Amendments To The Investment Management Company Law

Original Language Title: Grozījumi Ieguldījumu pārvaldes sabiedrību likumā

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The Saeima has adopted and the President promulgated the following laws: law on investment management company to make the investment management company Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1998, no. 3; 2000, no. 13; 2002, 23 no; 2004, nr. 9, 9. No; 2007; Latvian journal, 2008, 94 no). the amendments are as follows: 1. Article 1: express points 11 and 12 as follows: ' 11) transferable securities, equity securities (shares and other equity securities of the issuer, which attests the participation capital); bonds and other debt securities; other securities that do not limit the rights of disposal of and strengthen the right to purchase those securities transferable subscription or Exchange;
12) money market instruments-liquid debts, which can accurately assess at any time and which are normally dealt in on the money market; ";
Add to article 24 as follows: "24 ten) Group — countries with the International Monetary Fund concluded a general agreement on loans."
2. Make the text of article 5 by the following: "(1) the company's main activity is the management of investment funds. Investment fund governance includes the following services: 1) the investment management of the Fund;
2) Fund Administration, which includes the following activities: (a) the legal and accounting Fund) issue sorting, b) provision of information by the investors of the Fund or any other public customers, c) at the request of the Fund investment certificates of value and price, d) Fund regulatory compliance monitoring, e) the Fund's distribution of income, f) emission and the units atpakaļpirkšan, g) settlement of contractual obligations, h) associated with the Fund's resources in the transaction listing sort , i) the units of the Fund holder register sorting;
3) Fund marketing (advertising, distribution units, marketing research and other similar services).
(2) in addition to the public referred to in the first subparagraph the activity may take the investor's portfolio of financial instruments in the management of the individual in accordance with the investor's mandate also manage pension funds, if this portfolio consists of one or more financial instruments, which are subject to the law on the financial instruments market.
(3) a company to which this law has been issued a license in the second part of the provision of the services may provide advice on investments in financial instruments and make the investment certificates of investment funds holding and administration.
(4) the company shall provide only for the second part of this article in the services, as well as in the third paragraph of this article, these additional services, if under this Act is not permitted to give the second part of this article, the services. "
3. in article 8: make the fourth paragraph as follows: "(4) Notwithstanding the provisions of the third subparagraph, the minimum initial capital and an additional amount of own funds in the total amount of no more than 10 million euros equivalent in lats at the rate of the Bank of Latvia."
Add to paragraph 1, sixth subparagraph after the word "capital" by the words "and the additional amount of own funds calculated in accordance with the third paragraph of this article the requirements";
to make the eighth and ninth subparagraph by the following: "(8) where the company provides in article 5 of this law in the second and third subparagraphs in question it shall operate in and execute investment brokerage firms in certain capital requirements, exposure limits and requirements of consolidated supervision. The above requirements do not apply to the State funded pension scheme management in accordance with the laws of the State funded pension and private pension fund established a pension plan management according to the law "on private pension funds."
(9) the procedure for calculation of the own funds shall be determined by the Commission. "
4. Article 13: to supplement the first part with the 2.1 point as follows: "21) provides internal control system that covers all the company's operational risk management;"
Add to article 1.1 part as follows: "(11) the company that manages the Fund's investment certificate holder, is responsible for fund investors and third parties for loss suffered if the company failed to comply with the regulations of the Fund's investment certificate holders register sorting.";
to make the second part of paragraph 6 by the following: "6) follow and comply with other requirements, in accordance with the financial instruments market law is chapter XII of the investment brokerage firms, investors make financial management in accordance with the individual investor empowerment, provide advice on investments in financial instruments and financial instruments held;"
Add to the second part of paragraph 7 as follows: "7) follow and comply with the law on the financial instruments market investment brokerage firm to determine requirements for outsourcing delegation."
5. Article 19: to supplement the first sentence with the following: "evaluating the company's reorganization process, the Commission, in order to ensure the protection of the interests of investors, in addition to the duties listed in commercial law may impose an obligation to society to execute a certain reorganisation conditions.";
to turn off the second paragraph, the words "referred to in this article shall be subject to the additional provisions";
turn off the third, fourth and fifth;
replace the sixth paragraph, the words "start" with the word "Finish".
6. in article 28: make a fifth by the following: "(5) if the Charter is amended, the company shall submit to the Commission an application for the registration of the amendments to the regulations. The application shall be accompanied by: 1) the respective governing bodies of public decision on the approval of amendments to the Statute;
2) Charter amendments designed according to the model established by the Commission. If the document is in paper form, it shall be submitted in two copies;
3) Fund rules, the text of which is included in the amendment. The text of the regulation the application shall be accompanied by electronic media. ";
replace the number in the sixth paragraph and the words "15 days" with a number and the word "within 15 working days".
7. Article 33: express the twelfth part of the first sentence the following wording: "the public should not be at the expense of the Fund to sell financial instruments or commitments for the sale of financial instruments, if at the time of conclusion of the transaction, not the property of the Foundation."
make part of the fourteenth as follows: "(14) public shareholders who have a significant interest in, the company may invest in companies established in the investment funds, shareholder investing Fund or fund exited without violating other fund investors ' legitimate interests.";
Supplement to the sixteenth and seventeenth article of the following wording: "(16) for the administration of the Fund and receiving collateral under the financial collateral arrangements concluded by guarantees, through asset sales, repurchase, as well as lend securities or other transferable securities of the Fund and money market instruments affiliated transactions, make sure that the transactions that ensure efficient investment portfolio of the Fund management.
(17) investment portfolio of the Fund effective management is provided if the sixteenth part of this article in the transactions that meet the following criteria: 1) their use is reasonable and cost-effective;
2) for at least one of the following purposes: (a), (b) risk reduction)) cost reduction, (c) the net value of the Fund or) income to increase according to the risk profile of the Fund's investments and 66 of this Act referred to in article investment limits;
3) related risks are adequately contained in the Fund's risk management process. "
8. Supplement article 38 in the first part of the sentence the following wording: "winding-up costs are not included in the mediation payments linked to real estate marketing. The following charges apply to the expenditure of the Fund, which is paid from the Fund's assets, and it specifies the maximum amount of management regulations of the Fund. "
9. Express article 40 the second paragraph as follows: "(2) a custodian may be recorded by the bank in Latvia, which has launched an investment and the provision of additional services, including the holding of financial instruments, or registered in a Member State of the branch of the bank of Latvia, if the bank is entitled to provide investment services and additional services, including to hold financial instruments."
10. Article 56: make the fifth subparagraph of point 2 and 3 as follows: "2) amendments to the fund prospectus, which are designed according to the model laid down by the Commission. If the document is in paper form, it shall be submitted in two copies;
3) fund prospectus, which includes the amendments. The text of the prospectus filed by electronic media. ";
replace the number in the sixth paragraph and the words "15 days" with a number and the word "within 15 working days".
11. Article 57: make the first part of paragraph 5 by the following: "5) sworn auditor of the Fund name or certified auditor commercial companies the firm;"
make the fifth subparagraph of paragraph 1 by the following:

