority shall provide to the Commission an assessment of the reference Member State to check compliance with article 75 of this law. (4) the Commission shall adopt a decision on the definition and the reference Member State shall immediately inform the foreign Manager, its authorized representative and the European Securities and markets authority. (5) the Commission shall send the Member States the new reference for surveillance authority decision on the change of the reference Member State, the decision on the grant of a licence, as well as foreign Manager monitoring case, copies of the documents. (6) If the Commission accepts in part four of this article that decision contrary to the European Securities and markets authority ratings further exchange of information on the decision taken is going on this law, article 76 of the fifth and sixth part. 78. article. Licensed foreign Manager in Latvia the right to distribute the investment of the Fund of the Member State (1) if the licensed foreign Manager in Latvia wants to distribute it in the administration of Member State contributions to the Fund in Latvia, this part shall submit to the Commission a statement, adding this law article 66 the third paragraph of the mentioned documents. Notice the look of this law, in article 66. (2) If a licensed foreign Manager in Latvia wants to distribute part of the investment of the Fund of the Member State in the territory of another Member State, it shall submit to the Commission statement, adding article 67 of this law as provided for in the third subparagraph. Notice the look of this law, in article 67. Article 79. Licensed foreign Manager in Latvia of rights to distribute foreign fund investments in the Member States (1) licensed foreign Manager in Latvia provides to meet all the requirements of this Act established State Manager, as well as additional to the Commission and the foreign country of incorporation of the Fund are to apply this law 72. in the second paragraph of article These conditions. (2) If a licensed foreign Manager in Latvia wants to distribute it in the management of existing foreign investment shares of the Fund in Latvia, it shall submit to the Commission a statement, adding this law article 66 the third paragraph of the mentioned documents. Notice the look of this law, in article 66. (3) if the licensed foreign Manager in Latvia wants to distribute it in the management of existing foreign investment shares of the Fund in another Member State, it shall submit to the Commission a statement, adding this law article 67 referred to in the third subparagraph of documents drawn up in the language used in the international financial field. Notice the look of this law, in article 67. (4) Member State licensed foreign Manager may distribute foreign fund investments in Latvia in accordance with the rules laid down in article 68. 80. article. Established in another Member State of the Fund managed by licensed foreign Manager in Latvia (1) Latvia licensed foreign Manager may manage funds established in another Member State directly or through affiliates, the Commission is authorized by the Manager to implement the following its successful investment strategy of the Fund. (2) a foreign manager shall submit to the Commission an application and other documents under article 69 of this law, and the Commission shall examine in the manner set out in that article. (3) the Commission shall inform the European Securities and markets authority of the decision taken to allow Latvia licensed foreign Manager to manage a fund established in another Member State. (4) licensed in another Member State may be a foreign Manager to manage a fund established in Latvia, either directly or through affiliates in article 70 of this law. Chapter XII. Surveillance and the rights and obligations of the Commission article 81. General prudential rules (1) the Commission is responsible for its licensed Manager, registered manager supervision, the supervision of the manager who wants to use the name "European venture capital fund, in accordance with Regulation No 345/2013, the Manager of surveillance, which wants to use the name" European Social Fund "of the business in accordance with Regulation (EC) no 346/2013, and supervision of the custodian in accordance with this law, directly applicable European Union law, the law of credit institutions Financial and capital market Commission rules and regulations governing the financial instrument markets. The Commission is also responsible for the administration of a Member State of the Manager of the Fund or the Fund's investment in foreign parts distribution monitoring in Latvia. (2) for the purpose of surveillance is to make sure the formation and activities of the Manager in compliance with this Act and the regulations, issued in accordance with this law, limit the rights of people without proper permissions to perform this Act regulated activities, and to ensure the normal functioning of the stock market, if one or more of the activities of the Fund, one of the financial instruments in the market may threaten the normal functioning of this market. (3) the Commission, its staff and Governors are not responsible for losses incurred by the Fund Manager, or third parties, the Commission, its staff and Governors can not be held accountable for the actions that they are legal, accurate, reasonably and in good faith made duly fulfil the supervisory functions in this law and other laws. (4) the Commission's administrative act issued under this Act may appeal to the administrative court. The court case as a Court of first instance. The case is being heard in the three judges. Administrative District Court judgment may be appealed by submitting an appeal in cassation. (5) the Commission's appeal against the administrative act issued in court