The Amendments To The Law On Credit Institutions

Original Language Title: Grozījumi Kredītiestāžu likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/223915

The Saeima has adopted and the President promulgated the following laws: the law of credit institutions to make the law of credit institutions (the Parliament of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1995, nr. 23; 1996, 9, 14, 23 no; 1997, no. 23; 1998; 2000, no. 13, no. 13; 2002, 10, 23; 2003, nr. 14. No; 2004, 2, 12, No 23; 2005, 13, 14, 15 no; 2006; 2007, nr. 7, 12 no; 2008 , 14, no. 23; 2009, 6., 7., 17, no. 22; Latvian journal 2010, 23, 51, nr. 160.) the following amendments: 1. Replace the entire law, the word "Euro" with the word "Euro".
2. Replace the entire law, the word "bank" (the fold) with the words "credit institution" (fold), except for the words "the Bank of Latvia" (fold), "the central bank of a Member State" (fold), the "European Banking Committee" (the fold) and "Bank takeover law" (the fold), and article 9, first paragraph, introductory part.
3. in article 1: (1) be expressed as follows: "1) a credit institution, a corporation that accepts deposits and other repayable funds from the unrestricted deployment of clients, in the name of the issuing credit and other financial services;";
Supplement point 4 with the "o" section as follows: o) the issuance of electronic money; "
Express 18 as follows: "18) interconnected group of customers: two or more persons: a) a credit institution which one single risk because one of them directly or indirectly controls another person or other persons, except when the credit institution prove that persons among which there is a controlling relationship, does not make one single risk to the credit institution, which does not exist) between the b-control relationship, but which form the common risk of credit institution because the are related in such a way that one's personal financial problems, including difficulties in the provision of financing or debt payment difficulties may cause to another person or other persons in the provision of financing or difficulties in the payment of the debt difficulties; ";
turn off 39;
Add to article 60 and 61 points. the following wording: "60) consolidated management authority — Member supervisory body that is responsible for the European Union's mother of the credit institution and parent European Union financial holding company controlled by credit institutions supervision at group level of consolidation;
61) the College of supervisors — designed for supervisory cooperation advisory unit, which operates on the cooperation between the supervisory authorities concerned for the contract. "
4. Turn off the article 3, third and fourth.
5. in article 6: turn off in the first paragraph, the number "40".
to turn off the second part.
6. in article 9: to make the first part as follows: "(1) a Person who provides financial services in the Republic of Latvia, it is prohibited to use in your title (firm) or self-promotion, the word" credit institution "or the word" bank "in the fold, and any words in a way that gives a false picture of its activities under this Act.";
to turn off the second, fourth, sixth and seventh.
7. in article 11: turn off third;
turn off the fifth paragraph, the words "or by electronic money institutions";
turn off the sixth.
8. Turn off 11.1 article.
9. Turn off 12.5 article.
10. Supplement article 14, first paragraph, introductory paragraph, after the word "receipt" with words and figure "but not later than 12 months from the date of receipt of the application for a license (permission)".
11. Turn off the second subparagraph of article 21.
12. Supplement article 27, the first paragraph with the following paragraph 9: "9) shareholders of a credit institution with a significant participation in the voting rights of the shares owned by them, the ban on the use and it lasts more than six months."
13. To supplement article 34.1, with paragraph 4 by the following: "4) pay system."
14. in article 35.1: make the second paragraph as follows: "(2) the financial and capital market Commission carries out external credit assessment institution (rating agency) assessment and appropriate credit rating credit risk capital requirements for the use of calculation recognizes its institutions, which meets the following requirements: 1) their credit assessment methodology is an impartial, independent, transparent, and constantly being revised;
2) it carried out credit assessments meet the requirements of reliability and transparency. "
Add to article 2.1 part as follows: "(21) external credit assessment institutions (rating agency) assessment methodology is considered to be the second part of this article, the requirements of paragraph 1, if the external credit assessment institution (rating agency) established in accordance with European Parliament and Council of 16 September 2009. Regulation (EC) No 1060/2009 on credit rating agencies. Additional evaluation of the methodology is necessary. "
15. off 21.9.
16. Make the first paragraph of article 36.3 as follows: "(1) a credit institution public information about its operation to the risk management objectives, methods, and policies for the same capital requirements and capital adequacy, as well as the remuneration policy and its marketing practices for those officials or employees of the credit institution, which the professional activities have a material impact on the risk profile of the credit institution."
17. off 37. the third, fourth and fifth.
18. off article 40.
19. Article 42 of the expression by the following: ' article 42. (1) with a single customer or a group of related client group risk transaction amount shall not exceed 25 percent of the credit institution's own funds. Financial and capital market Commission may authorise the trading book exposures, if a credit institution calculates and follow the prescribed additional excess capital requirement.
(2) if the customer is a credit institution or an investment firm, for which the applicable capital adequacy requirements in accordance with the financial instruments market-regulating laws, or if the connected client group includes one or more credit institutions or investment firms, with that client or group of connected clients risk transaction amount shall not exceed 25 percent of the equity of a credit institution or the equivalent of 100 million euro in lats in accordance with the Bank of Latvia exchange rate depending on that amount is the largest, while observing that with all the other customers of that interconnected group of customers that are not credit institutions or investment firms risk transaction amount does not exceed 25 percent of the credit institution's own funds. If the 100 million euro in lats equivalent according to the Bank of Latvia exchange rate is more than 25 percent of the equity of a credit institution, a credit institution itself determined by the following client exposure to limit the amount that this transaction may not exceed the amount of the credit institution's own funds. This limit shall be set, taking into account the credit risk management policy and procedure requirements.
