Amendments To The Law "on Private Pension Funds '

Original Language Title: Grozījumi likumā "Par privātajiem pensiju fondiem"

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/193382

The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on private pension funds" "make law" on private pension funds ' (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1997, nr. 14; 1998, 2, 19; 1999, no. 13. no; 2000, no. 13; 2002; 2004, nr. 22, 2., no. 9; 2005, 7., 8., no. 24; 2008, 13, no. 23) follows: 1. Article 1 : replace in paragraph 4, the words "private pension fund" with the words "in accordance with the pension scheme accrued";
Add to article 25 as follows: "the critical situation of the 25) analysis — analysis of pension funds to identify and assess the various exceptional but possible adverse event or market conditions change potential impacts on pension plan investment portfolio."
2. Supplement article 3 with the sixth part as follows: "(6) the Pension Fund must not take loans from pension plans obligations arising, except short-term liquidity loans for up to three months."
3. Supplement article 8 the third paragraph with the paragraph 19 by the following: "19) of the Act 14 of the fourteenth in the case referred to in the pension fund developed a conflict of interest situation prevention policy description."
4. a add to chapter II, with the following wording for article 8.3:8.3 "article. Outsourcing (1) action required for the Pension Fund, the operation of the Pension Fund may delegate one or more of the outsourced service providers on the basis of a written contract with the Pension Fund, shall undertake to provide the pension fund or providing outsourced and who have the appropriate qualifications and experience in the provision of the services.
(2) in accordance with the provisions of a pension scheme accrued management and keeping out the chosen Pension Fund pension plan funds Manager and pension plan funds according to this law, the holder of 20, 21 and 21.1 of the procedures laid down in article.
(3) a pension fund internal audit outsourcing can delegate only sworn auditor, certified auditor of the company or the pension funds of the parent company internal audit (audit) service pursuant to article 14 of this law in the third and sixth part of the requirements set out in the Pension Fund's internal control service.
(4) the Pension Fund may not delegate: 1) pension fund management institution;
2) pension fund license allowed feature set out fully.
(5) to the pension fund could start outsourcing, it outsourcing of the development policy and procedure, which States: 1) the order in which the Pension Fund decisions are taken on outsourcing Muggle artifacts;
2) outsourced contract, execution monitoring and termination procedures;
3) people (officers and employees) and the Department responsible for liaison with the external service provider and receive the outsourcing and quality monitoring, as well as the rights and obligations of individuals;
4) pension fund action in case the outsourcing provider fail or not be able to meet the outsourcing agreement.
(6) in the fifth subparagraph of this article, these policies and procedures, the Pension Fund shall provide financial and capital market Commission prior to outsourcing. Financial and capital market Commission within 30 days after receipt of the documentation referred to consider and evaluate their compliance with the requirements of this law.
(7) If a pension fund is delegated to the sort of accounting, information technology, system management, or development or internal control organized by the Pension Fund, in addition to in the fifth subparagraph of this article, the documents submitted to the financial and capital market Commission an application for the use of outsourcing and outsourced contract original or copy, the authenticity of which has been certified by the person who is entitled to make decisions on behalf of the Pension Fund. Outsourcing provider may initiate this part of the provision of that service, if the financial and capital market Commission within 30 days of receipt of the contract outsourcing does not send the Pension Fund decision prohibiting the Pension Fund to get the outsourcing of outsourcing provider. The rest of the cases of outsourcing pension fund within five working days after the conclusion of the contract of the outsourcing shall inform the financial and capital market Commission.
(8) the Outsourcing contracts shall include at least the following provisions: 1 a description of the receivable outsourcing);
2) and outsourcing of the precise quality requirements;
3) Pension Fund and outsourcing provider rights and responsibilities, including: a) to the pension fund the right to continuously monitor the quality of the provision of outsourcing, b) pension fund rights give outsourcing provider required executable instructions related to the outsourcing of good faith, high-quality, timely and relevant laws and regulations, the execution of c) pension fund rights require outsourcing provider and outsourcing provider's obligation after receipt of a written request to immediately terminate the outsourcing contracts;
4) financial and capital market Commission's right to become acquainted with the tenth part of this article, these documents and ask the financial services provider ārpakal other information related to the provision of outsourcing and need financial and capital market Commission's functions.