"the investment certificates of the Fund 1) the issue price, volume and time, but if the emissions are expected to make several releases, also indicate the release investment certificates emission procedure;"
Supplement fifth paragraph 4 by the following: "4) real estate evaluation order, if the Fund planned to invest in real estate or the right to use it."
12. in article 61: Add to the third paragraph after the word "precious" with the words "or" goods ";
to make a fifth by the following: "(5) by investing the Fund's expense, the company is obliged to invest only in investment fund prospectus in the facilities, to comply with the investment restrictions laid down in it, get enough information about the potential or the resulting investment objects, as well as to continuously monitor and analyze the financial standing of the persons whose financial instruments are or will be invested in the Fund."
to supplement the article with the sixth part as follows: "(6) the Commission shall determine the criteria for fund investment object opened with the requirements of this law."
13. Express article 62 the following: ' article 62. Investment in transferable securities and money market instruments (1) a fund may invest in transferable securities and money market instruments, which meet at least one of the following conditions: 1 they are traded in Latvia) or other Member State markets;
2) are included in the official stock exchange lists or are traded on other regulated markets that are not in the first paragraph of this article referred to in paragraph 1 and the following of the Exchange or market choice is provided in the prospectus of the Fund;
3) not included in the official stock exchange lists or are not traded on regulated markets, but those securities or money market instruments for emissions rules that will be filed this application for securities or money market instruments for inclusion in the first part of this article 1 and referred to in paragraph 2 of the stock exchange officially listed or dealt in on regulated markets and the securities or money market instruments will include one year from the date of When launched, subscription to these securities or money market instruments.
(2) the Fund may invest in money market instruments that are not traded on regulated markets, where they are freely transferable (there is no restrictive business conditions) and one of the following conditions: 1) it is issued or guaranteed by Latvia, other Member States or local authorities of those countries, other national (Federal State, one of the members of the Federation) and international financial institutions, where one or more Member States are members thereof;
2) emits or guaranteed by Latvia or another Member State, the central bank, the European Central bank or the European investment bank;
3) it emits a company the securities of which are admitted to the first part of this article 1 and 2 set out in the order;
4) emits or guaranteed by a credit institution established in the Member State in which the activities and monitor the financial services supervisory authorities in accordance with European Union requirements or, where the issuer of the regulatory requirements of the operation are at least as strict as laid down in the European Union and who meets at least one of the following requirements: (a) it is registered) organisation for economic co-operation and development in a Member State, within the Group of ten, b) then is assigned a rating of investment level the activities of the issuer, c) the legal framework of the in-depth analysis shows that the operation of the regulatory requirements are at least as strict as laid down in the European Union;
5) it emits a company whose capital and reserves amount to 10 million euros equivalent in lats at the rate of the Bank of Latvia or higher and which prepares and publishes annual reports audited according to the annual report preparation and publishing requirements, equivalent to the European Union. This company has one group with one or more companies whose shares are traded on a regulated market, and is designed to attract funds to the group, or such a company has created a special purpose entity, which is specialized in debt and vērtspapīrizēšan of liquidity is the agreement with the bank that complies with this part, in paragraph 4, the requirements to the credit institution. On the investment in money market instruments subject to investor protection equivalent to those parts 1, 2, 3, and 4. the protection referred to in paragraph 1. "
14. Express article 63, the first paragraph by the following: "(1) a fund may deposit the credit institution that received a licence for the operation of the credit institution in Latvia, or in another Member State of the Organisation for economic cooperation and development in a Member State, within the Group of ten."
15. Express 64. the second part of paragraph 1 by the following: "1) they are established in the country in which the legal framework provides for the monitoring of such companies-governmental equivalent to this statutory supervision, and the national supervisory authorities shall cooperate with the Commission;".