(3) the financial and capital market Commission is empowered in exceptional cases for a certain period of time exceed the second part of this article the said limit, if it is determined the amount of the credit institution's own funds, however, must not exceed 100 million euros equivalent in lats in accordance with the exchange rate set by the Bank.
(4) subject to the Limitations with a single customer or a group of related customer exposure to the group as a whole, the procedure for determining the amount, of the possible exceptions to the extent of the exposure limits and the calculation of own funds of the financial and capital market Commission. "
20. Article 43: first off;
to make the second and the third part as follows: "(2) exposures to persons that are associated with the credit institution may not exceed a total of 15 percent of the equity of a credit institution. This limitation does not apply to exposures to credit institutions the parent undertaking, subsidiary and parent company subsidiary, as well as to credit institutions participation in the share capital of its subsidiary and the company share capital in which the credit institution has a membership.
(3) the procedure for the determination of the persons related to the credit institution, subject to the limitations the extent of the exposure, and the calculation of own funds of the financial and capital market Commission. "
21. off the second subparagraph of article 44.
22. Turn off 50.8 and 50.9 article number "40".
23. the express 54. the second subparagraph by the following: "(2) the financial and capital market Commission manages the credit risk management of credit institutions."
24. the supplement to chapter IV 37.1 and 59.8 article, such: "article 37.1. (1) If a credit institution's business transition business is closed between the two institutions, financial and capital market Commission, after the conclusion of the transaction is entitled to relieve the company of a credit institution, as well as the transferor company acquiring credit institution from one or more of the following regulatory requirements of the business of credit institutions: 1) the own funds of the amount;
2) equity structure of respect;
3) of this Act 42, 44 and 45 of the limit set in article.

(2) the first part of the exemption referred to in financial and capital market Commission is entitled to determine for each credit institution for a period not exceeding 36 months from the date of receipt of permission for the transition of the company.
(3) a credit institution, which set out an exemption from the regulatory requirements of the business of credit institutions, is not entitled to such exemption in time to attract new deposits and other repayable funds from the unrestricted deployment of clients and to issue new loans or to increase existing credit limits.
(4) If a credit institution to the financial and capital market Commission's exemption from the regulatory requirements of the business of credit institutions to the end of the maintenance period does not provide its own compliance with this law and other laws regulating the business requirements, financial and capital market Commission to revoke the license (permission).
59.8 article. (1) the financial and capital market Commission require that a credit institution, which receives the support of the business, review its system of remuneration, if necessary, also determining the emoluments of the members of the Management Board of the credit institution's limitations, in ways that ensure effective risk management and long-term development.
(2) a credit institution, which receives the support of business, determine the percentage of your net income restrictions around, which may be used independent of performance pay, in order to ensure the stable operation of the appropriate authorities of the capital maintenance and timely business support.
(3) a credit institution, which receives the support of business, Board members do not provide the results of the activity depends on pay. Such credit institutions, the Council, on a case-by-case basis, may exceptionally decide to pay for such a determination. "
25. Turn off article 72.1.
26. Express 74.1 article as follows: "article 74.1. (1) a credit institution shall ensure that the client application and complaint (the dispute) on the provision of financial services review procedure is effective. Written information about the application and referred the complaint examination procedure (dispute) is freely available and credit institutions, credit institutions electronic homepage on the internet, if any.
(2) a credit institution shall provide a written response to the written submissions and complaints (disputes) for the provision of financial services within 30 days of the application or complaint (disputes) of the date of receipt. If this time limit for objective reasons cannot be complied with, the credit institution is entitled to extend the notice in writing to the applicant. "
27. off 101.5, 101.6, 101.4, 101.7, 101.8, 101.9, 101.10, 101.12 101.13 101.14 101.11,,, and article 101.15.
28. the express article 106 of the first and the second part as follows: "(1) the financial and capital market Commission or its authorised representative shall have the right to verify credit institutions or financial holding company and the consolidation of its subsidiary in the Group companies.
(2) the financial and capital market Commission or its authorised representative shall be entitled to inspect all credit institutions or financial holding company and the consolidation group in the documentation of its subsidiary, assets and liabilities, as well as receive from the responsible parent companies or subsidiaries to persons for explanations and information on companies in which the Group has investments in consolidation. "
29. To supplement the law with 108.2 and 108.3 article as follows: "article 108.2. In order to ensure the supervision of credit institutions, which, with subsidiaries in one or more Member States, the financial and capital market Commission shall cooperate with the Member States concerned shall provide the supervisory bodies, and receives from these institutions for the supervision of credit institutions, the necessary information on the management and shareholders of credit institutions, as well as information relating to the licence of a credit institution, an affiliate of start-up and operation of credit institutions, regulatory requirements, in particular with regard to the liquidity of the deposit guarantee, solvency, large exposures, containment, control and accounting procedures and internal control mechanisms.
rule 108.3. (1) the financial and capital market Commission, stating the reasons, sent to the consolidation group of the credit institution not included, which is registered in the Republic of Latvia branch, home country consolidated supervisory authority or supervisory body to monitor the consolidation group, which includes the credit institution which is registered in the Republic of Latvia branch, a request to harmonize views, to make a decision (hereinafter referred to as a coherent decision) of the Republic of Latvia registered branches of major recognition.
