Amendments To The Law On The Financial Instruments Market

Original Language Title: Grozījumi Finanšu instrumentu tirgus likumā

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The Saeima has adopted and the President promulgated the following laws: the law on the financial instruments market to make the law on the financial instruments market (and of the Parliament of the Republic of Latvia Cabinet of Ministers rapporteur, 2004, no. 2; 2005, 10, 14; 2006, nr. 14. No; 2007, nr. 10) follows: 1. Article 1: turn off paragraph 4; Express 24 as follows: "24) financial institution: a company set up to provide one or more financial services (except deposits and other repayable funds attraction) or for participation in the share capital of other companies;" Express 32 as follows: "32) transferable securities: securities where the right of disposal not limited, except means of payment. Such securities are: (a)) equity securities, b), c) debt securities other securities which secured rights to buy or dispose of transferable securities or to settle in cash, set by the transferable securities, currencies, interest rates, commodities or other underlying asset; "; Express 37 as follows: 37 ") the host Member State — the State in which the public offer is made or requested the inclusion of transferable securities on a regulated market, or the country in which the investment firm or credit institution has a branch or provides investment services or investment requirement, or the country in which the operator of the regulated market shall take the appropriate steps to promote this country's existing market access to its trading system from a distance If this country is different from the home Member State; " Supplement to the article 53, 54, 55, 56, 57, 58, 59, 60, 61 and 62 by the following: "53) multilateral trading system — the system that maintains the investment brokerage firm, a credit institution or the market Organizer, and which, subject to equivalent conditions combine third-party financial instrument purchase and sales orders that sealed the deal; 54) multilateral trading system maintainer (operators) — investment brokerage firm, a credit institution or a market operator, which in accordance with the rules of the system supports its activities; 55) tied agent: the natural or legal person that one of the investment firms or credit institutions on behalf of customers or potential customers to advertise investment services or additional services, provided by the investment firm or a credit institution, receives from customers and send them the instructions and orders in respect of investment services or financial instruments, places financial instruments or provides advice to clients or prospective clients in respect of those financial instruments or services; 56) agent linked to the person responsible — self-employed person, an associated member of the Executive of the agent or other person, which, according to their competence linked to agent management level responsible for the tied agent's professional activity; 57) a systematic internaliser, investment firm or a credit institution, which, on an organised, frequent and systematic basis, deals on own account by executing client orders outside a regulated market or a multilateral trading system; 58) restrictive order, order to buy or sell a specific amount of financial instruments on special set price or for a better price; 59) provision of advice on investments in financial instruments — the customer or the customer's suitable individual circumstances warranted the provision of personal recommendations to a client for a single transaction or several transactions with financial instruments, recommending a buy, sell, subscribe for, Exchange, keep, ransom, to deploy a specific financial instrument or use or use with certain resist financial instrument the rights granted by the investment firm or a credit institution provides at the customer's request or on its own initiative and not distributed to the public; 60) Professional client — the client that has the experience, knowledge and expertise to independently make investment decisions and properly assess the risks he takes; 61) private client — a client who is not a Professional client; 62) financial analyst-investment firms or credit institutions that developed the employee contribution to the study of content. " 2. in article 3: to make part two of paragraph 4 by the following: "4) the following derivatives: a) options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, giving article 3 of this law the fifth requirement referred to in paragraph 5, with interest rates, yields, or other derivatives, financial indices or financial measures which provide for the conditions of settlement in cash or other financial instruments , b) options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that conditions made for settlement in cash or the ability to pay in cash the check of one of the parties, if it's not related to the termination of the contract due to default or other termination of the contractual relationship, c) options, futures, swaps, and any other derivative contracts associated with the goods and conditions which provide for settlement by physical delivery of the goods when they are traded on a regulated market or a multilateral trading system, d) options, futures, swaps, and any other derivative contracts relating to commodities, but not mentioned in the "c" section, which provides for the conditions to settlement by physical delivery of the goods not intended for commercial purposes and have different properties of derivatives in accordance with European Commission Regulation (EC) no 1287/2006 implementing European Parliament and Council Directive 2004/39/EC as regards the obligation for investment firms to take accounting, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms in the directive (hereinafter referred to as the European Commission Regulation No. 1287/2006), article 38, if they are made in clearing and settlement of recognised clearing entities and they are obliged to make contributions to the guarantee , e) derivative instruments for the transfer of credit risk, f) financial contracts for differences, g) options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic changes, the freight rates, pollution law, the rate of inflation or other official economic statistics and the conditions which provide for settlement in cash or the ability to pay in cash the check of one of the parties, if it's not related to the termination of the contract due to default or contractual relations or disruption as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not previously mentioned in this paragraph and in accordance with the European Commission Regulation No. 1287/2006 article 38 of other derivative financial instruments, if these instruments traded on a regulated market or a multilateral trading system, as they have done in clearing and settlement of recognised clearing entities and they are obliged to make contributions to the guarantee , h) other derivative commodity instruments listed in the European Commission Regulation No. 1287/2006 article 39; "; turn off the second part of paragraph 5; to make the fourth paragraph 3 by the following: "3) Investor managing individual financial instruments in accordance with the mandate of investors (portfolio management services);"; adding to the fourth subparagraph of paragraph 9 with the following: "9) multilateral trading system maintenance." Supplement fifth with points 7 and 8 as follows: "7) investment research, financial analysis, or other provision of General recommendation relating to transactions in financial instruments; 8) in the fourth paragraph of this article, those investment services and investment in the provision of additional services in relation to the second paragraph of this article 4, point "b", "c", "d", "g" and "h" referred to the derivatives underlying asset if it is related to the provision of investment services. " 3. Supplement article 3.1 to eighth by the following: "(8) in relation to the regulated market of the Member State of origin: the Member State in which the operator of the regulated market is registered and in which it received a license to organize the regulated market or where the organizer of regulated market management (commercial seat) and it received the license of the regulated market." 4. Express article 10, second subparagraph by the following: "(2) the Commission, in assessing this law referred to in article 9 notifications, consult the management authority of the Member State concerned, if the proposed acquirer is an essential investment in the company is licensed in another Member State of the investment firm, credit institution, investment management firm or an insurance company, licensed in another Member State of the investment firm, a credit institution, investment management the company or the insurance company's parent company, a person who controls the other Member State-licensed investment brokerage company, credit institution, investment management firm or an insurance company, and if, the person acquiring or increasing the qualifying holding, an investment brokerage company becomes the person's subsidiary or come under its control. " 5. Supplement article 17 with the ninth subparagraph by the following: "(9) If the issuer decides after the initial deployment is complete, submit an application for the admission of securities to a regulated market, the issuer shall comply with article 41 of this law the second part for internal rule making." 6. Article 25: replace the first paragraph, the words "the provisions of the Commission" with the words "the provisions of Commission regulations"; make the third paragraph as follows: "(3) the market organizer can organize one or more regulated market. The market organizer shall also be entitled to maintain a multilateral trading system. " 7. Article 27: replace the first paragraph, the words "the provisions of the Commission" with the words "the provisions of Commission regulations"; Add to article 2.1 part as follows: "(21) the market organizer shall take the necessary measures to: 1) identify and manage potential conflicts of interest between the organizer of the regulated market or the interests of its shareholders and to ensure stable operation of the regulated market, as well as to prevent such conflict of interest, the adverse impact on the operation of the regulated market or for its members ' interests, in particular where such conflicts of interest can be detrimental to the regulated market to the Organizer the right to perform market surveillance function; 2) identified the risks to which it is exposed, and this risk is adequately managed; 3) ensure the technical functioning of the system for proper management, including developing an action plan system to control risks in an emergency; 4) ensure the efficient and timely finalisation of the transactions executed under its systems. "; to supplement the article with the eleventh subparagraph by the following: "(11) the market Organizer in its homepage on the internet the list of the shareholders or members that have qualifying holdings, the organizer of the regulated market, and the capital of this list constantly updated." 8. in article 28: make the fifth subparagraph of paragraph 5 by the following: "5) market organizer's admission and exclusion of members, members ' rights and obligations, as well as the suspension of the status of members and professional requirements in the Member State's public employees, who make transactions on a regulated market;"; to supplement the article with the sixth part as follows: "(6) the market Organizer, developing the fifth subparagraph of this article 1 provisions referred to in paragraph, take into account the European Commission Regulation No. 1287/2006 35, 36 and 37 and article for inclusion of financial instruments on a regulated market." 9. Article 30: make the first part of paragraph 2 subparagraph "b" as follows: "(b)) legal persons — a firm, legal address, registration number and location. Abroad and in other Member States registered legal entities shall also submit a copy of the registration documents; " to supplement the article with the sixth part as follows: "(6) the Commission may refuse to approve amendments to the documents, if the expected changes in the threat to financially sound, prudent and appropriate laws and organising activities of the regulated market." 10. Add to article 31 of the third part as follows: "(3) if the person fulfils the obligations of the members of the administrative organ in another market in which the organising of this law or of the Member States legislative agenda received the license for the organisation of the regulated market, it is considered appropriate that this article is the first part." 11. Supplement article 34 with 7, 8 and 9 of the following paragraph: "7) the market organizer has not started operations within 12 months of the date of issue of the licence; 8) the market organizer has not carried out the operations specified in the licence for more than six months; 9) it is established that the market Organizer, no longer meets the requirements set out in this Act a licence. " 12. Article 36: replace the third paragraph, the words "Member States" with the words "Member States"; replace the fourth subparagraph, the words ' the Member State "by the words" in another Member State "; to make the seventh subparagraph by the following: "(7) the market organizer shall be entitled to grant membership status a person not mentioned in the second and third subparagraphs, but according to market criteria approved by the Organizer is suitable and adequate, which is a sufficient level of trading ability and competence on a regulated market and who has sufficient resources and organizational structure to carry out the regulated market of the Member's duties and the organiser guarantee adequate settlement of transactions."; Add to article at the eighth, ninth, tenth and eleventh subparagraph by the following: "(8) the market organizer shall ensure equal rights for all members of the market Organizer. The market Organizer, dealing a regulated market, as regards the other members of the market organizer shall be entitled not to apply this law, 126, 126.1, 126.2, 128.1 and 128.2, 128, the requirements referred to in article 128.3. (9) the market organizer shall submit to the Commission a list of the members of the market Organizer and immediately inform the Commission of the list of the amendments and additions. (10) the market Organizer provides the market organizer's members the right for conclusion of transactions on a regulated market to designate settlement system other than offering the market Organizer. (11) the tenth part of this article, the rights referred to apply where: 1) between the market organizer of the proposed financial instrument accounting system and designated settlement system there such a link or mechanism that ensures efficient and economic settlement; 2) technical conditions for settlement of transactions concluded on the regulated market through a settlement system other than that offers the market organizer shall ensure the proper functioning of the financial market. " 13. off article 37. 