does not stop if the Commission issued the administrative act is a decision that provides: 1) limit the Manager or custodian; 2) prohibit Manager officer in carrying out its duties; 3) prohibit to acquire or increase qualifying shareholdings in the Manager; 4) prohibit the use of the voting rights; 5) prohibit the administration of the Fund be delegated or ancillary services; 6) prohibit the transfer of the Fund management rights to another Manager; 7) cancel the licence issued by the Manager of the alternative investment fund manager; 8) to cancel the registration of a Manager; 9) turn off the manager who wants to use the name "European venture capital fund, in accordance with Regulation No 345/2013, European venture capital fund in the register; 10) turn off the manager who wants to use the name "the European Social Fund in the business" in accordance with Regulation (EC) no 346/2013, the European Social Fund in the business register; 11) to initiate liquidation of the Fund; 12) prohibit the investment part of the distribution. (6) the Commission has the right to publish the information on the measures taken and the sanctions adopted against the Manager, the officers, shareholders (participants) and the custodian of law violation except where such disclosure could cause serious disturbances in the financial markets, investors ' interest to harm or cause disproportionate damage to the parties involved. (7) in order to ensure the monitoring of the Operations Manager, the Commission is entitled to: 1) arrive at the Manager's custody inspection (without prior notice); 2) free to consult all documents and information relating to the operation of the Fund Manager's administration; 3) temporarily remove documents about it in drawing up the legislation, if it is found during the inspection of the Manager, custodian or the Fund's activities; 4) extracts from documents, request to Manager bill prepared copies of documents, certified copies of documents or transcripts; 5) require information from any person on the operation of the financial and capital market, where the Commission has reason to believe that that person is related to the financial and capital market laws regulating a possible violation or it could be a violation of the conditions for necessary information; 6) writing to request and receive from the Manager, the custodian, the Bank of Latvia, the commercial Manager of the authority, or sworn auditor, Fund Manager, but the Manager of the liquidation or insolvency of the legal person, also in the context of the liquidator or administrator for information about the Manager and the operations of the Fund; 7) require in writing this article, the persons presented documents at their disposal for the Manager and the Fund; 8) if there is reason to believe that the person is associated with the alternative investment fund manager in the operation of the laws governing a possible violation or it could be a violation of the conditions for the necessary information required by the Commission to this law enforcement monitoring, require that person: (a)) provides the documents and information, including those containing trade secrets, (b) and provide the Commission arrive) the information on-the-spot; 9) fix reasonable deadlines, which in paragraph 8 of this article, the person shall provide the requested information or explanation, the Commission arrives; 10) to request and receive from the financial and capital market participants in the telephone listings, and other types of data records; 11) require any person to stop any activity that is contrary to the requirements of this law; 12) require that the Manager be frozen and the assets of the Foundation, or to restrict the right to deal with them; 13) limit the Manager to provide regulatory services; 14) if necessary for investor or for the protection of the public interest to require the investment part of the emissions, sales, atpakaļpirkšan and take-back suspension; 15 law enforcement agencies) to submit information on the activities of the financial and capital market, which is contrary to the requirements of this law; 16) to revoke the license issued to a Manager; 17) to cancel the registration of a Manager; 18) decide to fund the opening of winding-up proceedings; 19) instruction to the Manager to change the custodian; 20) fix lever funding limits; 21) prohibit the distribution of the investment share; 22) prohibit the Manager to manage the Fund pursuant to the Fund's specific investment strategy selected; 23) request to manager prepares the supervisory functions of the required reports, and identify this report preparation and submission; 24) to take the necessary legal measures to ensure that the Manager and the custodian continues to fulfil the law, directly applicable European Union legislation and the Commission's regulatory rules. Article 82. Payments to finance the activities of the Commission (1) the manager shall take the financing of activities of the Commission payments amounting to: 1) licensed Manager-up to 0.033 interest including from the funds it manages an average of about a quarter of the assets, but no less than 2500 litres per year; 2) registered manager-up to 0.033 interest including from the funds it manages an average of about a quarter of the assets, but no less than 2000 lats year. (2) in addition to the first paragraph of this article Manager Commission payments paid: 1) for the consideration of documents submitted for registration: 1000 lat; 2) on registration submitted to the Fund rules or instruments of incorporation of the amendments to the hearing: 300 Lats. (3) the Member State of the branch managers established in Latvia, the Commission shall pay for the monitoring of the activities of the branch up to one percent of the branches in Latvia, including the Foundation