(2) in assessing the importance of the branch, the financial and capital market Commission takes into account the following criteria: 1) branches in the Republic of Latvia deposits linked to exceed two percent of the supervision of credit institutions sector linked to the amount of the deposit;
2) branches in the suspension or termination may affect the Republic of Latvia on financial market liquidity and payment and settlement systems;
3) affiliates active and the number of customers is a significant sector of credit institutions of the Republic of Latvia or to the financial system.
(3) the financial and capital market Commission and the affiliate home country consolidated supervisory authority or supervisory authorities shall cooperate and take all necessary action to two months from the first paragraph of this article the date of dispatch of the request in the adoption of a coordinated decision on the recognition of the importance of the branch.
(4) in the third subparagraph, the decision may be appealed to the consolidated supervision of the institution or the home country of the branch in national laws.
(5) If, within two months from the first paragraph of this article the request will not be accepted for the coherent decision, Financial and capital market Commission, subject to the supervisory authority in the home Member State or the institution of consolidated supervision, within a further two-month period is entitled without consensus to take a decision on the recognition of the relevant branches.
(6) a management authority of another Member State may apply to the financial and capital market Commission with a request to recognize in that Member State, registered in the Republic of Latvia registered the branch of a credit institution to a significant, or if the financial and capital market Commission is an institution of consolidated supervision, with the request to recognize the consolidation of credit institutions included in the Group of the importance of the branch. Financial and capital market Commission shall take all necessary action to two months from the date of receipt of the request the adoption of coordinated decision on the recognition of the importance of the branch. If a consistent decision is not adopted, the Financial and capital market Commission followed a management authority of another Member State of the decisions taken concerning the recognition of the relevant branches.
(7) in the sixth paragraph of this article, the decision can be appealed to the administrative court.
(8) the decision on the recognition of the relevant branch shall be communicated to the respective registered in the Republic of Latvia of a credit institution the subsidiaries established in other Member States and branches of credit institutions for supervisory purposes.
(9) the recognition of the importance of the branch is not affected by the supervisory bodies in certain rights and obligations.
(10) the financial and capital market Commission of Latvia shall cooperate with credit institutions registered in important affiliate supervisory bodies in the participating countries by exchanging 112.7 this law of the first paragraph of article 3 and the information referred to in paragraph 4 and the first subparagraph of article 112.3 3. monitoring activities referred to in paragraph 1.
(11) if the financial and capital market Commission establishes emergency situation, as well as financial market developments adversely affecting the situation of the credit institution, subject to the availability of limited disclosure rules and using existing information-sharing ways to immediately warn of an emergency situation of the participating national central banks or other monetary systems and the competent authority responsible for the supervision of the authorities of the participating States and with their task to notify all performance relevant information.
(12) if the registered in the Republic of Latvia a credit institution is significant branches in other Member States and the credit institution is not included in the consolidation group in the supervisors within the College, financial and capital market Commission shall set up and run by the College of supervisors with those national supervisory bodies that are established in these important branches of a credit institution, to ensure cooperation with the national supervisory authorities, carrying out this article in the tenth and eleventh, and in part in article 108.2. Financial and capital market Commission consists of the College, supervised a co-operation agreement with the participating national supervisory authorities.
(13) the financial and capital market Commission, taking into consideration the planned or coordinated supervisory activities the importance of participating States ' supervisory bodies and the likely impact on the Member States concerned, the stability of the financial system, especially in emergency situations, the monitoring bodies which have the responsibility to participate in the meetings of the Board of supervisors.

(14) financial and capital market Commission shall in due time inform all members of the College of supervisors the Board meetings, the main issues under consideration and the planned activities, as well as the decisions taken at the meetings or the measures taken. "
30. off article 112.1.
31. To supplement the law with the chapter VII1 as follows: "the chapter VII1 monitoring credit consolidation at group level 112.2 article. (1) the financial and capital market Commission of Latvia made a parent credit institutions or registered in the Republic of Latvia in the European Union of the mother's consolidated supervision of credit institutions the parent credit consolidation at group level.
(2) If a credit institution the parent company is the parent of the Republic of Latvia on financial holding company or registered in the Republic of Latvia to the European Union's parent financial holding company, or another European Union Member State of the parent financial holding company, which has no subsidiaries of credit institutions in other Member States, financial and capital market Commission shall carry out such supervision on a consolidated basis of credit institutions, the financial holding company consolidation at group level.
(3) If in the Republic of Latvia and at least one credit institution established in a Member State, the subsidiary, the parent company of the same mother, the Republic of Latvia or of the financial holding company registered in the Republic of Latvia in the European Union of the parent financial holding company, financial and capital market Commission carried out such consolidated supervision of credit institutions, the financial holding company consolidation at group level.
(4) If in the Republic of Latvia and at least one Member State registered credit institutions the parent company of the Republic of Latvia and at least one financial holding company registered in a Member State and registered in each Member State is also in this institution – subsidiary company financial and capital market Commission carried out supervision on a consolidated basis if the Republic of Latvia registered institution is the largest in total assets.
(5) If in the Republic of Latvia registered credit institution and at least one Member State of the European Union registered a credit institution the parent company of the same financial holding company that is not registered in the Republic of Latvia, not in another Member State in which the registered of other credit institutions, financial and capital market Commission carried out supervision on a consolidated basis if the Republic of Latvia registered institution is the largest in total assets. Such credit shall be regarded as the mother of the European Union financial holding company subsidiaries.