(9) If the documents referred to in this article is amended, the pension fund within five working days after the approval of the amendment to the financial and capital market Commission for information.
(10) the financial and capital market Commission is entitled to make outsourcing provider check its location or outsourced location, consult all documents and registers of accounting documents, make copies, as well as demand from outsourcing provider information related to outsourcing and need financial and capital market Commission's functions.
(11) the financial and capital market Commission banning pension fund to receive the planned outsourcing of the outsourcing provider, if: 1) are not complied with the requirements of this law;
2) outsourced reception may offend members of a pension scheme;
3) outsourced reception may result in restrictions on pension fund management institutions to make them law, statute or other internal pension fund law obligations;
4) prevent the receipt or outsourcing will create restrictions on financial and capital market Commission to carry out its functions under this Act;
5) outsourcing contract does not comply with this law and do not give a true and fair view of the Pension Fund and the expected outsourcing cooperation and outsourcing and quality requirements.
(12) outsourced reception does not exempt pension fund in respect of this law or of the obligations laid down in the contract outsourcing. "
5. in article 9: make sixth paragraph 13 by the following: ' 13) arrangements for the retirement plan participant and beneficiary institutions will be guaranteed in article 24 of this law that information; "
replace the sixth paragraph 14, the words "the yield percent" with the words "guarantee the description";
replace the fourteenth paragraph the word "tenth" with the word "thirteenth".
6. Add to article 10 with the eighth as follows: "(8) the Pension Fund before the individual or collective membership agreement are obliged to present potential members of the pension scheme or employer by the provisions of the pension scheme, in particular explaining to members the deductions applied, the conditions for termination of membership and the provision of order."
7. Replace article 12 of the sixth paragraph, the words "Member State of the European Union, the countries of the European economic area or in another foreign country" with the words "State or a foreign country".
8. Replace article 13, first paragraph, the words "six months" with the word "month".
9. Supplement article 14 with the twelfth, thirteenth and fourteenth part as follows: "(12) on conflicts of interest within the meaning of this law, be considered as a situation where pension fund and the related persons shall take decisions on transactions with pension plan features and at the same time make this decision or the execution control.
(13) the prevention of conflicts of interest by pension funds Council and Board member of the Pension Fund's internal control Service Manager, the Chief Actuary and the persons entitled to make decisions on behalf of pension funds, their performance of their duties, shall refrain from making decisions on pension fund transactions in which those persons occurs or may occur a conflict of interest, as well as the report of the Pension Fund to the Council on such transactions.
(14) if the Pension Fund, funds Manager, the features, the external service provider or the sponsoring employer are related persons, the Pension Fund shall establish a conflict of interest situation prevention policy that provides a description of the potential conflict of interest situation for the timely identification and management. Conflict of interest situation prevention policy includes a description of the action of the employee conflict of interest situation, including establishing: 1) limited access to information that is not required for the performance of the job responsibilities and which causes or is likely to cause a conflict of interest;

2) different organizational accountabilities that ensures the mutual independence of the unit, which carries out activities that cause or may cause conflicts of interest;
3) that conditions for business with the pension fund related parties is no different from the conditions in respect of similar pension fund business with pension funds to unrelated parties and do not conflict with the pension plan and the interests of its members. "
10. Article 20: make the introductory part of the first subparagraph by the following: "(1) a pension plan may manage the assets of the following companies: only";
turn off the first part of paragraph 4, the words "(also individually manage investors ' financial instruments)";
Add to article 1.1 part as follows: "(11) in addition to the first part of this article in your pension plan management functions can also be performed for pension funds that perform this Act the requirements laid down in article 22.1 as regards own resources.";
turn off the third part of the fourth sentence;
to make the fourth subparagraph by the following: "(4) the pension plan provides management pension plan approved investment strategy and the implementation of the rules on pension plan investments, make settlements with the funds paid under the pension plan, make transactions with financial instruments and other dealings of pension plan assets in accordance with the requirements of the law and the financial and capital market Commission registered pension plans."
turn off the fifth.
