Amendments To The State Funded Pension Law

Original Language Title: Grozījumi Valsts fondēto pensiju likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/193381

The Saeima has adopted and the President promulgated the following laws: law on State funded pensions in State funded pension Act (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 2000, nr. 7; 2002, nr. 24; 2004, nr. 2, 9.; 2005, 12. No; 2006, 21 no, 12; 2007; 2008, nr. 21. no; 2009, 1., no. 10) follows: 1. in article 11: make the first and second subparagraph by the following : "(1) occupational pension scheme funds Manager carries out occupational pension scheme, contributions made to a further fruit (interest) and other assets (hereinafter referred to as products). Occupational pension schemes may be established in Latvia manage investment management company or the European Union or the European economic area (hereinafter referred to as Member States) registered investment management company branch in Latvia, which is entitled to provide investment management services (hereinafter Member State Branch). Occupational pension scheme funds Manager should start occupational pension schemes, the management of the funds only after the registration of occupational retirement scheme register of management that maintains and updates the financial and capital market Commission (hereinafter the Commission).
(2) settlement of transactions with occupational pension scheme assets in the funded pension scheme funds Manager performs with the holder of the funds, concluding with the custodian agreement. Occupational pension schemes may hold a registered bank in Latvia, where the laws of the order has launched investment services and the provision of additional services, including the holding of financial instruments, or registered in a Member State of the branch of the bank in Latvia, where the bank is entitled to provide investment services and additional services, including to hold financial instruments. The choice of the holder of the funds it duties and responsibilities, as well as the custodian of the conclusion of the contract and the implementation of this law and investment management company law. ";
Add to article 5.1 part as follows: "(51) occupational pension scheme funds manager ensures that maximum payments for investment plan administration, including the management resources and compensation to be paid to the holder as well as payments to third parties by means of the investment plan, does not exceed two per cent of the assets of the investment plan of the average year. These payments do not include expenses incurred in carrying out transactions with investment assets of the plan to repurchase. ";
to make the sixth part (1) of the following: 1) the Commission has withdrawn a record occupational pension schemes management register; ";
turn off the sixth paragraph 2;
adding to the sixth part of paragraph 4 after the words "(investment plan prospectus for new version)" by the words "or chosen investment plan adds another to the same occupational pension scheme managed by the investment management plan";
off the seventh;
turn off the ninth paragraph, first sentence, the words "if it is administered for a period of not less than one year the State funded pension scheme funds".
2. Replace 11.1 in the first paragraph, the words "financial and capital market Commission" with the word "Commission".
3. To supplement the law with article 11.3 as follows: "article 11.3. Occupational pension schemes management registration (1) to register for occupational pension schemes registry management, investment management company or a branch of a Member State shall submit to the Commission an application. It shall be accompanied by the following documents, which define the investment management activities of the public occupational pension scheme management: 1) action plan for the next three years, which describe how it is planned to provide occupational pension scheme management, and which contains at least the following information: (a) implement investment plans), b) and expenditure forecast sources of cover;
2) description of the internal control system, which includes: (a) the organisational structure with clear) for specific tasks and responsibilities of the officer, b) accounting policies and accounting principles of the Organization, (c)) financial risk management policies, (d)) management information system description, e) information system protection rules.
(2) the Commission, after receipt of the application by the Member State of the branch shall provide the management authority of the Member State in which the request will be asked to declare that: 1) Member State licensed investment management company executes the capital requirements and during the year prior to the application for registration has been found in violation of these requirements;
2) Member State licensed investment management company comply with the rules and internal control during the year before the submission of the application for registration, it does not have adequate penalties for violations of these provisions;
3) a management authority of the Member State does not object, the branch started to manage occupational pension schemes;
4) a management authority of the Member State shall immediately inform the Commission of the facts, which endangers or may endanger the State branch in Latvia.
(3) the Commission shall examine the application and the decision on the entry of the occupational pension scheme managers of funds or the refusal to make the registry entries taken within a period of 60 days following receipt of the first and second part of the document set designed for the requirements of the laws governing the documentation procedures.
(4) the Commission shall adopt a decision on the refusal to make a record of occupational pension schemes, the management if: 1) the applicant does not comply with this law, the first paragraph of article 11;
2) applicant does not submit any of this article, the document referred to in the first subparagraph or the documents submitted by the false or incomplete information;
3) documents submitted are not designed in accordance with the law and the requirements of the laws and regulations governing occupational pension scheme, personal data protection and document design;
4) during the year before the submission of the application to the investment management company has violated the capital requirements;
5) during the year before the submission of the application to the investment management company has violated the rules of internal control and for the said offences suitable sanctions;
6) a management authority of the Member State objects to the fact that a Member State branch started to manage occupational pension schemes;

7) a management authority of the Member State has not agreed to inform the Commission of the facts, which endangers or may endanger the State branch in Latvia;
8) the Commission has not received the second part of the management authority referred to in the statement.