14. Article 38 be expressed as follows: "article 38. Information on transactions with financial instruments disclosures (1) the market Organizer in accordance with the European Commission Regulation No. 1287/2006, article 29 and 30 of the requirements during normal trading hours permanently and subject to reasonable commercial conditions make publicly available information on the regulated market of the shares included in the purchase and sales price and the purchase and sale of the submitted task volume at those prices. (2) the Commission may exempt the market organizer of the first paragraph of this article of the disclosure obligation, depending on the market model and the type and size of orders in the European Commission Regulation No. 1287/2006 3, 18, 19 and 20 in the cases specified in article, especially if the transaction amount exceeds the stock or stock category normal market size. (3) the market Organizer, under the European Commission Regulation No. 1287/2006 3, 27 and 29, public information on transactions with shares listed on a regulated market, based on trading conditions as close as possible to the time of closing of the transaction. (4) the market Organizer with the prior agreement of the Commission the European Commission Regulation No. 1287/2006 28 in accordance with the procedure laid down in article can delay the first paragraph of this article, the disclosure of the information to market participants and the public, if a transaction exceeds the amount of the stock or stock category normal trading volume. The market organizer shall inform market participants of the disclosure conditions and delay mechanism accepted by the Commission. (5) the market Organizer, subject to reasonable commercial conditions, have the right to share your system information on investment companies and credit institutions provided the stock quoted prices and investment brokerage company and credit transactions, which they are obligated to disclose in accordance with this law and article "133.8 133.7 15. To supplement the law with 24.3 and 24.4 article as follows: "article 24.3. Licensed in another Member State market organizer's activity in the Republic of Latvia (1) registered in another Member State market Organizer, which received the license for the Organization, the regulated market shall be entitled to take action in the Republic of Latvia, the Republic of Latvia to promote registered investment firms and credit institutions access to the regulated market. (2) registered in another Member State market the Organizer is entitled to launch the first part of the activities in the Republic of Latvia after the Commission has received a notice from the organizer of the market surveillance authorities of the country of origin. (3) the Commission has the right to require the market organizer's home country supervisory institution of the identifying data on the Republic of Latvia registered investment brokerage firm and the credit institution or other person who is licensed in this State, the members of the market Organizer. (4) If a registered in another Member State market organizer's actions in the Republic of Latvia in accordance with the European Commission Regulation No. 1287/2006 16 the criteria laid down in article becomes especially significant financial instruments market and investor protection, the Commission, the Member States concerned shall agree on the supervisory institutions proportionate cooperation methods. Article 39.2. In The Republic Of Latvia licensed market organizer activity in another Member State (1) in the Republic of Latvia registered market Organizer, which received the license for the Organization, the regulated market shall be entitled to take action in another Member State, to facilitate this contribution established brokerage firms and credit institutions access to the regulated market. (2) is registered in the Republic of Latvia the market organizer who wants to start in one of the Member States, shall submit to the Commission an application indicating that country. (3) an application for the initiation of activities in another Member State, the Commission shall examine the application within 30 days from the date of receipt of its decision and inform the market Organizer and the management authority of the Member State concerned. The market Organizer, you can start the Commission has informed the supervisory authorities of the Member State concerned. (4) the Commission, at the request of the supervisory organ shall transmit personally identifiable data about investment brokerage firm and the credit institution or other person who is established in that Member State and which is licensed in the Republic of Latvia the market Organizer. (5) to ensure the settlement of transactions on a regulated market, the market organizer shall be entitled to conclude the agreement on access to the Centre of the clearing, central counterparty or a settlement system of another Member State. The Commission may restrict the conclusion of such an agreement only if it can be shown that these measures interfere with the proper operation of the regulated market. The Commission shall take into account the supervision and monitoring of the system by other clearing and settlement systems oversight or enforcement agency. " 16. Add to article 40 of the sixth subparagraph by the following: "(6) the Commission is responsible for cooperation with other supervisory authorities of the Member States, to ensure that the regulated market under the supervision of an organizer." 17. To complement the chapter I with 24.9 the following article: "article 24.9. Authorised in another Member State under the supervision of the market Organizer (1) registered in another Member State market operator that operates in the Republic of Latvia, an activity which is contrary to the Republic of Latvia the applicable financial instruments market-regulating laws and regulations, the Commission shall immediately inform the management authority of the State of origin and to prevent any contact offences, as well as to inform it of the measures taken. (2) if the registered in another Member State market organizer that works in the Republic of Latvia continues to take actions which are contrary to the Republic of Latvia the applicable financial instruments market-regulating laws, or if the supervisory measures taken by the institution proves ineffective, the Commission shall inform the management authority of the country of origin and take steps to prevent such infringements. This action within the Commission is entitled to prohibit the prevention of abuse of the market organizer concerned to continue operation in the Republic of Latvia. The Commission of the measures taken in accordance with article 147 of this law, shall inform the European Commission requirements. " 18. Make article 41 the following: "article 41. General requirements for the admission of financial instruments regulated markets (1) regulated markets may include financial instruments, which is not limited to the disposal. (2) including transferable securities to trading on a regulated market requires the publication of a prospectus drawn up according to the requirements of this chapter, and to draw up internal rules of the issuer's internal information holders list creation and maintenance, as well as the order in which the issuer's internal information holders list includes persons may carry out transactions with financial instruments or the issuers child on commodities. (3) the transferable securities listed on a regulated market, the issuer or the person seeking the admission of transferable securities on a regulated market, the application shall be accompanied by a prospectus prepared in accordance with this law and the European Commission Regulation No. 809/2004 registered as well as the Commission. (4) If a regulated market to include in the article 3 of this law, the seventh part 2., 4., 9, and 10. transferable securities as referred to in paragraph 1, the issuer or the person who requested the admission of securities to a regulated market shall be entitled to prepare a prospectus on a voluntary basis. (5) the requirements for the inclusion of other financial instruments on a regulated market to determine the relevant market Organizer. Requirements for derivative financial instruments and commodity derivatives into the regulated market shall be such as to ensure that the terms of the derivative contract allows for exact pricing and effective settlement conditions. (6) a decision on the inclusion of financial instruments regulated markets, the market organizer shall be adopted by the Management Board on the basis of the application of the issuer or the person who requested the admission of securities to a regulated market. (7) the transferable securities, which are included in one regulated market without the issuer's consent may be included in another regulated market. The organizer of the regulated market on which the transferable security included without the issuer's consent, inform the issuer. In this case, the issuer is released from the obligation under section II (D) of this Act and the requirements of chapter III to provide information to the market Organizer on the regulated market of which the transferable security included without the issuer's consent. (8) where transferable securities which are listed on the regulated market without the issuer's consent, is starting to market the multilateral trading system, the issuer is released from the obligation to disclose information to the multilateral trading system, if the system has determined the prosecution disclosure of information. " 19. Add to article 48 of the first part of paragraph 3 with the following: "3) issuer's rules made for internal information holders list creation and maintenance, as well as the arrangements for the internal information holders list includes persons may carry out transactions with financial instruments or the issuers child on commodities." 20. Supplement article 55 with 4.1 part as follows: "(41) decision on the suspension of financial instruments or financial instruments of exclusion from a regulated market it to the public immediately by the organizer and shall inform the Commission of any such decision." 21. the express article 86 the following: ' article 86. Internal information holders (1) issuers whose financial instruments are traded in a regulated market, draw up internal rules on internal information holders to create lists. These internal rules, the issuer shall promptly submit to the Commission at its request. (2) the issuer not later than by the date of its financial instruments are included in the regulated market, draw up a list of internal information holders. The list includes information about the issuer: 1) the issuer's Board of Directors and Council members and internal auditors (public Inspector); 2) to other persons (employees of the issuer), which according to the job description come inside information; 3) other leading employees who are not in the second part of the institutions referred to in paragraph 1, but who constantly lies with the issuer directly or indirectly related to inside information and decisions which may affect the operation and development of the issuer; 4) persons associated with the second paragraph of article 1 and paragraph 3. Related persons are to be considered as: spouse, under the auspices of the existing children, other relatives, with at least a year with the said person has a common holding, any legal person, if the regulatory duties or directly or indirectly controlled by such legal persons that the second paragraph of article 1 and paragraph 3 of that person or that person's spouse, under the auspices of the existing children or relatives mentioned in this paragraph. (3) the holder of the Insider issuer list specifies the following information: 1) inside information holder personally identifiable data (natural persons — residents: name, surname, personal code; natural persons-non-residents: first name, last name, date of birth, identity document number and date of issue, the institution which issued the document; the entities — firm, legal address, registration number and location); 2 the reasons for the inclusion of persons) internal information holders list; 3) years and the date on which the list was drawn up, and, if it is amended, the amendment date. (4) the insider list of holders of the issuer shall submit to the Commission within five working days following the inclusion of a financial instrument on the regulated market. (5) the issuer has the right to request that the second paragraph of article 1 and paragraph 3 above persons information on related parties to create and maintain internal information holders list. (6) the issuer is obliged insider list of holders and the information it contains to use only duty. Anyone who intentionally or unintentionally made public or disclosed to persons not entitled to this information, the issuer's internal information holders list contains messages, if this information was entrusted to or became known as the issuer's shareholders, Board, Board of management, the internal audit service, Member or employee is called to criminal liability in accordance with the procedure prescribed by law. (7) the issuer shall develop internal rules of procedures for internal information holders list includes persons may carry out transactions with financial instruments or the issuers child on commodities. These internal rules, the issuer shall promptly submit to the Commission at its request. (8) the issuer shall inform the holder of the internal information of the persons included in the list for its inclusion in this list and introduces the issuer's internal rules on the procedures for internal information holders list includes persons may carry out transactions with financial instruments or the issuers child on commodities. (9) the second paragraph of article 1 and 3 the persons referred to in point 1 must:) to inform the related persons for their inclusion in the issuer's internal information holders list; 2) to inform the related parties of the issuer's internal rules relating to the arrangements for the internal information holders list includes