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/188929

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; Latvian journal, 2009, 27 No.) the following amendments: 1. Express article 1, paragraph 15 as follows: "15) 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. in article 14: Supplement to the second part of the article as follows: "(2) the financial and capital market Commission refused licenses (permissions), if a credit institution's governing documents provide that the credit institution, including its management, will be based in Latvia and not related to any financial group.";
believe the current text of article about the first part.
3. Supplement article 16, first paragraph, point "a" after the words "Member to the world trade organisation" by the words "as well as legal entities, of which only the Member or shareholder is a member only, the Organization for economic cooperation and development countries".
4. in article 28: Add to the first paragraph after the number and the words "article 19" in words and terms "and article 29 in the fifth part of the criteria set out in";
turn off the first paragraph, the words ' for at least the last three years ";
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), the natural persons, in order to assess the conformity of these parties article 29 of this law in the fifth subparagraph, the criteria laid down."
5. Make the text in article 29 the following: "(1) a Person wishing to obtain a qualifying holding in a credit institution, shall notify in advance and in writing about the financial and capital market Commission. The notification shall specify the extent of the participation percentage of the share capital of the credit institution or the number of shares entitled to vote. 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 credit institution or of the number of voting shares, or if the credit institution 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 participation percentage of the share capital of the credit institution 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 soundness of a credit institution in order to ensure its sustainable and careful management, in which the parties, as well as the potential impact on the credit 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 founders of the credit institution;
2 the person perfect) reputation and professional experience, where the proposed acquisition will be managed as a result of the business of credit institutions;
3) personal financial stability, particularly in connection with planned or carried out economic activities of the credit institution in which the acquisition is proposed;
4) or credit institution 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 the supervisory authorities of credit institutions and to establish the institution of supervision of credit institutions supervision Division 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 a credit institution is not subject to the supervision of credit institutions, insurance companies, reinsurance companies, investment management companies or investment firms supervision or in that person's home (registration) is a foreign country.
(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 credit institution 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 holding in a credit institution.
(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 holdings in the credit institution shall be deemed to accept the person of significant acquisitions or increasing the credit institution.
(10) the seventh subparagraph of this article, paragraph 3 do not apply to legal persons (registered), if its shares are quoted on a regulated market in a Member State or to another regulated market which is the organizer of the international stock exchange Federation full member, and the legal (registered) financial and capital market Commission to provide details of its shareholders who have a significant interest in it.
(11) if the financial and capital market Commission has agreed that a person acquires or increase the qualifying holding in a credit institution, that person is your qualifying holding credit institution acquires or increases not 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 the qualifying holding in a credit institution, financial and capital market Commission approval of its acquisition of a qualifying holding or to increase the credit institution shall lapse. By person motivated written request financial and capital market Commission may decide on the extension of that period.
(12) in the fifth subparagraph of this article, that financial and capital market Commission issued administrative appeal Act shall not suspend its execution. "
6. Put the following text of article 30.1: "considering article 29 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 essential in the relevant Member State registered credit institutions, insurance companies, reinsurers, the investment management company, investment firm or a credit institution established in a Member State, insurance companies, reinsurers, the investment management company or the investment company's parent company or person who controls a credit institution established in a Member State, insurance companies, reinsurers, the investment management company or the investment brokerage company, and if, the person acquiring or increasing the participation of the relevant credit institution becomes the person's subsidiary or come under its control. "
7. To turn off the second subparagraph of article 32.
8. To make the first part of article 39 in the following wording: "(1) a credit institution's exposures is qualified as a great, if exposure to 10 or more percent of the credit institution's own funds."
9. To supplement the law with 59.5 article follows: 59.5 "article. (1) if the Cabinet at the request of the Management Board of the credit institution has adopted a decision on the country's major acquisition or the proposed increase of the credit institution, a credit institution shall be entitled, without the Council of sasa cot shareholders meeting, on behalf of the general meeting to take a decision on the increase of the issued share capital of the credit institution and to approve the capital increase.
(2) the first paragraph of this article, in the cases of the former shareholders of a credit institution is not a prior right to buy shares of a new issue.
(3) increasing the share capital referred to in the first paragraph, the amendment of the articles of Association of the credit institution shall be made by the Council. If the share capital increase within in the rules is not paid the entire new issue nominal value of the shares, the share capital increase is considered not to have occurred and the articles of Association amendments void from the moment of their approval. "
10. Make the text of article 64 the following: "(1) each, which intentionally or inadvertently made public or disclosed to persons not entitled to receive relevant information, news about the credit customer accounts or customers in the financial services, where he entrusted this message or become known as credit to the owner of the shares or, in the Council, Board, internal audit manager or member of the service, the company's controller or trustee credit, Bank employee, financial and capital market Commission or public body employee, representative or certified auditor as article 62 of this law in the fourth or fifth subparagraph of article 110.1 in that person, or as a public body, the Advisory Council, working group, a representative of the Association of persons or a sworn auditor, is criminally liable in accordance with the procedure prescribed by law.

(2) persons who have committed offences referred to in this article, are also punishable if they are committed after the first paragraph of this article persons ceased contractual relations or obligations, or the employment relationship with a credit institution, Bank, financial and capital market Commission, another government body, the Advisory Council, working group, or Association of persons as a sworn auditor. "
11. in article 106.1: make the first paragraph by the following: "(1) the particulars of its borrowers and borrower, guarantor of their commitments and their status within the limits laid down by the Bank of Latvia and the Bank of Latvia on the agenda provides the following commercial companies that provide you with credit risk related financial services: 1);
2) company, which has a close relationship with the bank. "
replace the third, fourth and fifth paragraphs the words ' bank, a subsidiary of the bank, which provides credit risk associated with financial services "(fold) with the words" referred to in the first paragraph of the company (the fold).
12. To complement the 107.1 the first paragraph after the word "exercise" with the words "as well as to get acquainted with the documentation and to obtain explanations and information necessary for verification".
13. Express article 110.1 of the fifth subparagraph of paragraph 1 and 2 as follows: "1) another Member State financial and capital market supervisory authorities and ministries of finance;
2) national institutions, advisory councils, working groups or associations of persons in the Member States or international organisations shall be responsible for the cessation of payment of credit, insolvency, liquidation, crisis management or credit and other financial institutions accounting inspection procedures; ".
14. Express article 172, the first paragraph by the following: "(1) the list of goods included in the credit institution deposits and interest on them, but does not include other holdings in the credit institution belonging to third persons and property of the State funded pension scheme investment plan, private pension fund retirement plan funds, pension plans and insurance agreements for the enforcement of obligations under this condition if the deposit referred to in the contract, and ground vehicle owners civil liability compulsory insurance guarantee fund."
15. Express article 198 the third and fourth subparagraph by the following: "(3) If article 106.1 of the Act referred to in the first subparagraph, the company does not comply with the first paragraph of this article claims or unreasonably require a credit register news, the Bank of Latvia is entitled to impose fines on the company up to 5000 dollars.
(4) for actions that result in a breach of the requirements of the criminal law on money laundering and terrorist financing in the field of prevention, financial and capital market Commission, the credit institution shall impose a fine of up to 100 000 LVL 5000. "
16. transitional provisions be supplemented by 35 the following: "35. Amended this law in article 106.1 and 198 in relation to commercial companies that have close relationships with the bank, with the April 1, 2009."
17. Add to the informative reference to directives of the European Union with the following paragraph 12: "12") 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.