(6) specific cases financial and capital market Commission are entitled by mutual agreement with the Member State concerned, the supervisory bodies are not subject to the fourth and fifth paragraphs to be followed, if its application would be inappropriate, taking into account the credit institutions concerned and the relative importance of the different countries, and to suggest other than the usual round of management authority for the determination of analyte consolidated supervision. Before such a decision of the supervisory authority responsible for consolidation given the credit institution or a financial holding company or credit institution with the largest total assets the ability to comment on the decision. Financial and capital market Commission shall inform the European Commission of this type of agreement and its content.
(7) the financial holding company which is the parent company of the credit institution, provided that the credit institution, supervision on a consolidated basis shall be exercised by the financial and capital market Commission, information on their credit and financial institutions, which is a financial holding company or a subsidiary of that holding company is the financial participation.
(8) a credit institution, financial holding company consolidated supervision at group level of consolidation does not mean that the financial and capital market Commission individually monitored the financial holding company, but financial holding company ensures that the Republic of Latvia registered financial holding company Chairman of the Board and the members of the Management Board shall meet the same requirements and to apply the same limits for credit institutions to the Chairman of the Management Board and the Executive Board respectively in article 24 of this law in the first and second paragraphs of article 25, first paragraph.
(9) If a credit institution registered in Latvia is the parent of another Member State or another Member State of the credit institution the parent financial holding company and its subsidiary in that Member State is not included in the consolidation group for the purpose of consolidated supervision, financial and capital market Commission is entitled to request from the Member State concerned registered parent company information required in the Republic of Latvia for monitoring the registered credit institutions.
(10) the credit institutions and financial holding company subsidiaries, exempt from inclusion in the consolidation group, after the financial and capital market Commission's request, providing consolidated monitoring information. Financial and capital market Commission may carry out tests or have them carried out to third parties — sworn auditor or certified auditor company to check of these subsidiary companies of the information received.
Article 112.3. (1) in order to ensure that the Republic of Latvia to the European Union established the parent credit institutions and credit institutions that are registered in the Republic of Latvia in the European Union the financial holding company of the parent subsidiary company monitoring consolidation at group level, financial and capital market Commission: 1) shall coordinate the acquisition of essential information and the disclosure of surveillance needs, including in emergency situations;
2) in collaboration with the consolidation of other Member States included in the group supervision of credit institutions, plan and coordinate monitoring activities, including assess capital adequacy assessment process carried out in accordance with this law or in article 36.2 of the Member State concerned, to the requirements of the laws and disclosure requirements, supervisory review process implemented in accordance with the requirements of article 101.3 of the law or the laws of the Member State concerned, including risk assessment and risk management. If necessary, make 101.3 and this law in article 113 of the surveillance activities and penalties for consolidation at group level and the consolidation of the companies forming the group level;
3) in collaboration with the consolidation of other Member States included in the group supervision of credit institutions and, if necessary, with the national central banks of the Member States, plan, and coordinate monitoring activities in emergency preparedness and their time, including emergency situations, which may lead to credit deterioration in the financial condition or financial market in the event of adverse developments. Emergency situations for monitoring activities include the preparation of a joint assessment of the situation, the crisis management plan implementation and the provision of public information. The information exchange process in crisis management as possible, use existing information-sharing.
(2) if the registered in the Republic of Latvia in the European Union and its parent credit institution subsidiary or registered in the Republic of Latvia in the European Union of the mother's financial holding company and its subsidiaries jointly submitting financial and capital market Commission of the application for authorisation of a credit institution to the internal ratings based approach to credit risk for calculating capital requirements or develop the operational risk measurement approach, capital requirements for operational risk calculations, or internal models for market risk capital requirements for the calculation of the or internal models method for exposure value, the financial and capital market Commission shall examine together with the consolidation of all the other Member States included in the group supervision of credit institutions, shall hear the views of all parties involved and decide on the authorisation requested. The information appearing on the application, the documents and the procedure for the examination of an application determines the financial and capital market Commission.
(3) financial and capital market Commission, within their respective spheres of competence within six months of receipt of the application to which you added the decision required documents, shall take all the necessary actions to coordinate positions with the decision of the supervisory bodies concerned, adopt a decision on the authorisation referred to in the application and shall forward that decision to the applicant.
(4) following the second part of the application, accompanied by all necessary documents, financial and capital market Commission shall immediately forward it to all participating Member States in the taking of the decision of the supervisory bodies.

(5) If all parties to the adoption of the decision of the supervisory authority referred to in the third subparagraph shall not be adopted within the coordinated decision, financial and capital market Commission is entitled to adopt a decision without consensus. The decision is based, it is reflected in the overall decision of the supervisory authority. The decision to send the application to the applicant and the parties of the decision of the supervision authority.
(6) in the third subparagraph, the decision may be appealed to the administrative court.
(7) If in the Republic of Latvia, which is a credit institution established in another Member State of the European Union or the parent credit institution the parent European Union financial holding company's subsidiary company, together with its parent company shall be submitted to the supervisory authority referred to in the second subparagraph of article submission, financial and capital market Commission, expressing their views, is participating with other supervisory bodies of the Member States agreed on the decision. If within six months from the date of receipt of the application in a consistent decision is taken, a decision shall be taken by credit institutions the parent institution of supervision, and financial and capital market Commission followed in carrying out the supervision of the credit institution in question.
(8) in the seventh part of this article, the decision can be appealed to the supervision of the parent credit institution, the institution of the country of the relevant national legislation.