11. Article 21: turn off the third sentence of the third paragraph;
turn off the fourth part;
to make the seventh part of paragraph 4 by the following: "4) procedure, which has been specified by the holder of the funds under management orders on transactions with pension fund pension plan."
12. Supplement article 7.1 part 22.1 as follows: "(71) if the Pension Fund, which offers only a specific contribution to the plan without the guaranteed rate of return or the plan does not provide cover against biometric risks, losses more than half of the share capital of the Pension Fund, the Pension Fund shall immediately inform the financial and capital market Commission and not later than 10 days submit to the harmonisation of the financial and capital market Commission financial position improvement plan by specifying the action to be taken and their deadlines. "
23. Article 13: replace the third subparagraph in paragraph 1, the words "Member States of the European Union or the European economic area (hereinafter referred to as Member States)" with the words "Member States";
replace the third subparagraph in paragraph 4, the words "the international stock exchange of the full members (members) — official list, or are traded on other regulated and openly available in the markets in financial instruments" with the words "International Federation of full-fledged stock exchange members (members) — official list, or are traded on other regulated in these countries and openly available financial instruments markets";
make the third subparagraph of paragraph 5 by the following: "5) debt securities of the company are included in paragraph 4 of this part that stock exchange (regulated market) in official lists or are traded in this part of the country referred to in paragraph 2 to other regulated and publicly available financial instruments markets;".
make the third subparagraph of paragraph 9 by the following: "9) real estate, registered in this part referred to in paragraph 1. For the pension plan features for real estate in the land registered in the name of the pension fund indicating that the property is purchased for a specific pension plan features and should not be disposed of or encumbered without the pension plan means the holder's consent. Real estate is not included in the assets of the Pension Fund pension fund in the event of insolvency. If real property is in the territory of another Member State, the Pension Fund supports mentioned in this paragraph according to the requirements of the laws of the Member State concerned; ";
turn off the twelfth;
to supplement the article with the thirteenth, fourteenth, fifteenth, sixteenth and seventeenth part as follows: "(13) to the Pension Fund and asset manager is not entitled to the same management of real estate.
(14) the Pension Fund at least once a year, perform a critical analysis of the situation, which assess and document the possible development scenarios. Critical analysis of the situation of the use of sensitivity tests and scenario analysis. Sensitivity tests are carried out to determine the individual factors adverse impact of the changes to the pension plan investment portfolio. Scenario analysis is conducted to determine factors adverse impact of the changes to the pension plan investment portfolio, finding this exceptional but possible adverse event or change the cause.
(15) the Pension Fund's Board approved the critical analysis of the situation and take a decision on the action to be taken in the critical analysis of this event or change in the event of accession. The Pension Fund's Board of Directors approved a decision on the analysis and the activities to be carried out shall submit financial and capital market Commission.
(16) financial and capital market Commission has the right to impose additional requirements and procedures for the critical analysis of the situation, identifying the potential factors and test scenarios.
(17) in addition to the fourteenth part of this article in the financial and capital market Commission has the right to the Pension Fund shall carry out and submit financial and capital market Commission extraordinary critical analysis of the situation. "
14. in article 23.1: Add to article 5.1 part as follows: "(51) If a pension plan provides for the possible accession of the biometric risks in the case of one member of the pension scheme provided for in the cost amount exceeds 0.5 percent of the Pension Fund's own funds, pension fund reinsurance risks under the reinsurance operation of the regulatory legislation.";
to supplement the article with the 7.1 part as follows: "(71) if the financial and capital market Commission finds that pension funds in the technical reserves established for the creation of fully supports the pension plan and membership agreements, the financial and capital market Commission has the right to require specific technical provisions for the application of the calculation method, to ensure pension plan members and beneficiaries, institutions for occupational retirement provision adequate protection of rights, as well as pension plan and membership obligations in the treaties. ';
Add to article 8.1 part as follows: "(81) if the Pension Fund is involved in cross-border activities and technical reserves are not covered according to the requirements of this law, the pension fund from cross-border activities and the obligations deriving from the divestiture of assets."
