Amendments To The Insurance Companies And The Supervisory Law

Original Language Title: Grozījumi Apdrošināšanas sabiedrību un to uzraudzības likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/188928

The Saeima has adopted and the President promulgated the following laws: the amendments to the insurance companies and the supervisory law to make insurance companies and supervision Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1998, no. 15; 1999, no. 10; 2000, no. 13; 2002; 2003, 12 No No 9; 2004, nr. 2, 14, 2, 14; 2005. No; 2006, nr. 1; 2007, 15. no; 2008, 13. 15., 23., no; Latvian journal, 2009, no. 35) the following amendments: 1. Put 1 article 21 as follows: "21) qualifying holdings — a person or several persons on the agreement jointly work directly or indirectly for participation, which covers 10 and more percent of the company's share capital or of the voting shares or allows significantly affect the company's financial and operational policies;".
2. Turn off the article 10 paragraph 3 of part three.
3. in article 13: turn off the first part of paragraph 6;
to make the second part of paragraph 1 by the following: "1") of the first subparagraph the document referred to in paragraph 1; ".
4. in article 25.2: to supplement the first part after the number and the words "13.2" provisions of article with the words and the number "and article 26 in the fifth part of the criteria set out in";
make the second paragraph as follows: "(2) the financial and capital market Commission should have the right to request information about the people who claim to be substantial participation (essential participation actually graduates or suspected of such acquisition turamaj persons), including the legal (registered) owners (the real beneficiaries) — natural persons to assess compliance with this law, this person's article 26 in the fifth part of the criteria."
5. Make the text of article 26 as follows: "(1) a Person wishing to obtain a qualifying holding in an insurance undertaking, it shall be notified in writing to the above financial and capital market Commission. The notification shall specify the extent of the percentage participation of the share capital of an insurance undertaking or of the number of voting shares. The notification shall be accompanied by financial and capital market laws and regulations of the Commission for the information needed to assess the conformity of a person in the fifth subparagraph of this article, the criteria laid down. Communication of the information to be added to the list published in the financial and capital market Commission's home page on the internet.
(2) If a person wishes to increase his qualifying holding, reaching or exceeding 20, 33 or 50 per cent of the share capital of the insurance undertaking or of the number of voting shares, or if the insurance company becomes a subsidiary of the person, the person concerned shall be notified in writing to the advance financial and capital market Commission. The notification shall specify the extent of the percentage participation of the share capital of an insurance undertaking or of the number of voting shares. The notification shall be accompanied by financial and capital market laws and regulations of the Commission for the information needed to assess the conformity of a person in the fifth subparagraph of this article, the criteria laid down. Communication of the information to be added to the list published in the financial and capital market Commission's home page on the internet.
(3) the financial and capital market Commission within two working days from the day of receipt of the first or second part of the Declaration, or two working days after the financial and capital market Commission requested additional information in writing, inform that person of the notice or additional information is received and the date of the end of the assessment period.
(4) the financial and capital market Commission in the fifth subparagraph of this article within the assessment period, but not later than the working day of the assessment period at 50 has the right to request additional information on the persons referred to in this article in order to assess their compliance with the fifth paragraph of this article, the criteria set out in.
(5) the financial and capital market Commission not later than 60 working days from the date on which the person sent referred to in the third subparagraph, the information on the statement or receipt of the additional information, assess the person's free capital adequacy, financial sustainability and the proposed acquisition of the financial justifications to ensure its insurance company's sustainable and careful management, in which, as well as the person's potential impact on insurance company management and operation. Reviews in the financial and capital market Commission takes into account the following criteria: 1) personal reputation and perfect compliance with the newly formed insurance company shareholders;
2 the person perfect) reputation and professional experience, where the proposed acquisition will be managed as a result of insurance companies activity;
3) personal financial stability, particularly in connection with planned or carried out economic activities of the insurance undertaking in which the acquisition is proposed;
4) or the insurance company will be able to fulfill this law and other laws and regulatory requirements and set out or its enterprise group structure, which it will, without prejudice to the financial and capital market Commission to carry out its statutory supervisory functions, to ensure an efficient exchange of information between supervisory authorities and of the insurer to determine the insurer's supervisory body monitoring the distribution of powers;
5) or there is no reasonable doubt that in connection with the proposed acquisition has been carried out money laundering and terrorist financing, or attempt to do any of the following, or that the proposed acquisition could increase the risk.
If the financial and capital market Commission in accordance with the sixth subparagraph of this article, has stopped the evaluation period, this time not in the assessment period.