112.4 article. (1) the financial and capital market Commission and the other Member States of the bodies which supervise registered in the Republic of Latvia in the European Union's parent company or subsidiary of a credit institution in the Republic of Latvia to the European Union established the parent holding company of the financial subsidiaries included in the consolidation group shall take actions within their competence needed to adopt a coordinated decision on the consolidation group and the consolidation of subsidiaries in the group capital adequacy assessment process evaluation and for monitoring the implementation of the verification process by setting all of the consolidation group and the consolidation of the subsidiaries in the group activity and possible risks inherent to cover necessary capital levels, as well as, if necessary, by setting the whole consolidation group and included in the consolidation Group subsidiary companies the obligation to maintain higher capital levels than the minimum capital requirements. 
(2) harmonised decision four months after financial and capital market Commission decision making involved in the supervision of the subsidiary bodies submitted a report on the consolidation of the Group's risk and capital required to cover it. Adopting a coordinated decision, take into account the subsidiary risk and capital required to cover the evaluation carried out consolidation Group subsidiary involved in the supervisory organ.  
(3) the financial and capital market Commission adopted a coherent decision, sent to the Republic of Latvia to the European Union established the parent credit institution registered in Latvia or the European Union, the financial holding company of the mother or the consolidation group of a credit institution responsible.
(4) the decision of the supervisory authority in the event of a dispute, the financial and capital market Commission by any subsidiaries of the supervisory organ's request or on its own initiative, consult the Committee of European banking supervisors.
(5) if the financial and capital market Commission and the consolidation of the subsidiary included in the group supervision institutions in the second part of this article that does not adopt a coherent, the supervisory review process of the implementation of the consolidation at group level, determining the intrinsic activities of the consolidation group and the alleged need to cover risk capital, as well as, if necessary, by setting the whole consolidation group, the obligation to maintain higher capital levels than the minimum total capital requirements to adopt the financial and capital market Commission, in the light of all the supervisory bodies of the subsidiary risk, and it needed to cover capital assessment. The decision on the implementation of the supervisory review process of the company or its subsidiaries for consolidation at the level of defining subgroups subsidiaries or its sub-groups for the consolidation activities and possible risks inherent to cover necessary capital levels, as well as, if necessary, establish a subsidiary or its subgroup the task of consolidation to maintain higher capital levels than the minimum capital requirement of total, adopt the present decision of the subsidiary bodies, the monitoring of the financial and capital market Commission, the views expressed and the other subsidiary bodies of the monitoring of risk and cover capital needs assessment.
(6) the financial and capital market Commission decision to all the parties to the adoption of the decision of the supervisory bodies and in the Republic of Latvia to the European Union established the parent credit institution registered in Latvia or the European Union, the financial holding company of the mother or the consolidation group of a credit institution responsible.
(7) if the consultation has taken place with the Committee of European banking supervisors, all involved in the adoption of the decision of the supervisory authority shall take account of its recommendations or provide an explanation where suggestions are not taken into account.
(8) the first paragraph of this article, the decision may be appealed to the administrative court.
(9) the first paragraph of this article the decision or any decision taken in the absence of a harmonised decision, reviewed at least once a year or when subsidiary's supervisory body requests a review decision to maintain higher capital levels than the minimum capital requirement of total, shall be submitted in writing to the reasoned request of the financial and capital market Commission. The review of the decision of the financial and capital market Commission and the request by the management authority, as well as, if necessary, monitoring of other subsidiary bodies.
(10) If a credit institution registered in the Republic of Latvia is a Member State of the European Union, the other parent credit institution or an EU parent financial holding company subsidiary, financial and capital market Commission, expressing their views, with the consolidated supervision of the institutions of the other Member States and subsidiary organs of the harmonised monitoring decision making for all consolidation group and the consolidation of subsidiaries in the group activity and possible risks inherent to cover necessary capital as well as, if necessary, on the whole consolidation group and included in the consolidation Group subsidiary companies to maintain higher capital levels than the minimum capital requirements. In case of disagreement between the finance and capital market Commission and the institution of consolidated supervision, financial and capital market Commission is entitled to request for the consolidated supervision of the institution consult the Committee of European banking supervisors. If within four months from the consolidated supervision of the institution of the date of receipt of the report agreed decision is not adopted, a decision at the level of the consolidation group shall adopt the consolidated supervision authority, but a decision on the credit institutions established in the Republic of Latvia or its sub-groups for the consolidation activities and possible risks inherent to cover necessary capital levels, as well as, if necessary, the obligation of the Republic of Latvia registered institution or the consolidation of sub-groups to maintain higher capital levels than the minimum capital requirements total assumes financial and capital market Commission and the decision to send the registered in the Republic of Latvia consolidated supervision of the credit institution and the institution.
(11) the tenth part of this article that the decision may be appealed to the harmonized consolidated supervisory authority in the country of the relevant national legislation.
112.5 article. (1) If an emergency situation arises, including being found adverse financial market developments, which can endanger financial market liquidity and the stability of the financial system in a Member State in which the financial and capital market Commission monitor the consolidation of Group companies or groups of such significant consolidation of credit institutions branches or consolidation group do not include licensed commercial, financial and capital market Commission, subject to the availability of limited disclosure rules and crisis management as possible, using existing information-sharing types immediately warn of emergency central bank of the Member State concerned or other monetary system the competent authority responsible for the supervision of credit institutions, as well as financial institutions, investment firms and insurance companies and the supervisory organ shall notify all tasks with it related information.

(2) Consolidated monitoring required information that is already in another Member State, the supervisory authority, the financial and capital market Commission, if possible, the request from the supervisory authorities concerned for the consolidation group companies should not be included several times to provide the same information.