15. in article 24: a quarter expressed as follows: "(4) the Management Board of the Pension Fund for each pension plan participant and beneficiary institutions at least once a year, send a written statement of the report period. This report shall indicate the following information: 1) a pension plan for the benefit of the members of the contributions paid;
2 supplementary pension paid to a participant) or the Member of the order of retirement savings for the transferred in the reporting period;
3 the provision of occupational retirement provision;)
4) to apply deductions total members, which includes deductions, pension fund management, the holder of the funds, financial and capital market Commission and other eligible deductions;
5) sworn auditor's name or its certified auditor company firm that has examined the financial statements of the Pension Fund;
6) information as to whether sworn or certified auditor the auditor company opinion is unconditional, with caveats, or is given a negative opinion;
7) information about where a pension plan member can get acquainted with the activities of pension funds annual report. ";
Add to article 4.1 part as follows: "(41) in addition to the Pension Fund in the third and fourth set, ensure that each month the pension plan member information is available about the pension plan performance. The Pension Fund of the relevant information can be made public their homepage on the internet or choose releasing information through other appropriate media or location. "
16. To make article 25 the fifth subparagraph by the following: "(5) the supervisory functions of the financial and capital market Commission is entitled to require the Pension Fund to prepare reports on the Pension Fund and its registered pension plan in accordance with the financial and capital market Commission issued regulatory arrangements for the preparation and submission of these reports."
17. the express article 26, third paragraph as follows: "(3) If an employer who made contributions, has been declared bankrupt and the bankruptcy is initiated, a member can request a transfer of funds accrued to another retirement plan."
18. in article 28: adding to article 4.1 part as follows: "(41) significant change in the situation in the world's financial markets, financial and capital market Commission should have the right to request the Pension Fund immediately to assess the adequacy of the existing investment policy, changes in financial markets and to submit a reasoned decision of the Board of Directors on the current policy in compliance with these changes or amendments required investment policies.";
5.3 and 5.4, part of the expression as follows:

"(53) if the financial and capital market Commission has found the conditions in accordance with article 5.1 allows you to decide on the part of the Pension Fund for the operation of the withdrawal of the licence issued, it is right not to revoke the license, but you must first decide on the expression of warning or the imposition of fines of up to hundred minimum monthly salaries, or suspension of the licence, as well as the deadlines for the correction of infringements detected. If after this period ends in the Pension Fund is not prevented any irregularities, financial and capital market Commission revoke the licence issued to it.
(54) the period of suspension of the licence shall not be longer than six months. Financial and capital market Commission indicate the restrictions that the pension fund should be followed until the suspension of the licence expires. Restrictions within the meaning of this article can be attributed to: 1) new members of the Association;
2) new contributions;
3 the amendment of the Treaty);
4) new pension plan registration.
5) Fund to bail;
6) disposal of the funds transferred to the holder of the holding. ";
to supplement the article with 5.5 part as follows: "(55) financial and capital market Commission issued the administrative act or the withdrawal of the licence suspension appeal shall not suspend the execution of this Act.";
replace the first sentence of the sixth paragraph, the word "orders" with the words "make decisions";
to turn off the second sentence of the sixth paragraph.
19. Add to article 33 of the sixth and seventh paragraph as follows: "(6) If the home State Pension Fund has transferred the funds hold funds in Latvia registered holder and the financial and capital market Commission has received a request from the competent authorities of the host country restrictions on disposal of Latvia registered holder holding the funds released in home State Pension Fund, financial and capital market Commission shall immediately inform the holder of the funds on the limitations and shall take the necessary measures to ensure the execution of the request.
(7) If a pension fund registered in Latvia has transferred the pension plan's funds in the farming country of registered holder of funds and the financial and capital market Commission has applied to the pension fund under article 28 of this law in part 5.4 limits, financial and capital market Commission shall immediately forward the request to the competent authority of the home State for the limit. "
20. the transitional provisions be supplemented by paragraph 13 and 14 by the following: ' 13. Pension funds, which are up to 8.3 of this law the date of entry into force of article has contracted for outsourcing, take the necessary steps to receive outsourcing six months after this law, article 8.3 of the entry into force of the agreements that meet the requirements laid down in this law.
14. Amendment of article 24 of this law with regard to supplement it with a 4.1 share shall enter into force on January 1, 2010. "
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.