(5) the Commission has the right to cancel an entry in the occupational pension scheme management register if: 1) found any of this article above fourth paragraph;
2) occupational pension scheme funds Manager breaking occupational pension scheme regulations of the regulatory requirements, the violation of which may be adversely affected by further management activity or occupational pension scheme members ' interests;
3) occupational pension scheme funds Manager in violation of the provisions of the investment plan, which is committed to invest and manage occupational pension schemes;
4) occupational pension schemes for management is cancelled license investment management services;
5) occupational pension scheme funds Manager within one year from the date of the registered occupational pension schemes, the management has not entered into a contract with an agency of the State funded pension scheme management;
6) occupational pension scheme funds Manager is reorganized or liquidated;
7) occupational pension scheme funds Manager waives the funded pension scheme management;
8) If a Member State so requests, the supervisory authority of the branch;
9) a management authority of the Member State of the branch shall inform the Commission of the facts, which endangers or may endanger the State branch in Latvia.
(6) where the Commission has found the fifth paragraph of this article, under certain conditions, which allow you to decide on the cancellation of a record occupational pension schemes, the management has the right to revoke the entry, but you must first decide on the alert or the expression of this law article 13 5.1 referred to the imposition of the fine, as well as the deadlines for the correction of infringements detected. If after this period ends in occupational pension schemes, funds Manager does not resolve any irregularity, the Commission shall withdraw the funded pension scheme records management of the register.
(7) If the administrative act issued by the Commission for the entry of the cancellation of occupational pension schemes management register is appealed, it will not suspend the operation of this Act. "
4. in article 12: express the introductory part of the first subparagraph by the following: "(1) occupational pension scheme funds Manager, investing in occupational pension schemes means acting like a careful and thorough landlord and only the investment plan in the interest of the participants, as well as comply with the precautionary principle, which provides for risk reduction, investment security, quality and liquidity according to the provisions of the investment plan and implement investment policy that focuses on the investment plan of members of occupational pension schemes means growth. Occupational pension funds may invest in the following financial instruments: ";
replace the first subparagraph of paragraph 1, "b", the words "in another Member State of the European Union or the European economic area countries" with the words "or by another Member State ';
replace the first subparagraph of paragraph 1 "d" words "in the Member States of the European Union or the European economic area countries" with the words "Member States";
replace the first paragraph, the words "in paragraph 1.1 in another Member State of the European Union or the European economic area country" with the words "or in another Member State";
Replace paragraph 2 of the first paragraph of the "a" words "in a Member State of the European Union or the European economic area" with the words "Member States";
replace the first subparagraph of paragraph 3 "a" words "in another Member State of the European Union or the European economic area country" with the words "or in another Member State";
make the first part of paragraph 3, "c" at the bottom of the second sentence of the paragraph by the following: "provided that such securities within one year from the date of subscription, it is not included in the" a "or" b "referred to in subparagraph regulated market, occupational pension schemes is the responsibility of management to repurchase these securities at a price that fits their acquisition value;";
replace the first paragraph (4) and (5) and (6) in the "a" and "b" in subparagraph the words "in another Member State of the European Union or the European economic area country" with the words "or in another Member State";
make the first part of paragraph 7 as follows: "7) venture capital market: a market that offers capital in Latvia or another Member State to finance the registered companies in their development phase."
Add to paragraph 1, second subparagraph, second sentence, after the words "those limitations be exceeded" by the words "by investing in the State issued debt securities, as well as";
to supplement paragraph 2 second subparagraph with the following sentence: "this restriction does not apply to investments in the Latvian local government issued debt securities;";
Replace paragraph 8 of the second paragraph, the number "2" with the number "5";
make paragraph 10 of the second paragraph, the first sentence as follows: "10) deposits in a credit institution or one of the Group of credit institutions and investment within these same credit or one group within the financial instruments issued by credit institutions in the total must not exceed 15 percent of the assets of the investment plan".