persons may carry out transactions with the issuer's financial instruments or commodity derivative instruments; 3) provide the required information to the issuer's internal information holders to create and maintain a list of relevant persons associated with these persons and to immediately notify the issuer, a change in the third paragraph of this article 1 or in the information referred to in paragraph 2, the persons concerned. (10) the amendments to the internal list of holders of information, the issuer shall be made immediately if it is supplemented with information on the new internal information holders, where a change in the internal information of the holder of the third part of this article 1 or 2 of the information referred to in paragraph or if inside information is no longer available to the person giving the year and date from which the relevant information is available to the person or is no longer available. (11) following the amendment of internal information holders list, issuer shall forthwith communicate to the Commission the new internal information holders list with amendments contained therein. (12) the issuer shall be stored in the internal information holders list and amendments made to the information on the 10 most recent years, ensuring that internal information holders in this amendment of the list it is possible to track. (13) the Commission shall ensure that investment firms and credit institutions, which are entitled to provide investment services in the Republic of Latvia, the existing approach to the current holder of the Insider issuer list. (14) investment brokerage company and the credit institution is obliged, in accordance with the thirteenth paragraph of this article, the information available to it to use only duty. Anyone who intentionally or unintentionally made public or disclosed to persons not entitled to this information, the issuer's internal information lists specified messages if this information was entrusted to or became known as the investment firm or credit institution or part owner of the shareholder, Board, Board of management, the internal audit service, Member or employee, is criminally liable in accordance with the procedure prescribed by law. (15) the Commission issued rules and regulations for internal information holders list submission procedure and on access to internal information holders lists. " 22. in article 86.1: replace the first and second part number and the words "in article 86 the first" with a number and the words "article 86 of the second"; to complement the fourth paragraph after the word "receipt" with the words "subject to the individual requirements of data protection". 23. Replace article 87 of the tenth paragraph, the words "the provisions of the Commission" with the words "rules and regulations of the Commission". 24. Article 92: replace the first paragraph, the words "the provisions of the Commission" with the words "the provisions of Commission regulations"; make the third paragraph as follows: "(3) in the Republic of Latvia only the central depository is entitled: 1) in the cases specified in this Act and in order to post and list existing publicly traded financial instruments; 2) provide identification signs (ISIN code); 3) to exchange financial instruments transfer operations between the central depository open investment firms and credit institutions financial instruments accounts; 4) organize and manage settlement operations with existing publicly traded financial instruments; 5) sort the original registry; 6) provide financial instruments accounting transfers from one central depository member to another. " 25. To supplement the law with article 57.2 of the following: ' article 57.2. Central depository of business continuity (1) in order to ensure that this law, in article 92 functions, as well as the preservation of information, the central depository in central depository activity develop continuity plans. (2) If the existing central depository cannot fulfill this statutory function of insolvency, liquidation or other reasons, the central depository status is granted by tender for another company. Contest the Ministry of finance. (3) this law, article 92 in the second part of the functions provided for the transfer of a company for which the second part of this article in the order assigned to the central depository status, the existing central depository will continue their activities. This action funded by the budget of the Commission. (4) the Commission shall carry out the monitoring of the existing central depository as soon as it fully passed the obligations to its members and this law, article 92 in the second part of the Central depositary functions are transferred to the company that the second part of this article in the order given in the Latvian central depository status. " 26. Express article 93 the seventh subparagraph by the following: "(7) the procedures referred to in the third subparagraph of the second level of the financial instruments account holders to make booking of financial instruments and the settlement of transactions with the central depository posted financial instruments shall be established by the Commission." 27. in article 94(1): Add to second with 7.2 points as follows: ' 72), arrangements of financial instrument accounting transfer from one central depository Member; "; to make the fourth subparagraph by the following: "(4) the Central Depositary this provision rules and amendments after approval of the Governing Board of the central depository on its homepage on the internet. Central Depository rules and amendments to these rules shall enter into force the day after their insertion into the central depository's homepage on the internet if the rules provide another effective date. On approval of the rules, the Central Depository shall immediately inform the Commission thereof. "; Supplement to the eighth article as follows: "(8) Central Depository on its homepage on the internet at other procedures (such as regulations, procedures, description, instructions) that are governed by this law, article 92 in the second part the central depository functions." 28. Article 95: turn off in the third paragraph, the words "open a branch"; to make a fifth by the following: "(5) a foreign country registered company that provides investment services, could become a central depository participant only after it registered by the Commission in accordance with the procedure laid down in this Act, if the country of registration it is allowed to hold financial instruments." 29. Article 96: make the first part of paragraph 3 and 4 by the following: "3) on a regular basis, but no less than annually assessed financial instruments market the quality of the service provided and, where necessary, decides on its improvement; 4) provide central depository annual report committal central depository's homepage on the internet; " to supplement the first part with point 5 and 6 by the following: "(5)) provides information on the risk management methods and central depository risk management policy would be inserted into the central depository's homepage on the internet; 6) confirms this law referred to in article 94, the central depository rules and tariffs of services. "; turn off the third; replace the fourth subparagraph, the word "Council" with the words "Governing Board". 30. Supplement article 99 with 1.1 part as follows: "(11) the Central Depositary shall take the necessary measures to: 1) identify and manage potential conflicts of interest between central depository or its shareholders ' interest and the obligation to provide the accounting of financial instruments and the settlement of the smooth operation and prevent such conflicts of interest in the case of adverse effects on the operation of the central depository or the interests of its members, especially where such conflicts of interest can be detrimental to the central depository rights referred to in the third subparagraph of the central depository Member; 2) identified the risks to which it is exposed, and this risk is adequately managed; 3) ensure financial instruments accounting and settlement system operating properly. " 31. Article 101 be expressed by the following: ' article 101. Entitled to provide investment services and investment requirement (1) investment services in the Republic of Latvia has the right to provide only investment firms and credit institutions, as well as open investment funds of the company that manages the operation of regulatory legislation. Multilateral trading system is entitled to keep the market Organizer, which also received a license to organize the regulated market and the article 103.1 of this law in order to maintain the rights received by the multilateral trading system. (2) the law on credit institutions within the meaning of section F of the Republic of Latvia shall be considered registered banks and foreign bank branches, as well as credit institutions established in other Member States. (3) investment brokerage firms this law, within the meaning of section F of the Republic of Latvia shall be considered registered investment companies and foreign investment brokerage company branches, as well as other Member States registered investment companies. (31) For persons associated with the investment firm or credit institution within the meaning of section F shall be considered: 1) the investment firm or credit institution or of the Board Chairman, a member of the Council, attached to the agent or another person, which investment firms or credit institutions, when adopting relevant decisions it civil obligations; 2) associated company the agent of the Board or the President of the Council, the Member or other person associated with the agent's name, adopting relevant decisions it civil obligations; 3) investment firm, a credit institution or its associated agents, as well as other individual who is involved in the provision of investment services by the investment firm or a credit institution, and that the investment firm or a credit institution; 4) the natural person who is directly involved in the delivery of outsourcing investment firm, a credit institution or its associated agent, providing investment services. (4) On investment services and investment in additional services, which are provided in the Republic of Latvia shall be considered to be investment services and investment in additional services, if: 1) is a registered company in the Republic of Latvia; 2) is outside the Republic of Latvia registered company or natural person whose place of residence is in Latvia, but the investment services and investment of advertising or offering additional language or content shows that the corresponding service is offered in the Republic of Latvia; 3) offers virtual from the Republic of Latvia the assigned internet protocol address area, or if any of the service measures needed a score to settle with the person's location or address is in the Republic of Latvia. (5) investment firms and credit institutions that provide investment services shall comply with this Act, the rules and regulations of the Commission relating to them succeed administrative provisions, as well as internal policies and procedures. Investment firms and credit institutions that provide investment services with the central depository include financial instruments, also comply with the provisions of the central depository. Investment firms and credit institutions that provide investment services to the regulated market include financial instruments, also comply with the relevant provisions of the market Organizer. (6) the Commission shall establish and maintain an investment brokerage firm and the credit register, which the Republic of Latvia is entitled to provide investment services and investment in additional services. The registry specifies the investment services or additional services consisting of the provision of investment brokerage company has received a license or right to the provision of the law has won credit institution. Register by the Commission on its homepage on the internet. (7) in this law, the provisions of section F shall not apply to: 1) insurers and reinsurers; 2) within Group companies, who provide investment services only for other companies in this group; 3) persons who provide investment services only on an occasional basis of their professional activities, if that person's professional activity regulated by special legislation and a code of ethics that prohibits those not provide investment services; 4) commercial companies which provide investment services exclusively for their Board and Council members and employees and, if this company falls into the same group, the other in the same group as the company Board and Council members and employees; 5) registered in Latvia, which under the law are entitled to manage collective investment undertakings or companies registered in a Member State, which manages collective investment; 6) persons, which only executes transactions for own account, but which are not market-keepers or investment firms or credit institutions, which are considered as systematic internaliser; 7) members of the European system of central banks and other similar functions, sponsoring national authorities as well as public bodies charged with or intervening in the management of the public debt; 8) persons whose main business is not the bank of investment and the provision of financial services, but which make transactions with financial instruments for their own account or provide investment services as an additional service to their customers, a company operating within the group with this law, article 3, paragraph 4 of the second paragraph of the "g" referred to derivatives; 9) persons who, in the course of this law does not regulate professional activities, provide advice on investments in financial instruments and does not receive separate remuneration for it; 10) persons whose main business consists of dealing with goods or goods derived instruments on own account. This exception does not apply if the person who carried out transactions on own account in commodities or commodity derivative instruments include a company group is operating other investment services or financial services; 11) commercial companies, options, futures or other derivative markets or derivative markets the underlying the transactions for own account whose sole purpose is to limit the financial risk in the derivatives market, or which deal for the accounts of other members of those markets, which guarantees and liability for the following public contracts enforcement assume members of payment systems in the market. " 32. Article 102: make the seventh part of the introductory paragraph as follows: "(7) an investment firm providing the proper skill and care, and subject to this Act, the procedure laid down in section F1, have the right to delegate such outsourcing outsourcing:"; to make the ninth subparagraph by the following: "(9) if the investment brokerage company of this law article 3, paragraph 3 of the fourth part of the investment services referred to in that it provides for a private client, delegates registered foreign outsourcing provider, then in addition to the F1 title in it, ensure that the following requirements are met: 1) the outsourcing provider in his country of origin has received the license to provide such a service or have registered as its provider and is subject to the monitoring of the financial situation; 2) between the Commission and the supervisory authority of the service provider are appropriate information exchange concluded the agreement in accordance with article 145 of the Act. "; to supplement the article with the tenth, eleventh, twelfth, thirteenth and fourteenth part as follows: "(10) the Commission is empowered to authorize the investment brokerage firm to this law, article 3, paragraph 3 of the fourth part of the investment services referred to in that it provides for a private client, delegate, registered foreign outsourcing provider, without applying the ninth part of this article, these conditions have been met, the eleventh part of this article the said policies. (11) the Commission confirms the public their homepage on the internet policy for the investment brokerage firm law this law article 3, paragraph 3 of the fourth part of the investment services referred to in that it provides for a private client, delegate, registered foreign outsourcing provider. This policy contained at least the following information: 1) examples of cases in which the Commission allows the delegation of service outsourcing provider abroad, if not satisfied one or both parts of this article, the conditions referred to in the ninth; 2) justification why this part in the cases referred to in paragraph 1 shall be treated as investment brokerage company will ensure the provision of this law in the outsourcing requirements. (12) the investment company may not: 1) the delegate in accordance with the investment brokerage firm regulatory laws or statutes of the company certain investment administrative institutions of society; 2) licenses allow investment service or investment for the provision of additional services to fully outsource providers. (13) the Commission, on its home page on the internet in their list of foreign supervisory authorities, with which it has concluded agreements for the exchange of information. (14) investment brokerage company is entitled to provide investment services and investment in additional services with other investment firms or credit institutions mediation. " 33. Article 103: to supplement the first part of paragraph 4 by the following: "article 4) 133.2 referred to in the second subparagraph of the draft regulation, if the credit institution intends to maintain a multilateral trading system."; to supplement the article with a fifth by the following: "(5) a credit institution is entitled to provide investment services and investment in additional services with other investment firms or credit institutions." 34. To supplement the law with article 103.1 and 103.2 as follows: "article 103.1. The market organizer's right to provide the multilateral trading system-maintenance investment services (1) is registered in the Republic of Latvia the market organizer that a validly licensed to organization of the regulated market, multilateral trading system before start-up the following documents shall be submitted to the Commission: 1) 133.2 this law referred to in the second subparagraph of article draft regulation; 2 amendments to this law, 30) the first paragraph of article 3., 4., 5., 6., 7., 8., and the documents referred to in paragraph 9, if such amendments to be made in the context of the multilateral trade system maintenance. (2) is registered in the Republic of Latvia, the market organizer shall be entitled to initiate the functioning of the multilateral trading system, if within 30 days from the first paragraph of this article the date of submission of the documents has not received the Commission's objections. (3) registered in another Member State market organizer shall be entitled to keep the multilateral trading system in the Republic of Latvia, if the country of origin has won the right to make this investment. Established in another Member State of the market organizer shall be entitled to initiate the functioning of the multilateral trading system in the Republic of Latvia in accordance with this law, the provisions of article 133.5. Article 103.2. The provision of investment services by external agents (1) investment brokerage company and the credit institution has the right to use agents, linked to investment firms or credit institutions advertise and offer on behalf of the company provided investment services or receive orders from clients or potential clients, and forward these instructions to the investment firm or credit institution, based financial instruments and provide advice on such financial instruments and services offered by that investment firm or a credit institution. (2) The agent associated with a responsible person and staff directly involved in the first paragraph of this article with the provision of investment services related activities, can be positioned in the natural person: 1) which reached eighteen years of age; 2) which gained at least secondary education; 3) which acquired the necessary professional knowledge for the distributable offer investment services and financial instruments to be able to provide the first part of this article, certain associated agent tasks; 4) which has a flawless reputation and which is not subject to one of the third part of this article the said limits. (3) the agent associated with a responsible person and staff directly involved in the first paragraph of this article with the provision of investment services related activities cannot be a person: 1) is convicted of an intentional criminal offence; 2) is convicted of an intentional criminal offence, although released on parole due to the Statute of limitations, pardon or amnesty; 3) against which the proposed criminal case about intentional criminal offence is terminated due to a statute of limitations or amnesty; 4) which called the criminally liable for intentional criminal offence, but the criminal proceedings against them terminated on a reabilitējoš basis. (4) investment brokerage company and a credit institution provides the associated agents and their employees who are directly involved in the first paragraph of this article with the provision of investment services related activities, in order to give them the necessary knowledge on investment services that are distributed with an associated agent. (5) investment brokerage company and a credit institution shall be responsible for the associated agent and a staff who are directly involved in the first paragraph of this article with the provision of investment services related activities meet the second and third subparagraphs of the criteria set out in. (6) investment brokerage company and a credit institution keeps a register of agents associated with that record the following information: 1) tied agent or firm name (natural person), registration number, registered address, telephone or fax numbers and electronic mail address; 2) linked to the person responsible for the agent's name and surname; 3) the Member State in which the tied agent performs the first paragraph of this article with the provision of investment services. (7) the associated agents register is publicly available, it is public confidence, and any person has the right to become acquainted with it investment firm or credit institution home page on the internet. Investment brokerage company and the credit institution is responsible for the register of agents associated with recorded messages for accuracy and completeness. (8) agent is linked to the professional activities of customers to fully disclose information about their status and investment brokerage firm or credit institution which he represents. About agent linked to professional activities fully and without conditions is the responsibility of the investment firm or a credit institution, which is linked to the name of the agent is running. (9) investment brokerage company and a credit institution shall monitor the designated agents associated with complying with the requirements laid down in this law. (10) investment brokerage company and the credit institution is obliged, or at the initiative of the Commission immediately to revoke the registration of an associated agent if: 1) attached to the agent violated the requirements of this law; 2) attached to the agent violated criminal money laundering prevention laws and regulatory requirements; 3) tied agent established in a Member State, pursuant to the Treaty or the freedom to provide services, violated the principle of public interest of a Member State protective laws, and in other market financial instruments in the laws regulating the requirements; 4) linked to the agent asked to revoke the entry linked to the agent in the register; 5) is linked to the agent is eliminated. (11) if the administrative acts issued by the Commission for the entry of the cancellation of the associated agents register is appealed, it will not stop the execution of this Act. (12) Tied agent — — the legal entity has an obligation to itself or at the initiative of the Commission to immediately withdraw from the post linked to the person responsible for the agent or employee who is directly involved in the first paragraph of this article with the provision of investment services related activities, if: 1) it is found that it led to a situation that could endanger the agent associated with the interests of the client; 2) it does not meet the second part of this article the requirements or be the subject of any of the third part of this article restrictions; 3) it violated the criminal money-laundering prevention laws and regulatory requirements; 4) it violated the requirements of this law. (13) If the administrative act issued by the Commission for the twelfth part of this article, the persons referred to withdrawal from the posts is appealed, the appeal does not suspend the execution. " 35. Replace article 104 the first part of paragraph 2 and paragraph 2 of the second paragraph, the words "Commission" with the words "the provisions of the Commission's regulations." 36. Article 107: make the second paragraph, the introductory phrase of paragraph 3 as follows: "3) investment brokerage firm and qualitative investment services and investment for the provision of the necessary additional investment brokerage firm internal control policies and procedures of the system descriptions:"; Add to paragraph 3 of the second paragraph with "h" and "i" in subparagraph by the following: "(h)) company compliance policies and procedures, i) 133.2 this law referred to in the second subparagraph of article in the regulations, if the investment brokerage company plans to keep the multilateral trading system;" to complement the second part with the 5.2 and 5.3 points as follows: "52) conflicts of interest prevention policy; order execution policy 53); "; Add to the second part of paragraph 6 of section "c" by the following: "(c)) investment brokerage company of shareholders or members directly and indirectly acquired a significant amount of participation." 37. Put 108. the second paragraph of article 6 of the following paragraph: "6) it is not possible to ascertain the identity, reputation and stability of the financial situation of the investment brokerage company has a significant interest, or if the Commission finds that the impact of the persons who acquired a substantial holding in an investment brokerage firm, won't provide the financially stable, cautious and investment brokerage companies regulatory laws and appropriate management;". 38. Add to article 111 of the first part of paragraph 9 with the following: "9) is determined that the investment brokerage firm no longer meets the requirements set out in this Act a licence." 39. Article 112: express the third and fourth subparagraph by the following: "(3) registered in a Member State of the investment firm's obligation is 30 days in advance to inform the management authority of the State of origin and the Commission of any amendments to this article, the second part of the information referred to in paragraph 1, as well as of the intention to suspend the operation of the branch. (4) registered in a Member State of the investment firm shall be entitled to initiate the investment services and investment for the provision of additional services in the Republic of Latvia, without opening the branch, where the Commission has received a notice from this investment brokerage company the management authority of the country of origin, and this institution has sent confirmation of receipt of the notice. "; to supplement the article with a fifth by the following: "(5) where a registered in another Member State of the investment firm intends to use in the Republic of Latvia associated agents, the Commission should have the right to request that an investment brokerage firm's home country supervisory authority provide these agents identifying data." 40. Article 113 of the expression as follows: "article 113. The order in which the Republic of Latvia registered investment brokerage company launches investment services and investment for the provision of additional services in another Member State (1) in the Republic of Latvia registered investment company shall be entitled to give the other Member State only those investment services and investment for the provision of additional services, which it has received the licence Commission. (2) in the Republic of Latvia registered investment company shall be entitled to initiate the investment services and investment for the provision of additional services in other Member States by opening branches or subsidiaries, without opening the procedure laid down in this article. (3) in the Republic of Latvia registered investment brokerage company that wants to launch the investment services and investment for the provision of additional services in a Member State, the application shall be submitted to the Commission. In the application it States, investment services and investment in additional services, which are intended to provide, in the Member State in which the intended to provide the investment services and investment in additional