112.6 article. (1) in order to ensure effective consolidated supervision, finance and capital market Commission concluded co-operation agreements with the consolidation of the companies in the Group supervisory bodies. Financial and capital market Commission as responsible for supervision on a consolidated basis of the institution is in a position to assume additional supervisory tasks, as well as to clarify the procedure of cooperation.
(2) the tasks which can contribute to such registered in Latvia and consolidation of credit institutions in the group, which is the parent of another Member State or another Member State of the credit institution the parent financial holding company subsidiary company financial and capital market Commission may transfer management authority of the Member State concerned in accordance with the mutual agreement. Financial and capital market Commission shall inform the European Commission of such agreement and its content.
(3) if the financial and capital market Commission's consolidated supervision institution, it creates a consolidation of other Member States included in the Group of subsidiary bodies and the monitoring of Member States ' supervisory authorities, in which the consolidation of credit institutions comprising the group are registered in accordance with this law, the sixth subparagraph of article 108.3 requirements in certain important branches, the College of supervisors to facilitate this law, in article 112.3 112.4 112.5 to in the first subparagraph and the tasks referred to in as well as, if necessary, involve monitoring of the foreign Chamber of representatives of the supervisory authorities, if a foreign country are respected in the European Union adopted the limited availability of information disclosure regulations equivalent provisions to ensure the appropriate coordination and cooperation with relevant foreign supervisory authorities.
(4) monitoring of College members have the right to exchange limited availability information. It does not affect the supervisory rights and obligations of the institution, but supports the institution of consolidated supervision and other supervisory bodies of the Member States that make up the College of supervisors, the following tasks are performed: 1) exchange of information;
2) if necessary, to reach agreement on voluntary tasks and delegation of responsibilities;
3 the supervisory inspection program) discovery, based on a risk assessment of the consolidation group;
4) efficiency, eliminating the duplication of supervisory requirements, including demanding that this law, in the second paragraph of article 112.5 and 112.7 referred to in the third subparagraph of article information;
5) consistent application of the precautionary requirements under this Act all of the consolidation group companies;
6 of this Act) of the first paragraph of article 112.3 3. monitoring activities referred to in paragraph 1.
(5) the College of Supervisors in accordance with the decision of the supervisory authority, if necessary, you can include a monitor in the central bank of a participating Member State, as well as the relevant supervisory bodies of the foreign representative, if these foreign laws and regulations, and all supervised by the Supervisory Board, the institution provides this law and European Union law of the limited availability of the exchange of information on the legal framework the legal framework equivalent.
(6) the financial and capital market Commission as consolidated supervision institution run by the College of supervisors meeting and determine which of the supervisory authorities are invited to participate in the meetings of the Board of supervisors. Financial and capital market Commission shall in due time inform all members of the College of supervisors the Board meetings, the main issues under consideration and the planned activities. Financial and capital market Commission also informed all the time keeper of the participants of the meetings of the College decisions.
(7) the financial and capital market Commission, the decision to create the College of supervisors, take into consideration the planned or coordinated surveillance activities the significance of these supervisory bodies, in particular the impact of the decision to the Member State concerned for the stability of the financial system.
(8) the financial and capital market Commission shall inform the Committee of European banking supervisors for monitoring the decisions of the College, including in emergency situations, and shall provide it with all information necessary for the supervision of the equal application of the requirements.
(9) If the consolidated supervision of another Member State authority performs the consolidation group, which included the Republic of Latvia or of a registered institution, the supervision of credit institutions, which are registered in the Republic of Latvia's major branches, financial and capital market Commission participates in the work of the College of supervisors created to the extent determined by the institution of consolidated supervision.
112.7 article. (1) in cooperation with other Member States ' supervisory bodies, the financial and capital market Commission to exchange information which is essential or relevant for the exercise of consolidated supervision. Financial and capital market Commission, on its own initiative, provide all relevant information and, on request, provide useful information to the supervisory authorities of other Member States. The information is deemed essential for carrying out of consolidated supervision if it can affect another Member State of the credit institution or financial institution operating stability evaluation and include at least the following information: 1) main group included in the consolidation group of credit institutions as well as the structure of the consolidation group of credit institutions included in the supervisory bodies;
2) procedures that significant information from credit institutions, which make up the group, and testing procedures of this information;
3) credit institutions or other group companies of negative developments that may significantly affect the functioning of the credit institution;
4) sanctions and monitoring measures by the financial and capital market Commission are carried out in accordance with this law, including the obligation to maintain higher capital levels than the minimum capital requirements for the determination of total and any restrictions on advanced measurement approach for operational risk for use.
(2) the financial and capital market Commission provides all useful information to the other Member States ' supervisory bodies, which are under the jurisdiction of the Republic of Latvia to the European Union established in the parent credit institution subsidiaries registered in the Republic of Latvia and the European Union's parent holding company of the financial subsidiaries. In determining the amount of information useful, take into account the importance of the said subsidiary for the financial systems of the Member State concerned.
(3) if the financial and capital market Commission for the supervision of a credit institution which is a Member State of the European Union, another mother of another Member State to a credit institution or an EU parent financial holding company subsidiary, need information about capital requirements for calculation of the approaches, methodologies and procedures for implementing it, which can be a management authority of the Member State concerned at the disposal of the financial and capital market Commission, if possible, request the following information from the management authority of the Member State.