16. in article 65: make the first paragraph by the following: "(1) a fund may invest in derivative financial instruments that are admitted to this law, the first subparagraph of article 62 of the said markets or are not admitted to trading on a regulated market and simultaneously meet the following requirements: 1) it is the underlying this Law 62, 63 and 64 referred to in article financial instruments, financial indices, interest rates, currency exchange rates or currencies, in which, in accordance with the fund prospectus or fund management regulations is expected to make a contribution to the Fund;
2) not traded on a regulated market in financial derivatives the counterparty is a credit institution that complies with this law, article 63, first paragraph, or in investment brokerage company whose capital and reserves amounting to 10 million euros equivalent in lats at the rate of the Bank of Latvia or higher, which is registered in the Member State or the Organisation for economic cooperation and development in a Member State, within the Group of ten, and that the financial services supervisory authority;
3) takes place each day, not traded on a regulated market of derivative financial instruments of reliable and verifiable valuation and at any time at the initiative of the public derivative financial instruments on its true value can be sold, destroyed or to carry out a transaction that results in the closed position (claims or obligations relating to financial instruments). ";
to make the third part of the second sentence as follows: "the company shall determine the financial derivatives valuation policies and practices that ensure a regulated market traded derivative financial instrument for accurate and independent assessment."
to make the fourth subparagraph by the following: "(4) If the invoice for the Fund to carry out a transaction in financial derivatives, before the commencement of such operations the company shall prepare, approve and submit to the Commission the provisions, which described in detail the risk management policy and financial derivatives valuation methods, as well as provide information about the use of financial derivatives, the resulting risks, the quantitative limits and the methods which will be used in the derivative financial instrument would limit the risks."
17. Article 66: make the fourth paragraph as follows: "(4) the investment of the Fund one transferable securities of the issuer may be increased up to 25 percent of the Fund's assets, if they are in another Member State or in Latvia registered debt securities issued by the credit institution in which the secured obligation made for the resulting funds to invest in securities traded throughout the show fully supports those commitments, and to strengthen this commitment is achievable in this priority securities in the event of insolvency of the issuer.";
to make the seventh part of the first sentence as follows: "the total risks arising from transactions in financial derivatives, including transferable securities or money market instruments contained in financial derivatives, may not exceed the Fund's investment portfolio net value.";
adding to the thirteenth part of "after the words and numbers to 10 percent of" with the word "open";
make part of the fourteenth as follows: "(14) Closed the Fund may invest in investment objects, which do not comply with this law, 61, 62, 63, 64 and the requirements of article 65, as well as exempt from the application of this article certain investment restrictions, if such investments and other investment restrictions are laid down in the prospectus of the Fund."
18. Put article 68 the third paragraph as follows: "(3) the company itself is not entitled to manage real estate."
19. Make 72. the second subparagraph by the following: "(2) if it is necessary for the performance of supervisory functions, the Commission should have the right to request other Fund reports, the preparation and submission of the report."
20. Make the first paragraph of article 75.1 by the following: "(1) the company shall keep accounts and the annual report shall be prepared in accordance with the law" on accounting ", this law and the regulations of the Commission."
21. Supplement article 75.3 with a second sentence as follows:

"Sub of the annual and half-yearly reports on the value measure of the public's right to use the relevant sub-Fund also imposed currency."
22. Supplement article 90 of the first part of paragraph 3 with the following: "3) such issuer and issued debt securities category that corresponds to this law, article 66 of the fourth part. This information shall be accompanied by a report showing debt securities strengthened the status of obligations. "
23. the transitional provisions be supplemented by the following paragraph 27:27. Article 33 of this law in the sixteenth and seventeenth paragraph, article 61, sixth paragraph, article 62, paragraph 2 and article 65, the first part of the new version shall enter into force on 23 July 2008. "
24. Add to the informative reference to directives of the European Union with paragraph 10 by the following: ' 10) Commission of 19 March 2007 of Directive 2007/16/EC implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), the clarification of certain definitions. "
The law adopted by the Parliament in June 19, 2008.
President Valdis Zatlers in Riga V. 9 July 2008. Editorial Note: the law shall enter into force on 23 July 2008.

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