services, as well as the way in which it is intended to provide (without opening a branch or branches opening or using the associated agents). If the investment firm intends to use glue to agents, it shall submit to the Commission, these agents identifying data. By the host Member State's supervisory authority, the Commission shall provide it with the associated agents identifiable data that the investment firm intends to use in that Member State. (4) investment brokerage company that wants to launch the investment services and investment for the provision of additional services in one of the Member States, opening the branch, the application indicates the address of the branch and this law, article 107 of the second paragraph of the information referred to in paragraph 1 for the Branch Manager. The application of investment brokerage company accompanied by documents that give a true and fair view of the planned activities of the branch, the nature of investment services and investment, according to the requirement of the branch structure and organization of work and to provide information on whether the Branch intends to use glue to the agents. (5) the application for investment services and investment started to provide additional services in other Member States, the Commission shall, within 30 days after all necessary in accordance with the requirements of the law prepared and presented and the receipt of documents on its decision, in writing, inform the management authority of the Member State concerned and the relevant investment brokerage company. The Commission shall take a decision not to allow the investment firm to launch the investment services and investment for the provision of additional services in a Member State of a branch, if you open an investment brokerage firm's administrative structure or the financial situation is not appropriate for the planned operation. (6) while this article the decision referred to in the fifth subparagraph, the Commission shall send the Member State concerned of the surveillance authority of the investment brokerage company submitted information, and information about the Republic of Latvia, the existing system of investor protection and the maximum amount of the refund. (7) investment brokerage company, in writing, inform the Commission and the management authority of the Member State concerned for amendment of this article, the third and fourth part of that information, as well as of the intention to suspend the operation of the branch not later than 30 days before the amendment or termination of the planned branch. (8) the Commission within 30 days from the date of receipt of documents of the seventh appearance of this article referred to documents and of their decision in writing inform the management authority of the Member State concerned and the investment brokerage firm. (9) investment brokerage company may initiate the investment services and investment for the provision of additional services, without having to open a branch in a Member State, the Commission, after the fifth paragraph of this article, the order has informed the management authority of the Member State concerned. (10) investment brokerage company may start a branch, where the Commission has received a management authority of the Member State concerned indicating that it is ready to launch the investment brokerage firm branch supervision, or the expiration of two months from the date on which the Commission sent to the supervisory body in the fifth subparagraph of this article, this statement. " 41. Add to article 118 of the fourth subparagraph by the following: "(4) a sworn auditor is obliged at the request of the Commission to provide it with any information about the checks and findings." 42. Article 119 off the fourth part of the second sentence, the words "(if any)". 43.120. in the first paragraph: make paragraph 1 by the following: "1) 50 000 euro in lats equivalent at the rate of the Bank of Latvia, where the investment firm wishes to provide any of this law, article 3 of the fourth part 1., 2., 3., 4., or referred to in point 8 of the investment services, except where the investment firm wishes to provide only this law, article 3 of the fourth part 1 or 8, investment services referred to in paragraph 1;" Replace paragraph 3 numbers and the word "5. or 6." with the figures and word "5, 6 or 9.". 44. Article 124 of the expression by the following: ' article 124. General requirements (1) investment brokerage company in accordance with its license issued for the provision of investment services activities during this execution of the license and comply with the following requirements: 1) ensure that its capital corresponds to this law and the regulations of the Commission rules, as well as to meet other investment brokerage firm regulatory requirements; 2) ensure that its Executive Board and Council (if one exists) members are persons who have impeccable reputation; 3) ensure that its Chairman of the Board and at least one Board member is a person who is competent in matters of investment; 4) provides internal oversight activities, including audits and determines the order in which the investment company's employees can receive investment services in investment brokerage company, as well as in other investment firms or credit institutions; 5) provide financial instruments to the execution of transactions in financial instruments, customer account and the transaction secret according to law; 6) in accordance with the requirements of the law, the provisions of Commission regulations and internal rules for data processing, storage and transmission security measures; 7) provides the client and the investment firm of financial instruments continued holding of divorce; 8) provides the client and the investment of public funds in separate holding permanent; 9) provide financial instruments transactions justification document storage for 10 years, as well as other laws and regulations of the Commission requirements relating to the justification of document filling and storage; 10) provides the other with Chapter XII of this law the requirements of the related documents are stored for 10 years. The list of documents to be stored by the Commission; 11) provides its operational nature, suitable to the size and complexity of a comprehensive and effective internal control system design and operation, covering the following key elements: (a) investment firms) and operational risks the appropriate organisational structure with well-defined, transparent and consistent role, powers and responsibilities of business and control between the investment brokerage company departments and the responsible employees, b) investment brokerage company for the operation of the existing and potential risk identification , management, monitoring and reporting system, c) internal control procedures; 12) provides investment services and investment requirement of continuous and systematic provision of using the systems, tools and procedures; 13) provide all the necessary administrative and organisational measures to prevent this Act 127. conflicts of interest referred to in article the adverse effects on the interests of their clients. (2) a credit institution, which provides investment services or investment, implementation of additional services and comply with the following requirements: 1) creates a the Department of investment services and investment for the provision of additional services and support this Department management, internal audit and oversight, including determines the order in which the Department employees may receive investment services in this unit, as well as another credit institution or investment firm; 2) provides to the Department a leader is a person who is competent in matters of investment and has impeccable reputation; 3) provide with the financial instruments and transactions to customer accounts and the financial instruments business secrets pursuant to law; 4) in accordance with the requirements of the law, the provisions of Commission regulations and internal rules for data processing, storage and transmission security measures; 5) provides the client and the credit institution's own financial instruments continued holding of divorce; 6) provide financial instruments transactions justification document storage for 10 years, as well as other laws and regulations of the Commission requirements relating to the justification of document filling and storage; 7) provides the other with Chapter XII of this law the requirements of the related documents are stored for 10 years. The list of documents to be stored by the Commission; 8) provides investment services and investment requirement of continuous and systematic provision of using the systems, tools and procedures; 9) take all the necessary administrative and organisational measures to prevent this Act 127. conflicts of interest referred to in article the adverse effects on the interests of their clients. (3) investment brokerage company and a credit institution which is the organizer of the regulated market, dealing a regulated market shall be entitled not to apply this law, 126, 126.1, 126.2, 128.1 and 128.2, 128, the requirements referred to in article 128.3 in relation to other members of the market Organizer. (4) investment brokerage company and a credit institution which is a member of the multilateral trading system, dealing the multilateral trading system, is entitled not to apply this law, 126, 126.1, 126.2, 128.1 and 128.2, 128, the requirements referred to in article 128.3 in relation to other members of the system. " 45. To supplement the law with article 124.1 and 124.2 as follows: "article 124.1. Client status (1) the Person to whom the investment brokerage company and a credit institution provides investment services and investment, additional services can be a Professional client, the client or authorised private business partner status. (2) Professional clients in relation to all investment services and instruments is: 1) in the Republic of Latvia or any other country for financial market transactions licenced and supervised institutions: a), (b) the credit institution) investment brokerage company, c) other authorised or regulated financial institutions, (d)), investment funds and investment management companies, insurers, e) f) pension funds, g), (h) the goods dealer) companies to options, futures or derivative financial instruments derivative instruments markets or of the underlying markets, make transactions for own account the sole purpose of which is to limit the financial risk of the financial derivatives markets or which deal for the other market participants or make prices for them and which guarantees members of payment systems in the market, if the responsibility for such company signed agreement enforcement assume members of payment systems in the market, i) other companies whose main activity is to invest in financial instruments and investments carried out such a large scale; 2) commercial companies that meet two of the following three requirements: (a)) equity — not less than 2 million euro in lats equivalent at the rate of the Bank of Latvia, b) net turnover not less than 40 million euros equivalent in lats at the rate of the Bank of Latvia, c) balance value, not less than 20 million euro in lats equivalent at the rate of the Bank of Latvia; 3) and local authorities, public bodies that manage public debt, central banks, the World Bank, the International Monetary Fund, the European Central bank and other international financial institutions; 4) other companies whose main activity is to invest in financial instruments and investments carried out such a large scale; 5) person in another State recognized professional client pursuant to the procedure equivalent to that laid down in this article. (3) an investment firm or a credit institution before the investment services and investment started to provide additional services will inform the customer of its status. (4) the customer has the right to demand that an investment brokerage firm or a credit institution gave it the status of other customers. Private customers can obtain professional status of this article to the customer on the fifth, sixth and seventh part. Professional client can get private client status this article is part of the ninth and tenth. Investment brokerage company and the credit institution shall inform the customer about these rights according to this law, the procedure laid down in article 126.1. (5) an investment firm or a credit institution, which provides investment services and investment in additional services shall have the right to declare for the professional customer, any person not mentioned in the second paragraph of this article, but has made a request that the knowledge and experience of investment brokerage company and the credit institution has evaluated and which meet at least two of the following criteria: the person has made a significant) amount of business on the relevant market — at least 10 transactions per quarter the previous four quarters; 2) personal financial instrument portfolio, which comprises financial assets and financial instruments, exceeds 500 000 euros equivalent in lats at the rate of the Bank of Latvia; 3) has at least one year of experience in the financial sector, which requires knowledge of the transactions and the services that the person intends to take or receive as a Professional client. (6) an investment firm or a credit institution, before to recognize in the fifth subparagraph of this article, the person to be a Professional client, assess its expertise, experience and knowledge to gain assurances that, taking into account the nature of the transaction or services, the customer can independently take investment decisions and aware of the related risks. (7) the Professional status of the client in the fifth subparagraph of this article, such person may assign in whole or with respect to certain types of investment services, the nature of the transaction or any transaction or product. A person who wishes to be recognised as a professional customer, shall be provided to the investment firm or credit institution application, showing an investment service, or type of product for which it wishes to receive the professional status of the client. Investment firm or a credit institution before the professional status of the customer's written notice to the person it's about investor protection right, which it may lose professional status and personal client sign a certification that it has received the following alert and aware of the consequences of the loss of such rights. On the professional status is entered into a written agreement. (8) a Person recognized as a Professional client, this article is the fifth, sixth and seventh in the order listed, give the investment firm or credit institution for information about its operation to the share of changes that may affect the person's compliance with the professional status of the customer requirements. Investment firm or a credit institution, which receives the information that the client no longer meets the professional requirements of the customer, shall decide on the revocation of that status and inform in writing the person concerned. (9) a Professional client private client status can be granted to all the services as a whole or to the individual investment services, business or product lines. Professional client that wants to give him a private client status, submit to the investment firm or credit institution application, showing an investment service, or type of product in respect of which he wishes to be the customer's private status. (10) To the professional private customer customer status, investment firm or a credit institution and the person who is considered to be a Professional client, entered into a written agreement. This agreement provides the investment services, business or product lines, which are suitable for private customers. (11) the investment firm or a credit institution, which provides investment and investment in additional services, develop and approve the internal policies and procedures that ensure compliance with the requirements of this article in relation to customer status. 