provided management services gross revenue in the quarter, but not less than 1500 lats year. (4) the Manager for each Member State the management of the Fund or foreign investment fund distribution monitoring part of Latvia Commission paid 850 dollars a year. (5) the Commission shall issue regulatory provisions on the first, third and fourth part payment calculation and reporting procedures. (6) in the first, third and fourth payments referred to by the following quarter, the Manager of the month on the 30th. (7) in the second paragraph of this article, these payments to the supporting documents shall be submitted to the Commission at the same time the Manager of the Fund's registration or the operations of the Fund rules or instruments of incorporation of the amendments to the documents submitted for registration. (8) On the first, third and fourth part of that payment or remittance missed the full calculation not of money 0.05% of the unpaid amount for each delayed day. (9) in this article, including the payments referred to in the Commission's account within the Bank of Latvia. 83. article. Restrictions on the right to dispose of the assets of the Fund Manager and (1) if there is a breach of the law, the articles of incorporation of the Fund, the custodian agreement or the provisions of the Fund's activities, the Commission is entitled to obtain from credit institutions and investment firms for information on Manager or Fund cash flow and account balance and restrict the Manager the right to manage the Manager or fund assets. (2) Commission decision referred to in the first subparagraph restrictions enforceable immediately upon its receipt. (3) the costs of the accounts covered by the Commission's decision to limit the Manager the right to manage with them for the duration of the decision are made only with the permission of the Commission. 84. article. To the right of the Commission to request the convening of the meeting of the administrative organ (1) the Commission has the right to be called the fund investors (shareholders or members) meeting, Board meeting, Manager, Board meeting or a meeting of shareholders, and to specify in advance the agenda. (2) the first paragraph of this article of the fund investors (shareholders or members) meeting, Board meeting, Manager, Board meeting or a meeting of shareholders may participate in the representative of the Commission and has the right to express their views and submit proposals. 85. article. Restricted access information (1) the information received by the Commission from a Member State or the institution of the foreign surveillance supervisory functions, considered as restricted access information. (2) the first paragraph of this article may disclose the information to third parties, for which it required statutory functions, only with the foreign supervisory authorities prior written consent and only for the purposes for which the supervisory authority has agreed to disclose the information. (3) the Member State or foreign supervisory authorities receive restricted access information, the Commission shall be entitled to use: 1) in order to verify the information manager of the licence; 2) in order to ensure that the custodian or Manager is complying with legislative requirements; 3) in order to apply the sanctions provided for in this law and restrictions; 4) the proceedings in which the judgment under appeal, the Commission issued administrative act or actual action. (4) the second and third subparagraphs set out restrictions on the use of the information does not prevent the Commission to provide limited accessibility information: 1) the authorities responsible for the supervision of credit institutions, investment management company, the Manager of the funds, insurance companies, other financial institutions and financial and capital market national surveillance; 2) persons responsible for the Manager, the Fund or the provision of government services to those involved in the liquidation or insolvency proceedings; 3) persons who, in accordance with the authorisation of the supervisory organ shall take the statutory Manager of the Fund, the supervision of credit institutions, insurance undertakings and other financial institutions; 4) the European Securities and markets authority, the European banking authority, the European insurance and occupational pensions authority and the European systemic risk Board. (5) the Commission shall provide restricted access information Bank or national central banks of the Member States, or other bodies, if it requires the operation of regulatory provisions set out in the regulatory functions. (6) the provisions of this article shall not preclude a Commission to provide limited accessibility information for the organizer of the regulated market, Latvian Central Depositary or authorities which a Member State ensures the clearing and settlement of transactions in financial instruments, if it considers that the provision of such information is necessary to ensure the proper conduct of those institutions in cases where a settlement or clearing system participants fail to fulfil their obligations or have reason to believe that they do not fulfil their obligations. 