to make the second part of paragraph 13 and 14 by the following: ' 13) total investment in the venture capital market may not exceed five percent of the assets of the investment plan. Investment in the capital of a capital company which is in the development stage must not exceed five percent of the share capital of a capital company concerned and voting shares or part, but part of the investment (capital), the amount of the company, which was founded with the aim to finance developing companies or investment companies in the capital, which was founded with the aim to finance developing companies, may not exceed 30 percent of the total investment (capital) or the relevant company capital;
14) total investment in Latvia or another Member State registered investment funds that are not open for investment funds or comparable to the total investment of the enterprises investment management company within the meaning of the law, may not exceed 10 per cent of the assets of the investment plan ";

Add to the second part of paragraph 15 with the following: "15) through an investment plan assets in transactions with repurchase the assets, obligations arising from the following transactions shall not exceed 50 per cent of the assets of the investment plan. These transactions may be carried out only in the investment plan for short-term liquidity for up to three months. "
to make the fourth subparagraph by the following: "(4) occupational pension schemes for prohibit management: 1) investment plan funds to invest in real estate, except for investments in investment funds, which are allowed to invest in real estate;
2) investment plan features to grant loans;
3) investment plan to invest the resources of the funded pension scheme issued by the management of financial instruments, with the exception of its existing managing investment funds for which the certificate for the purchase or sale of a funds Manager does not receive a Commission from the resources of the investment plan;
4) take loans to the investment plan, excluding the expense of borrowing short-term liquidity for up to three months, not exceeding 50 percent of the assets of the investment plan;
5) at the expense of the investment plan commitments arising from the Treaty of guarantee;
6) closing of the second paragraph of this article 15 and paragraph 4 to this part of the above transactions, the total amount exceed 50 percent of the assets of the investment plan ".
to make a fifth by the following: "(5) the statutory investment restrictions that apply to investment one of the issuer's issued debt securities or money market instruments, as well as one of open investment funds (investment management company within the meaning of the law), the units are permitted to exceed, if these are due to excess investment plan because of fluctuations in value of the investment or if the investment at the time it is not possible to determine or calculate debt securities or money market instruments of the quantity or value of the as well as the issued or outstanding contribution certificate part value or number. ";
to supplement the article with sixth and seventh paragraph as follows: "(6) the statutory investment restrictions overrun cancels the validity of the transaction, but the occupational pension scheme trustees of funds are obligated to pay all damages incurred by investment plan participants and third parties for the following reasons, except for the fifth subparagraph of this article in specific cases.
(7) occupational pension scheme funds Manager immediately, but not later than the next working day, in writing, inform the Commission of the contribution limits, as well as on measures for the prevention of these irregularities, indicating the deadlines for the correction of irregularities. "
5. Article 13: put the title and the first, second and third subparagraph by the following: ' article 13. Occupational pension schemes and funds management activities of holders of monitoring (1) the Commission shall monitor the occupational pension schemes and funds management activities of holders.
(2) the Commission has the duty to: 1) monitoring that occupational pension schemes to fund managers, managing occupational pension scheme funds comply with legislative requirements;
2) monitor to occupational pension schemes, the holder of the funds by occupational pension schemes means keeping, comply with regulatory requirements;
3) register law compliant investment plan prospectus.
(3) the Commission shall report to the Agency for entry or cancellation of occupational pension schemes management register. ";
replace the words "in part 5.1 investment management company" with the words "management, holder of funds";
replace the sixth subparagraph, first sentence, the words "decides on the occupational pension scheme trustees of funds withdrawal of the licence issued to" with the words "revoke the entry on occupational pension schemes management register";
off the seventh paragraph, the words and figures "this law, article 11 of the sixth part 2 in the case provided for in paragraph".
6. in article 14: replace the first paragraph, first sentence, the words "prepare a report" with the words "prepare an annual report";
to supplement the article with the third part as follows: "(3) in order to ensure the monitoring, the Commission is entitled to request the funded pension scheme Manager to prepare funds to other accounts in accordance with regulations issued by the Commission rules on the preparation and submission of these reports."
7. Supplement article 15 with the second part as follows: "(2) 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 appeals. "
8. transitional provisions be supplemented with 12, 13 and 14 by the following: ' 12. If the investment management company have received the license of the State funded pension scheme management, the Commission during the month following the date of entry into force of the relevant amendments to the Act establishing occupational pension schemes, registration management, the investment management company conducted registration for occupational pension schemes registry management without requiring additional documents.
13. Amendment of the law article 12, first paragraph, point 3 of the "c" in the second sentence of the subparagraph in relation to the obligation to repurchase the securities, and the amendments to the second part of paragraph 13 concerning the determination of the limitation does not apply to investments made prior to the entry into force of the amendments, and such transactions remain in accordance with those provisions, the law of which the said until the entry into force of the amendments, except where the amount of the investment is increased or amended by other conditions of the transaction.
Amendment 14 article 12 of the law the second part concerning the addition to paragraph 15 and amendment of article 12 of the law in the fourth subparagraph, in respect of the expression of the new version 2009 enter into force on 1 December. "
The Parliament adopted the law of 28 May 2009.
President Valdis Zatlers in Riga V 2009 June 17 Editorial Note: the law shall enter into force by 1 July 2009.