124.2 article. Eligible counterparties (1) On eligible counterparties may be investment brokerage company, credit institution, insurance company, investment management companies, pension funds and their management companies, other financial institutions, licensed and operating in accordance with the financial services regulatory legislation of a Member State, article 101 of this law the seventh part 10 and paragraph 11. commercial companies, Governments and other public bodies that manage public debt, central banks and supranational organisations. (2) investment brokerage company and a credit institution transactions carried out by eligible counterparties by providing this law, article 3 of the fourth part 1, 2 or 6 above investment services, has the right not to apply this law, 126, 126.1, 126.2, 128.1 and 128.2, 128, the requirements laid down in article 128.3. (3) investment brokerage company and the credit institution before the investment services and investment started to provide additional services shall inform the first paragraph of this article than those applied by the company in the right business partner status. (4) in the first paragraph, such persons have the right to this law, in accordance with the procedure laid down in article 124.1 require the investment firm or a credit institution granting them professional or private customer status. " 46. Supplement article 125 4.1, 4.2 and 4.3 of the part as follows: "(5) the financial instruments belonging to the investment firm or credit institution customers may not be supported by the investment firm or a credit institution on the same invoice or on another customer's account, including the securities financing transactions. This requirement shall not apply where the customer has given prior consent to such transactions and investment firm or a credit institution transactions carried out in accordance with the customer's specific conditions set out. Retail client agreement shall be evidenced by the signature, or the use of equivalent method signatures. (42) the financial instruments belonging to the investment firm or credit institution customers and which are listed in the nominal account that is open to third parties and which are kept together for more client financial instruments may not be used in securities financing transactions or other transactions performed by the investment firm or a credit institution on the same invoice, except that the addition of this article 4.1 part is followed by one of the following conditions : 1) all customers who owned financial instruments are held nominal account, have given prior consent to such transactions in accordance with article 4.1 of this part; 2) investment firm or credit institution is in possession or control of a system which ensures that only the prior consent given for the financial instruments belonging to clients are used in securities financing transactions or other transactions by the investment firm or a credit institution on the same invoice. (43) the investment brokerage company and a credit institution this article 4.2 in the case referred to in the financial instruments, which provide information about clients, in accordance with the specific conditions of which the transaction is conducted and the number of financial instruments in order to ensure the proper income distribution. " 47. Article 126 of the expression by the following: ' article 126. Agreement on investment services and investment requirement (1) before the provision of investment services and investment to provide additional services start up investment brokerage company and a credit institution enters into a written agreement with the customer on investment services and investment for the provision of additional services. The contract shall specify: 1) investment firms or credit institutions customer identification data and the client's address; If you open a nominal account, — nominal account-identification data and address; 2) order in which a client investment firm or credit institution shall order a transaction with financial instruments, and customer identification procedures; 3) order in which, in the light of this law article 126.1, happens to financial instrument transactions related to the exchange of information between the investment firm or credit institution and the customer (for example, the transfer and receipt of information, resources, deadlines); 4) with financial instruments related developments (for example, the general meeting, dividend and interest payment, debt financial instruments, the nominal value of the financial instruments Exchange, the issue of financial instruments, financial instruments Division of emission, emission right); 5) the investment firm or credit institution and the customer's billing procedures for transactions in financial instruments; 6) order in which will inform the customer of the investment firm or credit institution services tariff; 7) mutual compensation arrangements; 8) mutual disputes; 9 amendment procedures of the agreement). (2) the agreement may be close in electronic form only if the investment company and the credit institution before the customer has entered into a written contract, which provides for the investment brokerage firm and the credit institution the right to mutual agreements with the customer to close in electronic form and which is intended for the customer identification procedure. (3) prior to the conclusion of an agreement on investment services and the provision of additional investment, investment firms and credit institutions are obliged to inform the customer about the order in which this contract complaints and disputes are dealt with out-of-court settlement. " 48. To supplement the law with 126.1 and 126.2 article as follows: "article 126.1. With investment services in exchange of related information (1) the investment firm or a credit institution customer information shall be in paper form or electronically. Choosing the type of provision of information, the customer shall be able to store information addressed personally to him and unchanged to reproduce a period which is reasonably necessary, having regard to the information content. (2) an investment firm or a credit institution provides to the client the right of option in relation to the exchange of information. The exchange of information, the manner in which the investment and brokerage firm, a credit institution shall provide information to the customer, subject to an agreement for the provision of investment services. (3) customer information, investment firm or a credit institution provided electronically, if: 1) the provision of information in electronic form is appropriate to the context in which happens or will happen in the transactions between investment firms or credit institutions and customers; 2) client, which will provide information, you have the option of choosing whether he will get information in paper form or electronic form, and a customer has specifically indicated that wishes to receive information in this way. (4) an investment firm or a credit institution has the right to provide the customer information that is not addressed to him personally, via the internet, if the following conditions are met: 1) the customer is confirmed that he has access to the internet; 2) client is especially pointed out that the agreement with the information this way; 3) client is notified electronically of the address of the Web site and the site's home page, where the information is available; 4) information is updated in a timely manner; 5) information in this internet site is permanently available for as long as is reasonably necessary for the customer to be able to check it. 126.2 article. Investment services and investment suitability and compliance with the requirement of the customer's interests (1) to determine the appropriateness of investment services and compliance with the customer's interest, investment firm or a credit institution from a customer or potential customer asks details of his: 1) experience and knowledge relating to the provision of investment services to the transactions concluded in the course of, the goals he wants to achieve with the relevant transactions and financial position, if the investment firm or a credit institution provides advice on investments in financial instruments or financial instruments in the management of the individual in accordance with the mandate of investors; 2) experience and knowledge relating to the provision of investment services in the course of the transactions, if the investment firm or a credit institution providing investment services other than those referred to in paragraph 1 of this part. (2) information obtained in accordance with the first subparagraph of paragraph 1, an investment brokerage company and a credit institution to be used, with due regard to the nature of the service offered and the extent that the proposed deal, giving advice on investments in financial instruments, or complete the transaction through the financial instrument for the management of the individual in accordance with the mandate of investors: 1) corresponds to the value in the customer's investment objectives; 2) is that the client is able financially to take any investment risks, related to his investment objectives; 3) is that the client has the necessary experience and knowledge to understand with business or with his portfolio management risks. (3) information obtained in accordance with the first subparagraph of paragraph 2, an investment brokerage company and a credit institution uses to determine whether the client has the necessary knowledge to understand the service offered or type of product-related risks. (4) information on the client's or potential client's knowledge and experience in the field of investment: 1) include information on the service, and the types of financial instruments, customer is familiar with; 2) customer transactions in financial instruments, the nature, scope, frequency and period in which they are carried out; 3) customer or potential customer education, and profession or relevant former profession. (5) require that the information referred to in the fourth subparagraph, the investment brokerage firm and the credit institution takes into account factors such as customer status (private clients, Professional client), to the nature and extent of the service, product or transaction envisaged by way of service complexity and associated risks. (6) information on the client's or potential client's investment objectives, if necessary, contain information on the period within which the client wants to hold the investment, his preferences regarding risk taking, risk profile and investment purposes. (7) information on the client's or potential client's financial position, if necessary, contain information on his regular sources of income and the extent of his assets, including liquid assets, investments and real estate, and his regular financial commitments. (8) investment brokerage company and the credit institution has the right to invite the client not to provide the information referred to in this article. (9) If, in giving advice on investments in financial instruments or financial instruments in the management of the individual in accordance with the mandate of the investors, the investment brokerage firm or credit institution has acquired the first part of this article, the information referred to in paragraph 1, it shall not be entitled to recommend to the client or potential client the investment services or financial instruments. (10) if the investment firm or a credit institution on the basis of the information obtained in accordance with the first subparagraph of paragraph 2, it is considered that the product or service is suitable for the customer, it warns the client. If the customer investment brokerage company and the credit institution refuses to give a first part of this article referred to in paragraph 2, the news or if the investment firm or credit institution is the information that this information is incomplete or contains recent changes, investment firm or a credit institution warns customers or potential customers that it is not possible to assess the public service or for the suitability of the product for the customer. If the investment firm or credit institution is a client, but the client has not warned provided additional information, it is not responsible for the consequences caused by the customer's refusal to provide information, incomplete information or reporting of changes in the information provided above. (11) the tenth part of this article, these alerts can be expressed in a standardized form. (12) if the investment firm or a credit institution provides the customer only this law, article 3 of the fourth part 1 or 2 of paragraph investment services, it does not require the customer to the first part of this article, the information referred to in paragraph 2, if all the following conditions are met: 1) service applies to shares that are listed on the regulated market of a Member State or in a foreign market that complies with this Act (D) the requirements of chapter I of title , money market instruments, bonds or other forms of securitised debt (excluding those