86. article. Responsibility for the supervision of the Manager (1) the Commission is responsible for Latvia and Latvia the licensed Manager licensed foreign Manager monitoring regardless of whether the manager made the management of the Fund or of the investment of the Fund distributed part of Latvia or another Member State. The Commission is responsible for the State supervision of the licensed Manager this law, first paragraph of article 22 and article 23 requirements, to provide Fund Administration in Latvia services through affiliates. (2) a management authority of the Member State is entitled, on its own initiative or at the request of the Commission to carry out an inspection of this law, the first paragraph of article 22 and article 23 within the licensed Manager in Latvia branch, who works in the territory of the Member State concerned. (3) the Commission may, on its own initiative or management authority of the Member State concerned to carry out an inspection at the request of the law on the first paragraph of article 22 and article 23 within the Member State-licensed branch manager who works in Latvia. (4) the Commission is entitled to request from the Member State licensed Manager, who manages the Fund in Latvia provides services to the branch or the branch opening, all the information about the Manager was required to the Commission this law, first paragraph of article 22 and article 23 compliance monitoring requirements. (5) if the Commission finds that the Member State licensed administrator, who manages the Fund in Latvia provides services to the branch or opening an affiliate violates this law, first paragraph of article 22 or article 23, it shall require the relevant Manager shortcomings noted irregularities, and shall inform the management authority of the Member State concerned. (6) in the case of this article fourth and fifth cases referred to state licensed Manager does not provide the information or does not comply with the instructions of the Commission, the Commission shall inform the management authority of the Member State concerned on the irregularities found and asked to take the necessary measures to ensure that the Manager or the prevents the information requested by the Commission. A management authority of the Member State shall inform the Commission of the measures taken, as well as provide the Commission requested from the relevant foreign supervisory authorities the information necessary for the supervision of the Manager. (7) If, despite the management authority of the Member State concerned and the Commission of the measures taken, the Member State licensed Manager continues to violate this law, the Commission issued rules and regulations directly applicable European Union law, the Commission, after informing the supervisory authorities of the Member State to take the measures provided for in this Act for the provision of supervision to prevent future abuses, the Manager or apply the sanctions provided for in this law and restrictions. The Commission has the right to prohibit the future Manager of the Fund in Latvia. (8) If the Commission has information that the Manager breaking it into European law requirements for fund management services, compliance with which is supervising the management authority of the Member State, the Commission shall inform the management authority of the Member State concerned. (9) if the Commission receives from another Member State supervisory authorities information that licensed Manager in violation of the laws and requirements for fund management services where the monitoring of compliance with the competence of the Commission, the Commission shall, within the limits of its competence take the necessary steps to prevent any irregularities, and the following information shall inform the requesting Member State supervisory authority. (10) If, notwithstanding this article, part of the ninth Manager management authority of the Member State of origin of the measures taken, the Member State licensed Manager continues to operate in violation of the legitimate interests of investors and the threat to Latvian financial stability and integrity of the market, the Commission, after the Manager of the home Member State supervisory authority has the right information to take the measures provided for in this Act to ensure the monitoring, in order to protect the legitimate interests of investors and the Latvian financial market stability and integrity. The Commission has the right to prohibit the Manager in Latvia to distribute further funds for investment. (11) this article is the ninth and the tenth part of the monitoring activities referred to in the Commission is entitled to apply, even if it does not agree with the decision by the reference Member State to issue a license to a foreign Manager of the alternative investment fund manager. (12) if the Commission, which is the supervisory authority of the reference Member State: Latvia licensed foreign manager finds such a foreign Manager was in violation of the law, so with the reasoned report shall inform the European Securities and markets authority. (13) If the Commission does not agree with the Member State referred to in this article for supervisory measures and decisions, it has the right to apply to the European Securities and markets authority. (14) if the Manager of the transactions may be compromised due to the European Union, the proper functioning of the financial market and the integrity of the financial system or part of a stability, as well as if the Commission has already taken all necessary measures to prevent the activities of the Manager related threats, but they are not properly resolved, the Commission shall, on the basis of the European Securities and markets authority, adopt one of the following decisions: 1) prohibit the licensed foreign Manager in Latvia for the Member States to distribute the funds it manages the investment part If this is not done in chapter XI of this law, including article 78 and 79., requirements, or Latvia licensed Manager to distribute it in the management of the Fund's existing foreign investment section, if it has not fulfilled the requirements of article 72 of the law; 2) apply the foreign Manager of regulatory restrictions, the Fund if the market segment at cross-border level is found to be excessive risk concentration; 3) apply a foreign Manager to manage the Fund's restrictions, if