Amendments To The Law Of Financial Conglomerate

Original Language Title: Grozījumi Finanšu konglomerātu likumā

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Read the untranslated law here: https://www.vestnesis.lv/op/2013/106.4


The Saeima has adopted and the President promulgated the following laws: the law of the financial conglomerate in financial conglomerates Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 2005, nr. 14; Latvian journal, 2012, 56 no). the amendments are as follows: 1. Article 1: to replace the word "bank" (fold and number) with the words "credit institution" (in the fold and number); Add to paragraph 1, after the words "insurance company" with the words "reinsurance company, the alternative investment fund manager, investment management company"; make paragraph 8 by the following: ' 8) group — a group of companies consisting of the parent company, its subsidiary companies, commercial companies in which the parent or the subsidiary has a presence, or commercial companies, whose relationship with the parent company, subsidiary company or companies in which the parent or the subsidiary has a membership, these companies manifested as common management in accordance with the signed agreement of the company or the memorandum or articles of association provisions or so that during the financial year, at least half of any governing body members are one and the same person. Company group can contain any subgroup; "; Add to paragraph 11, after the words "insurance company" with the words "reinsurance company, the alternative investment fund manager, investment management company"; express the following paragraph 13: "13) risk concentration — all exposures with a loss potential can endanger the financial conglomerate solvency of regulated company or financial situation. Such transactions might be associated with a transaction, the credit risk (including counterparty risk), investment risk, insurance risk, market risk, other risks, or a combination of these risk interact; "; make the following paragraph 16: "16) significant supervisory body, the supervisory body that meets one of the following requirements: (a)) it is responsible for financial conglomerates of the regulated company within (especially the sector parent company) consolidated supervision, b), c) the Coordinator, it is important to recognize the supervisory body of point" a "and" b "body referred to, taking into account the financial conglomerate within the regulated company market share (in particular in the Member State concerned If it exceeds five percent) and any financial conglomerate within the Member State concerned of the company sponsoring the business importance of regulated financial conglomerates. "
2. Add to the first paragraph of article 3 paragraph 5 with the following: "5) alternative investment fund managers."
3. To make article 4, first and second subparagraph by the following: "(1) The financial conglomerate is considered a group or subgroup, which simultaneously meet the following characteristics: 1) group or subgroup is headed by a regulated company, which is the parent company of the company, which operates in the financial sector, or a company that has a relationship with a company in the financial sector; 2) at least one of the groups or sub-groups under the companies Act, the insurance sector and at least one credit sector or investment services sector; 3) subgroup within the group or insurance companies and credit institutions of the sector and the investment services sector activity is important for a company of this law or in article 5. (2) The financial conglomerate also group or subgroup that is not headed by a regulated company in, if at least one of the subsidiaries of the group or subgroup is regulated in the company and the group or subgroup meets the first part of this article 2 and 3 set out in point and works mainly in the financial sector of the third paragraph of this article. "
4. in article 5: replace the word "bank" with the words "credit institutions"; to complement the text of the third part with the following: "investment management company or the investment fund manager shall be included in the financial sector in which it operates within the group. If the investment management company or the Fund Manager operates several financial sectors within the group, it will be the smallest in the financial sector. " adding to eighth after the words "indicators of income" by the words "total assets under management".
5. in article 6: replace the word "bank" with the words "credit institutions"; to make a fifth by the following: "(5) If the activity of the group or of the insurance sector in the sector of credit institutions and the investment services sector is not significant in this law or in article 5 of part two of the first sense, but is considered an important first part of this article and all of the financial conglomerate in the regulated company in Latvia, is located in the financial and capital market Commission may decide not to recognize the group as a financial conglomerate, or allow a 15 of this law. 16. the requirements of article 17 and, if the application of the supplementary supervision to the group is not required or its application would be misleading pursuant to this law, the objectives of the supplementary supervision as defined in. "; to make the seventh subparagraph by the following: "(7) in the fifth paragraph of this article, the procedure referred to in the company's recognition as a group, a financial conglomerate shall also apply if the activity of the group or of the insurance sector in the sector of credit institutions and the investment services sector is important in this law or in article 5 of part two of the first, but the smallest financial sector in the Group's total assets do not exceed six billion euros." Supplement to the eighth article as follows: "(8) the decision taken under this article the fifth or seventh paragraph, notify the supervisory bodies of the Member State in which the regulated companies in the group have received the license. Financial and capital market Commission shall immediately publish any decision on its home page in the Web site. If the emergency decision immediate publishing homepage Web site is not possible, the Financial and capital market Commission decision will be published as soon as possible. "
6. Supplement article 8 the third paragraph after the words "financial and capital market Commission informed" by the words "European supervisory authorities and the Joint Committee". 7. in article 9: to make the first part of paragraph 1 by the following: "1) of the Act 14 of the cases provided for in the first subparagraph may disregard any of the constituent group regulated companies, determining whether the activity of the group or of the insurance sector in the sector of credit institutions and the investment services sector shall be considered to be significant. If such a regulated company in the Group has changed the State of registration of the foreign State to avoid its inclusion in the calculation of capital adequacy, financial and capital market Commission of this paragraph shall not apply in the first sentence of that provision; "; to supplement the first part with points 3 and 4 by the following: "3) may not take into account one or more of the membership of the smallest financial sector if this membership is important to the Group on recognized financial conglomerate, but at the same time not important for the application of the supplementary supervision of financial conglomerates under the regulated companies; 4) each year from new exemptions from the assessed additional monitoring and review of the application of this law certain quantitative indicators and risk-based assessments applicable to the financial groups. "