bonds or securitised debt that includes derivatives), units of investment funds and other simple financial instruments; 2) service is provided by the customer or potential customer initiatives; 3) client or potential client has been clearly informed that this service investment brokerage firm does not evaluate the investment service provided or the suitability of the instrument to the customer and that customer does not benefit therefore adequate protection; 4) investment brokerage company and a credit institution comply with this law, in article 127 and 127.1. requirements to prevent conflicts of interest. (13) other simple financial instruments twelfth part of this article paragraph 1 is set out in the financial instruments that are not mentioned in this law article 1 paragraph 32 of "c" or not in derivatives and which meet the following conditions: 1) such financial instruments may be put into circulation, often bought out or otherwise sell for market participants publicly available prices are either market prices or prices , which is available from the issuer of the independent evaluation system; 2) it does not cover any existing customer or potential liability that exceeds the cost of acquiring the instrument; 3) information on the nature of the financial instruments available to the public, it is easy to understand and allows the average retail client to make an informed decision about the transaction with this instrument. (14) this article does not apply to professional customers, the Professional client is considered to have the necessary experience and knowledge in connection with products and services for which the customer is classified as a Professional client, and for one that is able to financially take the risk for any loss, which may contribute to create. (15) the requirements of this article shall not apply if the investment services are offered to other financial products which are subject to European Union regulatory requirements with respect to credit or consumer credit and subject to other client risk assessment and information provision requirements. " 49. Article 127 of the expression as follows: "article 127. Conflict of interest (1) investment brokerage company and a credit institution shall take all necessary and possible measures to identify and prevent conflicts of interest, investment services and investment during the provision of additional services may arise between investment brokerage company or a credit institution, including their staff, tied agents, persons directly or indirectly controlled by the investment firm or credit institution authorised and customers, as well as among its customers. (2) to identify the types of conflicts of interest that can arise when providing investment services and investment in additional services, investment brokerage company and take into account the situation of the credit institution, an investment brokerage firm or a credit institution, a related article 101 of this law referred to in paragraph 3.1, the person or persons who are directly or indirectly controlled by investment firm or credit institution authorised: 1) could make a profit or avoid a financial loss to the customer's account; 2) is interested in the service provided to the customer or on the customer's behalf as a result of the transaction, which does not comply with the client's interests; 3) is interested to work in favor of another customer or customer group. 4) provides the same professional activities carried out by the customer; 5) receives or will receive for services rendered to the customer from another person's money, in the form of goods or services, other than the standard fee for this service. (3) in order to ensure that the first part of this article the requirements, investment brokerage company and a credit institution shall develop, approve and implement its size, organization, professional type, the size and complexity of the relevant conflicts of interest prevention policies. If the investment brokerage company and a credit institution comprises a group of companies, the prevention of conflicts of interest policy also provides for the prevention of conflicts of interest that may arise in other companies in the group action or structure. (4) investment brokerage company and a credit institution conflicts of interest prevention policy: 1) identifies conditions that cause or may cause conflicts of interest that create significant hazards or injury to one or more customer interest, with reference to the specific investment services and additional types of investments by investment brokerage company and a credit institution or a third party on its behalf; 2) determine the necessary procedures and measures for the prevention of conflicts of interest. (5) the procedure for prevention of conflicts of interest and action, investment brokerage company and a credit institution ensure proportionality with the investment firm or credit institution, or group in which it covers, the size and professional activities, as well as the significance of client interests. (6) the performance of the fourth paragraph of this article of the type referred to in paragraph 2, an investment brokerage company and a credit institution according to its structure and provide the investment services provided: 1) effective procedures to prevent or control the exchange of information between this law, article 101 of the persons referred to in paragraph 3.1, of which there is a risk of a conflict of interest, if such exchange of information can cause harm to one or more client interests; 2) separate monitoring this law, article 101 of the persons referred to in paragraph 3.1, whose main duties are to carry out activities on behalf of clients or customers or the provision of services which represent other interests, including the investment firm or credit institution which can come into conflict with the interests of the client; 3) to prevent the direct link between remuneration or income, what derives this law, article 101 of the person referred to in paragraph 3.1, which is associated with a different provision of investment services, if a conflict of interest may arise in relation to the provision of investment services process operations; 4) measures which prevent or limit the third parties ' improper influence on investment service or investment in the course of the provision of additional services; 5) measures to prevent or control the article 3.1 paragraph 101 that person at the same time or sequential involvement of different investment service or investment in the provision of additional services, if such involvement may impair the proper management of conflicts of interest; 6) additional procedures and other measures, if necessary, to prevent the emergence of conflicts of interest in article 101 of this law of the persons referred to in paragraph 3.1. (7) If the organizational or administrative measures taken by the investment firm and the credit institution in accordance with the requirements established by the management of conflicts of interest are not sufficient to ensure with reasonable confidence, that risks of damage to client interests will be prevented, the investment firm or a credit institution clearly disclose conflicts of interest to the customer or to the nature of sources, taking into account article 126.1 of the Act's requirements. (8) investment brokerage company and a credit institution stored and constantly updated information on the investment services and investment in additional services, which are delivered by the company or which is provided on its behalf and which have caused or may cause conflicts of interest, which is vulnerable to one or more of the clients ' interests. (9) investment brokerage company and a credit institution shall establish and implement a system to ensure that this law, in article 127.1 requirements relating to personal transactions. (10) investment brokerage company and a credit institution, which distributes investment research, to the prevention of conflicts of interest in addition to the requirements laid down in this article is to take this law the measures laid down in article 127.2. " 50. To supplement the law with 127.1 and article 127.2 as follows: "article 127.1. Personal business restrictions (1) personal business is trading with financial instruments by article 101 of this law referred to in paragraph 3.1, with the investment firm or credit institution authorised in the related person or made in that person's benefit, if at least one of the following criteria: 1) transaction is not satisfied that the person's job or profession; 2) transaction executed on that person; the transaction executed on 3) that person's spouse, children, troubled (spouse who is not the child of that person) or other relative who with this law, article 101 of the persons referred to in paragraph 3.1 have been jointly holding at least one year before the transaction; 4) transaction made to another person's account, which by this law in part 3.1 of article 101 that person is linked in such a way that the last is the direct or indirect pecuniary interest in the outcome of the transaction, other than charges for the transaction. (2) Article 101 of this law the persons referred to in paragraph 3.1 is prohibited from: 1) make personal trade based on inside information that the person is available, making the obligations of work or professional investment firm or the credit institution to conduct personal business with or without disclosing the secret under the transaction containing the information, or make a personal transaction, which is in contradiction with this law firm and the investment requirements to the credit institution; 2) suggest a third person to carry out such transactions with financial instruments, which the person who recommended the deal, would qualify as a personal deal, subject to this part, paragraph 1 article 127.2 of the third paragraph and in paragraph 1 of this law in the second paragraph of article 128.1 those limitations except when a deal is proposed, through work or professional obligations; 3) to disclose third party information or to comment, if the person who discovered the information, know or should know that the disclosure resulted in a third person will or might take or recommend another person to carry out such transactions with financial instruments, which the person who disclosed the information, would qualify as a personal deal, subject to this part, paragraph 1 article 127.2 of the third paragraph and in paragraph 1 of this law article 128.1 in the second part of the above limitation except when the information is disclosed or views are expressed through work or professional duties. (3) Article 101 of this law the persons referred to in section 3.1 shall inform the investment firm and the personal credit for their transactions. (4) investment brokerage company and the credit institution has the right to determine that 101 of this Act referred to in article 3.1 person personal transaction requires the investment firm or credit institution authorised. (5) investment brokerage company and a credit institution ensure that article 101 of this law the persons referred to in paragraph 3.1 is known to the obligation laid down in this article is to inform the investment community and the credit for their personal transactions and restrictions for personal business. (6) investment brokerage company and a credit institution shall monitor, as the related article 101 of this law the persons referred to in paragraph 3.1, follow the requirements laid down in this article. (7) investment brokerage company and a credit institution shall establish and maintain a registry in which stores information on article 101 of this law of the persons referred to in paragraph 3.1, the transactions carried out on the basis of the person concerned, or in the course of monitoring the open information. If the investment brokerage company and a credit institution shall transfer the outsourcing provider of investment services or its essential part, outsourcing contract subject to this law, article 101 of the persons referred to in paragraph 3.1, the personal transaction registry maintenance procedures and arrangements for the investment firm or a credit institution may receive information from the outsourcing provider for that person to person transactions carried out. (8) if the investment firm or a credit institution has determined that personal business requires investment firms or credit institutions authorised, it stores the information about the personal transactions of the licences issued or refused to issue the permit. (9) the provisions of this article shall not apply if: 1) personal business is conducted in the individual financial instruments within the Administration and in the context of the transaction have not had prior communications between portfolio managers and article 101 of this law shall be 3.1 daļāminēt person or another person on whose behalf the transaction is conducted; 2) personal transactions were made at the open investment fund, investment certificates and article 101 of this law referred to in paragraph 3.1, the person or the person on whose behalf the transaction is conducted, is not involved in the administration of the Fund. Article 127.2. Prevention of conflicts of interest for people who develop investment research (1) contribution to the study of the meaning of this article is research or other information that directly or indirectly recommends or suggests investment strategies in relation to one or more financial instruments or issuers of financial instruments, including any opinion on such instruments present or future value or price of the future, and which is intended for distribution channels or for the public and in respect of which the following conditions are met: 1) it is marked as investment research or otherwise presented as objective or independent explanation of the issues included in the study; 2 it is not a customer provided) suggestion, advising him on investments in financial instruments. (2) investment brokerage company and a credit institution who develop investment research that is intended to spread the company's customers or the general public on its own responsibility, or for the commercial group, which includes investment firm or a credit institution or other company, or arrange for such development, the study provides all of article 127 of this law in the sixth part of the implementation of the measures provided for in regard to financial analysts who are involved in the preparation of investment research and article 101 of this law the persons referred to in paragraph 3.1, which liability or professional interests may come into conflict with the interests of the