any steps can cause the counterparty risk of the credit institution or other systemically relevant financial institutions. (15) the decision on the operational restrictions are specified in the constraint type and duration, which shall not exceed three months. The European Securities and markets authority every three months to assess the foreign Manager of the administration of the Fund limit the impact on the European Union's financial market integrity and stability, and the Commission, following the European Securities and markets authority shall decide on the need to extend the regulatory limits of the Fund. (16) the Commission is entitled to adopt a decision to extend the administration of the Fund Manager of the limitation of the time, if still not resolved financial market risk the orderly functioning and integrity of the financial system or part of a stability, Manager continue to make the administration of the Fund in a Member State with a more favourable framework for market surveillance or the activities of the Fund continues to negatively impact the financial market efficiency, reducing the liquidity, or generate significant financial market uncertainty about the market situation. Chapter XIII. Exchange of information article 87. Cooperation in the field of exchange of information (1) the Commission is responsible for cooperation with national supervisory authorities and the European Securities and markets authority and the European systemic risk Board, to ensure the immediate exchange of information on the Latvia licensed Manager Administration and monitoring of the provision of services within the territory of all the Member States. (2) the Commission shall, on the basis of a reasoned request, Member States shall provide the management authority or the European Securities and markets authority information on licensed Manager in Latvia who provide administrative services in the Member State concerned or has a close relationship with a Member State licensed or authorized manager or member of the Council or owner (the true beneficiary). The Commission is right to point out that this information may be shared with third parties, for which it required statutory functions, only with the written consent of the Commission. (3) the Commission shall provide the Manager of the host Member State, the supervisory authority a copy of the agreement, by the Commission, the foreign Manager and the supervisory organ of the Fund concluded on cooperation, the exchange of information and implementation of supervisory functions, as well as send information about the Manager received from the foreign Manager of the supervisory organ under the cooperation agreement. The Commission shall also be entitled to provide information on the activities of the foreign Manager in Latvia, pursuant to article 86 of this law in the seventh, eighth and ninth part of these provisions. (4) If the Commission considers that the Manager in question in the Member State of origin of the supervisory authorities referred to in the third subparagraph of the agreement does not comply with the European Securities and markets authority adopted technical standards for supervisory authorities the principles of cooperation, the Commission has the right to apply to the European Securities and markets authority with a request to examine this agreement. (5) If the Commission has information that the Manager, which is not subject to its supervision, an activity which is contrary to European Union law on alternative investment fund managers in the field, the Commission shall inform the European Securities and markets authority and the Manager of the home Member State and host Member State supervisory authorities. Manager of the Member State of origin and the host Member State's supervisory authorities shall take all the necessary measures and the monitoring of results shall inform the European Securities and markets authority and the Commission. 88. article. Data transfer and storage (1) the Commission has information that contains an individual's data, other Member States or foreign supervisory authorities shall forward, within the individual data protection requirements. (2) the Commission shall provide the Member State concerned, the supervisory bodies, the European systemic risk Board and the European Securities and markets authority required under the first paragraph of this article if the information is necessary for one or more of the activities impact monitoring of managers to ensure systemic stability of related financial institutions and markets in which the Manager or managers running. The content of the information to be determined directly applicable European Union legislation. (3) the Commission referred to in the first subparagraph information shall be kept for one year. (4) the Commission, after considering the request sent to it by foreign supervisory authorities, provided that the supervisory authority, the requested information (personal data, or data analysis), if such a request is legitimate grounds are met the data protection requirements for the transfer of personal data to foreign authorities, as well as information (personal data, or data analysis) is required to prevent the Manager operational risk potential negative effects on the financial system. The Commission's reply indicates that the foreign supervisory authorities that information may not be disclosed without the other surveillance authority in another foreign country require the foreign statutory functions only with the prior written consent of the Commission, and only for the purposes specified in the written consent of the Commission. (5) the Commission shall forward to the supervisory authority of the foreign State, the supervisory authorities of this article received the information referred to in the first