8. Supplement article 10 with the sixth part as follows: "(6) in order to ensure compliance with the requirements of this Act relating to cooperation with other national and foreign institutions, as well as the monitoring of this article and in article 20 of this law requirements, financial and capital market Commission, if it is the Coordinator, subject to the order, the limited availability of the exchange of information between the supervisory bodies, and directly applicable European Union legislation requirements cooperate and agree on the coordination of activities to create a College of supervisors, as well as the cooperation agreements concluded with foreign supervisory bodies as referred to in the third subparagraph, the coordination of the activities of the decision-making process and the additional responsibilities entrusted to them under the supervision of the business of credit consolidation at group level and the insurance and reinsurance group supervision in accordance with the relevant sector regulatory actions to the requirements of the law. " 9. Express article 11, first paragraph, point 3 as follows: "3) the financial conglomerate's parent company whose registered office is in Latvia, is a mixed financial holding company and the parent company of a number of regulated companies, of which at least one license issued by the financial and capital market Commission;". 10. in article 17: make the fourth subparagraph by the following: "(4) the financial and capital market Commission and the business of insurance supervision requirements controlled in accordance with article 3 of the law subject to supplementary supervision in the company, which is part of a financial conglomerate, the Coordinator of which is the financial and capital market Commission, the appropriateness of the risk management processes and internal control system, which allows you to obtain additional data necessary for monitoring and information."; to supplement the article with the fifth and sixth the following: "(5) The financial conglomerate's flagship company, which is the Coordinator of financial and capital market Commission, to immediately inform the financial and capital market Commission of any changes in the legal, financial conglomerate regulatory and organisational structure, including all of the regulated company, unregulated subsidiaries and affiliates. (6) The financial conglomerate's flagship company, which is the Coordinator of financial and capital market Commission, on a regular basis, but no less than annually make public information on the legal, financial conglomerate regulatory and organisational structure, choosing the appropriate media and space, or provide indications on the availability of such information. The Web site is considered a suitable location to insert. " 11. Turn off the title of chapter IV, the word "foreign". 12. Put the second subparagraph of article 20 (1) of the following: "1) group legal, regulatory and organisational structure, including a financial conglomerate in the regulated company, unregulated subsidiaries and branches, people who have a significant interest in the parent company of extreme level, as well as oversight bodies that supervise financial conglomerate in the regulated company;". 13. To supplement the law with article 24 as follows: "article 24. If the financial and capital market Commission's coordinator, the European supervisory authorities shall be submitted to the Joint Committee article 17 of this law in the fourth, fifth and sixth part, as well as article 20 of part two, the information referred to in paragraph 1. " 14. Add to the informative reference to directives of the European Union with paragraph 3 by the following: "3) of the European Parliament and of the Council of 16 November 2011 the 2011 EU Directive/89/, with regard to a financial conglomerate in the supplementary supervision of financial firms amending Directive 98/78/EC, 2002/87/EC, 2006/48/EC and 2009/138/EC. ' The law in the Parliament adopted 16 may 2013. The President of the Parliament instead of the President's Āboltiņ 2013 in Riga on June 4.