(6) requiring the fourth paragraph of this article, that additional information, the financial and capital market Commission has the right to stop once the evaluation period until this information is received, but not more than 20 working days. Financial and capital market Commission has the right to extend the assessment period referred to break up to 30 working days if the person wishing to obtain, has acquired, wants to increase or has increased his qualifying holding in an insurance undertaking are not subject to the insurance companies, reinsurance companies, credit institutions, investment management companies or investment firms supervision or in that person's home (registration) is not a Member State.
(7) the financial and capital market Commission in the fifth subparagraph of this article, within that period, adopt a decision prohibiting a person to acquire or increase qualifying shareholdings in the company, if: 1) person does not meet the criteria laid down in the fifth subparagraph;
2) a person shall not provide, or refuses to provide the financial and capital market Commission, the information specified in this law or the financial and capital market Commission requested additional information;
3) from the person as a result of circumstances it is not possible to provide the information specified in this Act or the financial and capital market Commission requested additional information.
(8) the financial and capital market Commission within two working days, up to a fifth of this article in part of the assessment period, after the seventh part of this article, the adoption of the decision referred to in the send it to the person to whom the prohibition to acquire or increase qualifying shareholdings in the company.
(9) if the financial and capital market Commission of this article within the period referred to in the fifth subparagraph, do not send the person a decision prohibiting that person to acquire or increase qualifying shareholdings in the company, shall be deemed to accept the person of significant acquisitions or to increase the insurance company.
(10) in the fifth subparagraph of this article, paragraph 3 are not applicable to legal persons, if its shares are quoted on the Republic of Latvia or another Member State of the regulated market or in a regulated market, which is the organizer of the international stock exchange Federation full member, and this legal person financial and capital market Commission to provide details of its shareholders who have a significant interest in it.
(11) the financial and capital market Commission under European Union law, suspend the examination for a period not longer than three months, as in the case of a company not registered in a Member State, wants to become the insurance company's parent company.
(12) if the financial and capital market Commission has agreed that a person acquires or increases a substantial holding in a company, that person is your qualifying holding in an insurance undertaking or increase no later than six months from the date when sent referred to in the third subparagraph, the information on the notice or additional information is received. If, on expiry of that period, the person has not been acquired or increased a substantial holding in a company, the financial and capital market Commission approval of its acquisition of a qualifying holding or to increase the company shall lapse. By person motivated written request financial and capital market Commission may decide on the extension of that period.
(13) the seventh subparagraph of this article, that financial and capital market Commission issued administrative appeal Act shall not suspend its execution. "
6. Article 27 shall be expressed by the following text: "assessment of article 26 of this law in the first and second paragraphs of these notifications, financial and capital market Commission consults with the relevant Member State supervisory bodies, if the proposed acquirer is one of the major Member State insurers, reinsurers, credit institutions established in a Member State, the investment management company, investment firm, insurer or Member State Member State Member State the reinsurers, credit institutions, investment management company or the investment company's parent company or person that the insurer, by the Member State Member State Member State the reinsurers, credit institution, investment management company or the investment brokerage company, and if, the person acquiring or increasing the participation of the relevant insurance company becomes the person's subsidiary or come under its control. "
7. Add to the informative reference to directives of the European Union with 20 as follows: "20) of the European Parliament and of the Council of 5 September 2007 of Directive 2007/44/EC, amending Council Directive 92/49/EEC and directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of shareholdings in the financial sector."
The Parliament adopted the law of 26 February 2009.
President Valdis Zatlers in Riga V. 11 March 2009. Editorial Note: the law shall enter into force on the 25th March 2009.