subparagraph only if the Member State concerned, the supervisory organ has agreed to, in writing, that information may be disclosed to foreign supervisory bodies, which it requires statutory functions, and only for the purposes specified in the relevant national supervisory authorities written consent. Article 89. Cooperation in surveillance (1) the Commission is entitled, on its own initiative or at the Manager's home Member State supervisory authorities to carry out inspections at the request of another Member State of the Branch Manager, licensed operating in Latvia. Manager of a branch of a management authority of the State of origin shall have the right to carry out the same test in Latvia or the Manager authorize another person to perform this examination, the Commission is notified in advance. (2) Before an inspection such a licensed Manager in Latvia, a branch within the territory of another Member State who provides services to the management of funds, the Commission shall inform the management authority of the Member State concerned. (3) if the Commission inspection is authorised in another Member State of the branch in Latvia after the Manager, the supervisory authority, the supervisory body of the Member State shall have the right to participate in this examination, subject to the Commission's instructions. (4) If a licensed in another Member State of the Branch Manager in Latvia are inspecting management authority of the Member State concerned, the Commission is entitled to participate in this examination. (5) the Commission has the right to a reasoned decision to refuse a management authority of another Member State's request to allow to carry out the territory of Latvia, as well as to refuse a request to allow other management authority of the Member State authorised representatives to participate in the test, if: 1) such examination or other supervisory authorities of the Member State authorised the participation of the representatives of the Latvian adversely affects the sovereignty, security or policy; 2) for the same offence in Latvia and against the same persons have already launched legal proceedings; 3) for the same offence and the same persons have already entered into force the judgment of the Court of Justice. Chapter XIV. Article 90 of the sanctions. Liability (1) the Commission is empowered to impose custody of Manager and fines from 10 000 to 100 000 lats for the following offences: 1) of this Act and on the basis of this law in the Commission issued rules and regulations directly applicable European Union legislation and news, as well as the documents submitted and the news not made submission to the laws in the order and within time limits set by the Commission; 2) for false declarations to the Commission or the public dissemination of such messages; 3 things posted by the Fund) and storage offences; 4) of the investment portion of the emissions, and atpakaļpirkšan take-back provisions; 5) on liquidation of the Fund Manager or policy violations; 6) that is not provided in this legal opportunity to become acquainted with the information provided for the Fund's investors. (2) On the alternative investment fund manager without a licence from the Commission or the Commission for the registration of the party managers to impose fines of between 10 000 and 100 000 lats. (3) the portion of the contribution from the funds distribution without the permission of the Commission, or on the part of the distribution of the investment provisions of the Commission is entitled to impose a fine on the person of 1000 to 10 000 lats. (4) distribution of investment part of the person who is not an investor within the meaning of this law, the Commission has the right to part of the investment dealer, impose fines of from 1000 to 10 000 lats. (5) for actions that result in a breach of the legislation on the crime of money laundering and terrorist financing, the Commission imposed a fine of Manager from 5000 up to 100 000 lats. (6) the Commission has the power to impose fines for the person from 10 000 to 100 000, if a person acquired or increased a substantial participation in the Manager before this law article 12 the second or the fourth part of the notification referred to in the Commission or a hearing. (7) if the person does not provide the Commission with information or fails to provide information to the Commission and by this law, in the presence of article 81 of the seventh part referred to in paragraph 8 of the Commission's request, the Commission is entitled to make that person a warning or impose fines of up to 10 000 lats. (8) Of Regulation No 345/2013 or article 21 of Regulation No 346/2013 22. the infringements referred to in article the Commission is entitled to impose a fine Manager from 10 000 to 100 000 lats. (9) On other non-compliance of this law, the Commission has the right of a person who has not complied with its obligation to warn or impose fines of up to 10 000 lats. 91. article. Collection of fines (1) fines levied for violations, which it imposed in accordance with article 90 of this law, the provisions are credited to the State budget. (2) the Commission imposed a fine on the person in charge not later than one month from the date of entry into force of the Commission decision on the imposition of fines. (3) voluntarily comply with the Commission decision of forced execution shall be carried out by a bailiff of the civil procedure law. 1. Transitional provisions this law, article 16, first paragraph of the determination of the initial capital shall enter into force on January 1, 2014. 