(4) Before other national supervisory functions important for decision-making financial and capital market Commission consult the respective supervisory bodies of the Member States on the following matters: 1) on the changes in the composition of shareholders and the Group of the credit institution or the management of organisational structure which requires supervisory bodies;
2) on the determination and monitoring of sanctions measures by the financial and capital market Commission intends to take, including the obligation to maintain higher capital levels than the minimum capital requirements for the determination of total and any restrictions on advanced measurement approach for operational risk for use. Referred to in this paragraph before the decision making with regard to credit institutions which are parent credit institutions from other Member States or of other Member States, the financial holding company of the mother of the daughter companies, financial and capital market Commission always consult with the management authority of the Member State concerned, responsible for supervision on a consolidated basis. In cases of urgency or where such consultation may jeopardise the effectiveness of the decision, the financial and capital market Commission may not consult with the management authority of the Member State concerned and immediately announce its decision.
112.8 article. (1) If one or more credit institutions is a mixed parent holding company, financial and capital market Commission, directly or through subsidiaries of credit institutions — — ask for a mixed holding company and its other subsidiaries provide information which is relevant to the subsidiary credit institutions — — supervision.

(2) the financial and capital market Commission may carry out tests or have them carried out to third parties — sworn auditor, certified auditor company to verify information received from mixed holdings and its subsidiary companies. If a mixed holding company or one of its subsidiary companies are registered in another Member State, the information on-the-spot inspections carried out this Act in accordance with the procedure laid down in article 112.12.
112.9 article. (1) a credit institution which is the parent company of a mixed financial holding company, has an obligation to provide financial and capital market Commission information on transactions, which it made with the parent company and its subsidiaries, except for large exposures for which the information in the financial and capital market Commission pursuant to other legislation.
(2) a credit institution shall establish appropriate risk management and internal control system, as well as in the development of appropriate accounting procedures in order to properly identify, evaluate, and control of the business with its parent company, which is a mixed financial holding company and a financial holding company to this mixed subsidiary.
(3) financial and capital market Commission has the right to determine the first paragraph of this article transaction restrictions, if such transactions undermine the financial situation of the credit institution.
112.10 article. (1) the financial and capital market Commission is entitled to request from credit institutions, financial institutions, financial holding companies, financial holding companies and mixed their subsidiaries or companies included in the consolidation group or are exempt from inclusion in the information, in accordance with the laws or the financial and capital market Commission and the supervision of credit institutions of another Member State, the institution of mutual understanding is needed of consolidated supervision of credit institutions.
(2) where a parent company and one of its subsidiary companies, credit institutions, is registered in the Republic of Latvia and other Member States, the financial and capital market Commission and the national supervisory authorities shall exchange all the information necessary for the performance of consolidated supervision. If the financial and capital market Commission of Latvia by the parent company established in the consolidated supervision of another Member State, such supervision is carried out by the responsible supervisory bodies at the request of the financial and capital market Commission requires information from the parent company, which may be relevant to the consolidated supervision and supervision on a consolidated basis shall forward it to the responsible supervisory authority.
(3) the financial and capital market Commission is entitled to exchange with other Member States ' supervisory bodies with the article referred to in the second paragraph of information received from financial holding companies, financial institutions, mixed holdings and their subsidiaries which are not credit institutions, or are exempt from inclusion in the consolidation group and the necessary financial and capital market Commission and the other Member States ' supervisory bodies of consolidated supervision. The fact that the financial and capital market Commission shall obtain and use such information does not mean that the financial and capital market Commission is monitoring these operators.
112.11 article. (1) If a credit institution, financial holding company or a mixed holding company controls one or more subsidiaries which are insurance companies or commercial companies providing such investment services that require authorization (license), the financial and capital market Commission shall cooperate with such other Member insurance companies and other licensed company supervisory bodies. Financial and capital market Commission to provide other Member States ' supervisory authorities information that may provide the following commercial transactions and the monitoring of the financial situation.
(2) the information received by the financial and capital market Commission, carrying out supervision on a consolidated basis (particularly the supervisory bodies of any of the information received), considered to be limited by the availability of information.
(3) if the financial and capital market Commission performs the supervision of credit institutions, financial holding company subsidiaries, the financial holding company supervision consolidation at group level, financial and capital market Commission shall draw up a list of such financial holding company and sends it to the other Member States ' supervisory authorities and the European Commission.
112.12 article. (1) If it is necessary to check the veracity of the information that, when carrying out supervision on a consolidated basis, financial and capital market Commission received about registered in another Member State of the credit institution, financial institution, financial holding company, holding company or a mixed financial holding company of the credit institution and the mixed holding company subsidiaries, financial and capital market Commission shall send the Member State concerned at the request of the supervisory authority to check the veracity of the information received.
(2) the financial and capital market Commission is empowered to carry out checks in the Republic of Latvia established credit institution, financial institution, financial holding company, a mixed holding company or a credit institution, financial holding company and subsidiary of mixed holding company on the basis of a management authority of another Member State's request to verify the veracity of the information that the Member State is received by the institution of supervision on the companies, carrying out supervision on a consolidated basis, or authorize such surveillance authority of that Member State. Where a management authority of the Member State concerned does not take the examination itself, it can participate in the financial and capital market Commission's inspection.
112.13 article. (1) If a registered in the Republic of Latvia on financial holding company or a mixed financial holding company, which is a credit institution or financial institution the parent company, does not meet the requirements of this law, or does not provide the credit institution on a consolidated basis the information necessary for the supervision of the financial and capital market Commission is entitled to take this law article 101.3 of the seventh part and referred to in article 113, the monitoring activities and to apply the penalties laid down in these articles or to prohibit the use of its voting right in the Republic of Latvia registered credit and financial institutions.
(2) the financial and capital market Commission cooperates with other national supervisory authorities to ensure effective supervision on a consolidated basis, in particular if a financial holding company or a mixed financial holding company location does not coincide with the location of the control.
Article 112.14. (1) if the financial and capital market Commission does not take a credit institution, supervision on a consolidated basis which is the parent company of a foreign credit institution or a financial holding company, financial and capital market Commission, on its own initiative or at the request of the parent credit institution or by another Member State of the credit institution, insurance company or investment company's request, which is a subsidiary of a credit institution, consult with the participating Member States ' supervisory bodies and assess the whether the credit institution is subject to consolidated supervision laid down in the Member States of equivalent requirements.
(2) in considering whether a foreign supervisory authority concerned of consolidated supervision comply with the requirements in the Member States, the requirements of consolidated supervision, financial and capital market Commission consult the Committee of European banking supervisors.
(3) if the foreign supervisory authorities in consolidated supervision carried out do not meet the requirements laid down in the Member States, the Financial and capital market Commission consolidated supervision of a credit institution which is the parent company of a foreign credit institution or a financial holding company are subject to the requirements of this law. "
32. Supplement article 113 in the first part of paragraph 9 and 10 by the following: "9) to determine the percentage of the net revenue of the credit constraints about which may be used independent of performance pay, in order to ensure the stable operation of the authority according to the amount of equity to be maintained;
10) require that a credit institution uses the profit of investments equity elements. "
33. Article 117 off the first part of paragraph 2, the words "and the bank".
34. Replace paragraph 1 of article 196, the word and the number "up to 5000" with the words and figures "from 100 000 up to 5000".
35. Article 198: replace the first and second part of the name and the number "1000" to with words and numbers "from 1000 to 10 000 ';
to supplement the article with the eighth and the ninth subparagraph by the following: "(8) If a person has acquired or increased a substantial participation in the credit institution before the article 29 of this law in the first or second part of the notification referred to in the financial and capital market Commission or during the examination, the financial and capital market Commission is entitled to impose a fine for the person from 10 000 to 100 000 lats.

(9) If a credit institution does not comply with the requirements of article 34.1 of this law, financial and capital market Commission is entitled to impose fines from credit institution 5000 up to 100 000 lats. "
36. the transitional provisions be supplemented by 39, 40, 41, 42, 43, 44, 45 and 46 as follows: "39. Amendments to the law concerning the substitution of the word" bank "with the words" credit institution "and amendments to the law of 1, 3, 6, 9, 11, 11.1, 12.5, 21, 37, 44, 35.2, 72.1 and this article 112.1 of the article or the exclusion of certain parts for electronic money and electronic money institutions as well as the amendment 117 article enter into force simultaneously with the electronic money institutions regulatory amendments to the payment Services Act.
40. by 2012, the December 31 of the Act in the second and tenth 112.4 part of that decision applied to the time limit of six months.
41. a credit institution that risk weighted value calculation uses the internal ratings based approach until 31 December 2011 provide own funds which are always more than this law, the transitional provisions specified in paragraph 45 of the equity, or equal to it.
42. a credit institution that, after January 1, 2010, has received the financial and capital market Commission's permission to use the internal ratings based approach the risk-weighted value calculation, provide own funds which are always more than the law of the transitional provisions set out in paragraph 45 of the equity, or equal to it. Used in the calculation of own funds of these transitional provisions 45. or calculation prescribed in paragraph 46.
43. a credit institution that capital requirements for operational risk measurement for calculating the developed approach until 31 December 2011 provide own funds which are always more than the law of the transitional provisions set out in paragraph 45 of the equity, or equal to it.
44. a credit institution that, after January 1, 2010, has received the financial and capital market Commission's operational risk capital requirements for the calculation of the use of advanced measurement approach, provide own funds which are always more than the law of the transitional provisions set out in paragraph 45 of the equity, or equal to it. Used in the calculation of own funds of these transitional provisions 45. or calculation prescribed in paragraph 46.
45. Until 31 December 2011 a credit institution's equity capital is at least 80 percent of the minimum equity capital, calculated in accordance with the financial and capital market Commission of the capital adequacy calculation.
46. the financial and capital market Commission may authorise credit institutions after January 1, 2010 received its permit risk weighted value calculation to use internal ratings based approach or operational risk capital requirements to apply to the calculation of the developed approach for measuring, calculating that the transitional provisions referred to in paragraph 45 of the minimum amount of equity capital through a suitable for easier access to credit and operational risk capital requirements in accordance with the financial and capital market Commission's minimum capital requirements. "
37. the information in the reference to European Union directives: turn off paragraph 3;
Add to the informative reference to directives of the European Union with 15, 16 and 17 as follows: "15) the European Parliament and of the Council of 16 September 2009. directive 2009/110/EC on electronic money institutions on the taking up, pursuit and prudential supervision of the business, amending Directive 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC;
16) of the European Parliament and of the Council of 16 September 2009. directive 2009/111/EC amending Directive 2006/48/EC, Directive 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management;
17) the European Parliament and of the Council of 24 November 2010, the EU directive 2010/76/amending Directive 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for repeated vērtspapirizācij, and with regard to remuneration policy supervisory review. "
The Parliament adopted the law on 23 December 2010.
President Valdis Zatlers in Riga V 2011 January 7