31 December 2013 this law used the term "initial capital" means capital consisting of: (a) share capital), reduced by the value of the preference shares with a dividend accrual, b) shares or share premium account, c) reserves (excluding revaluation reserves), d) previous years retained earnings or loss in current operations, e) annual profit, if it is certified auditor's report on the existence of profit and its calculated taking into account all the necessary provisions for impairment of assets, estimated tax payments, and dividends, and the Commission has agreed to the current year's profit for inclusion in the initial capital. 2. Article 16 of this law, the sixth part of the equity and calculation for the entry into force of 1 January 2014. 31 December 2013 this law used the term "equity" is the Manager of the audited financial statements reflect capital, reserves and liabilities elements that are freely available to the Manager with operational risks associated, but not yet identified to cover the potential losses, and calculation procedure of the Commission. 3. the commercial companies law, the entry into force of this law, the activities set out in article 5 of this law, within a period of one year from the date of entry into force of the terminated this operation, carried out the liquidation of the Commission register or receive license alternative investment fund manager. 4. Chapter IX of this law shall not apply the requirements of the Fund's investments for distribution and administration of the Fund, the Fund's contribution to the part of the public offer prospectus is drawn up in accordance with the financial instruments market law and registered before the date of entry into force of the law. These requirements do not apply until a prospectus is valid. 5. Article 72 of this law and the entry into force of chapter XI established directly applicable European Union legislation. 6. The investor who does not comply with article 9 of this law in the first and second paragraphs of article 41 of the seventh, eighth, and ninth in the part, but this characteristic of the law into force has made a contribution to the Fund established in the closed, according to the investment management community law, or made or undertaken investment to make a contribution to the Fund, which will be considered as the alternative investment fund within the meaning of this law, and not founded according to the investment management community law may be forfeited to or without increasing the level of participation, to keep its investment part of the Fund to the Fund's founding document, the prospectus or the Fund rules of operation of this Act on the date of entry into force of the proposed funds expire. 7. Commercial companies that the administration of this Act on the date of entry into force of existing closed funds are established according to the investment management community law within one year from the date of entry into force of the law carrying out the liquidation of the funds or the registration under this law. 8. Commercial companies that manage the funds, which are recognizable as alternative investment funds within the meaning of this Act and which has not established according to the investment management community law within one year from the date of entry into force of the Act shall be provided to the Commission an application for registration of the Fund. 9. Closed investment funds established according to the laws of the investment management company that recognizable on alternative investment funds within the meaning of this law, and which this law enters into force accounting and the financial statements are prepared in accordance with the laws of investment management company, the investment management company statutory accounting sort and basis of preparation of the financial statements applicable to the operations of the Fund. 10. After the entry into force of this law, the transitional provisions of paragraphs 7 and 8 of the company referred to in these points to distribute that part of the contribution from the funds only in article 41 of this law in the seventh, eighth, and ninth in the part investors. 11. The transitional provisions in paragraph 7 and 8 of the managers referred to make payments for those points that the Fund's handling of documents submitted for registration or the registration submitted to the Fund rules or instruments of incorporation of amendments, if these documents are not submitted to the Commission within one year from the entry into force of this law, but later in the day. 12. Commercial companies which are managed according to the investment management company founded in law and in closed funds after the entry into force of this law intends to amend the regulations of the said fund management or prospectuses, developed and submitted to the Commission for the administration of the Fund documents in accordance with article 10 of this law the eighth part. 13. Until the introduction of the euro, article 3 of the law on the agenda of the first part of the introduction of the euro laid down in this law for the day these amounts of money that are expressed in euro, be considered to be equivalent to the amounts expressed in dollars, in accordance with the rates set by the Bank of Latvia. Informative reference to European Union directives, the law includes provisions resulting from: 1) of the European Parliament and of the Council of 8 June 2011 the 2011 EU directive/61/about alternative investment fund managers and amending Directive 2003/41/EC, directive 2009/65/EC, Regulation (EC) No 1060/2009 and Regulation (EC) No 1095/2010; 2) of the European Parliament and of the Council of 21 may 2013-2013/14/EU directive, amending Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision, directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) and 2011/61/EU the alternative investment fund managers in relation to the excessive reliance on credit ratings. The Parliament adopted a law in July 9, 2013. The President a. Smith 2013 in Riga on July 24.