persons to whom the investment research is disseminated. (3) investment brokerage company and a credit institution who develop investment research, ensure that: 1) financial analyst and other article 101 of this law the persons referred to in paragraph 3.1 is prohibited to conduct personal transactions or transactions to another person's account, including the investment firm or credit institution an invoice, with the financial instruments which are designed to study the investment, or with those financial instruments financial instruments If the financial analyst or article 101 of this law the persons referred to in paragraph 3.1 on investment research content is information that is not available to the public or customers or on which you can draw conclusions from the information available to the public, as long as the beneficiaries of the investment research have gained the opportunity to acquaint themselves with the contents of the study and take action based on this research. This point requirement does not apply to the case where a financial analyst or any other article of this law 101. persons referred to in paragraph 3.1, the transactions as a market support in the performance of their duties in good faith and in accordance with established procedure, as well as run after client's order submitted by the initiative; In addition to this article 2) 1. the requirements set out in paragraph financial analyst and other article 101 of this law the persons referred to in paragraph 3.1, which is involved in the development of the study of investment, it is prohibited to conduct personal transactions with financial instruments, which are designed to contribute to research, or with those financial instruments financial instruments, if the transaction is contrary to the expressed investment recommendations in the study, except where such a transaction is approved by the Department which made the investment brokerage firms and credit compliance control function; 3) it is prohibited for an investment brokerage company and a credit institution, a financial analyst and another article 101 of this law in part 3.1 that person who is involved in the development of investment research, accept property or other benefits from persons who could be interested in the content of the investment research; 4) it is prohibited for an investment brokerage company and a credit institution, a financial analyst and another article 101 of this law in part 3.1 that person who is involved in the development of investment research, to undertake to develop a beneficial investment research to the issuer; 5) it is prohibited to the issuer and other article 101 of this law the persons referred to in paragraph 3.1, before the publication of the study to verify the financial analyst's final contribution to the research project, which includes a recommendation or price forecasts, except when you verify its compliance with the investment firm or credit institution of legal commitments. (4) in the third paragraph of this article, the provisions do not apply to investment firms and credit institutions, which distributes third-party investment in research if: 1) a legal person who developed the investment research and investment firm or a credit institution does not belong to the same group of companies; 2) investment brokerage firm or a credit institution, disseminating investment research, without amending it. 3) investment brokerage firm or a credit institution does not indicate yourself as the developer of the study; 4) the person who developed the investment research, follow the requirements of this Act or equivalent requirements for the prevention of conflicts of interest. (5) If the information directly or indirectly recommends or suggests investment strategies in relation to one or more financial instruments or issuers of financial instruments, including any opinion on such instruments present or future value or price of the future, intended for distribution channels or for the public, but does not meet the conditions referred to in the first subparagraph, it shall be considered a marketing statement. The requirements laid down in this article is not suitable for marketing communication. (6) the dissemination to the information referred to in the fifth subparagraph, investment firm or a credit institution expressed as a marketing message and indicates that this information is not prepared, on the basis of the requirements of the laws that promote the independence of investment research, and is not subject to the ban to do business before investing in a research of distribution. " 51. Article 128 of the expression as follows: "article 128. Obligations to customers (1) investment brokerage company and the credit institution providing investment services, is obliged to act as a good and thorough master and provide services with due professionalism and diligence in the best interests of the client. (2) contracts concluded with the customer for the provision of investment services and investment for the provision of additional services investment firm or a credit institution must not include provisions which would conflict with the first part of this article or concealed manner include the effect that would have in any way against the client. (3) investment brokerage company and a credit institution shall ensure that only those persons whose investment firm or a credit institution authorized to carry out such activity are entitled to make decisions about individual of client financial instruments management and give customers investment advice. (4) in the third paragraph of this article, the specific tasks of the investment firm or a credit institution may authorize only individuals who have the appropriate education and experience and who are competent in the field of investment services. (5) investment brokerage company and a credit institution ensure that clients or potential clients in targeted information, including marketing communications, is a genuine, clear and not misleading. Marketing communications are clearly identifiable. (6) investment brokerage company and the credit institution before the conclusion of the contract or the customer may disclose customer information about: 1) investment brokerage firm or a credit institution and its subsequent to the contribution of investment services and additional services; 2) financial instruments and proposed investment strategies, investment-relevant financial instruments or with a specific investment strategy seeks to smother risks; 3) place of execution of transactions; 4) cost of services provided and related costs. (7) in the sixth paragraph of this article, the information referred to in the investment brokerage company and a credit institution finds it to clients or potential clients can properly understand the offered investment services, additional services and investment in particular types of financial instruments and thus make decisions on investments. This information can be provided in a standardised form. Investment brokerage company and a credit institution continues to inform the customer the specific request without it throughout the course of the provision of investment services, where the relevant information is changed or updated. (8) the requirements for the content of information that investment in the course of providing the service investment brokerage company and a credit institution provides to the customer on investment services, financial instruments, the cost of the service and transactions made by the Commission. (9) the customer's order must not be impeded, and executed immediately (except for the cases provided by law), fairly and in accordance with customer's instructions about the order. Executing client orders, investment firms and credit institutions shall take into account article 128.1 of the Act. (10) investment brokerage company and a credit institution using the customer's order, in accordance with the requirements of article 128.2 of the Act shall take all measures necessary in order to achieve the best results possible. (11) investment brokerage company and a credit institution in accordance with this law, the requirements of article 126.1 and regulations of the Commission, the rules provide the client with information about the enforcement of his orders and the provision of investment services, including information about costs associated with execution of the mystery or the provision of investment services. (12) the investment brokerage company and a credit institution is prohibited in relation to investment services and investment provision of additional services to make or receive a payment or to provide or accept other benefits except: 1) payment by the customer or the person acting on behalf of the client, or other benefits, provided to or receives the client or person acting on behalf of the client; 2) duty paid or provided to or by a third party or person acting on behalf of third parties, or other type of benefits provided or received by a third party or person acting on behalf of a third party, if: (a) a payment or benefit in existence), character and amount or, if the amount cannot be determined, the method of calculating this amount is clearly set out in the customer complete, accurate, and understandable manner before the investment service or the provision of additional services. This information may be provided to the customer in the form of a summary, but the customer is entitled to receive detailed information, (b)) the payment or other benefit purposes is to increase the supply to the customer service quality and it does not affect the obligations of the company to achieve the best results possible for the customer; 3) payments, which provides investment services or investment, or the provision of additional services are required for the provision of those services (for example, the holding of financial instruments, costs, billing and marketing site fees, administrative fees), or legal fees for payments by their nature do not come into conflict with public duty to act honestly, fairly and professionally in accordance with the interests of their clients. (13) the customer has the right investment brokerage company and the credit institution submit to the provision of investment services-related complaints. Investment brokerage company and a credit institution establish, implement and comply with the effective procedures in accordance with which you registered, and private clients and potential retail client complaints and is recorded information about the measures taken in connection with these complaints. (14) customers that are to be considered as consumers, consumer protection law, are entitled to submit consumer complaints about the center of this Act and other consumer protection legislation, if it is related to the provision of investment services. (15) the Commission gives customers opinions on complaints about this law and other legislative requirements violations, if it is related to the provision of investment services. (16) if the client suffers losses investment firms or credit institutions provided the wrong information or so that the investment firm or a credit institution has not complied with the requirements of this article, the customer has the right to seek damages in the common law. " 52. To supplement the law with article 128.1 and 128.2 128.3, as follows: "article 128.1. Customer order execution rules (1) investment brokerage company and a credit institution that received a license for the investor's expense, shall take the necessary measures and establish procedures for executing client orders, ensure the following requirements are met: 1) orders executed on behalf of the client, are promptly and accurately recorded; 2) customer order are executed immediately in the order of their submission unless the nature of the order or the existing market conditions do not make it impossible this way or the interests of the client does not require any other action; 3) private client is informed in good time of any major difficulties as regards the proper execution of the order; 4) received as a result of transactions in financial instruments or funds will be immediately credited to the customer's financial instruments account and cash account. (2) investment brokerage company and a credit institution, as well as related persons referred to in article 101 of this law in part 3.1 shall not misuse the information in their possession about outstanding client task. (3) if the customer submits a restrictive order for shares which are admitted to trading on a regulated market, and this order of existing market conditions not met immediately, investment firm or a credit institution, unless the client has clearly indicated otherwise, take measures to ensure that, as soon as possible in order to reveal a market information about this order. It is considered that this requirement is met if the investment firm or a credit institution in accordance with the European Commission Regulation No. 1287/2006 article 31 presented by restrictive order the organizer of the regulated market or multilateral trading system maintainer. (4) the Commission is empowered to exempt investment brokerage company and a credit institution from the obligation referred to in the third subparagraph the restrictive order send a regulated market or multilateral trade Organizer system, if a transaction exceeds the amount of the stock or stock category normal trading volume. Stock or stock category normal trade volumes calculated by the European Commission Regulation No. 1287/2006 in accordance with the procedure laid down in article. (5) investment brokerage company and the credit institution has the right to combine client order with a transaction for own account or another customer's order only if the institution has developed and implemented an order for consolidation and allocation policy. Order consolidation and allocation policy can be included on the order execution policy, and it provides: 1) orders are entitled to merge only if there is a high probability that the order or transaction will harm their merger, customers whose orders are combined; 2) investment brokerage company and the credit institution before the order or combination of transactions has the obligation to inform each customer whose order is combined with another customer's order that such combination may cause losses in relation to that order; 3) joint order and fair distribution of transactions and in particular an explanation of how the volume and price of orders will affect the order of allocation in each case; 4) procedures are divided into United orders of customers if the combined order is partially executed; 5) procedures ensuring that this article is part of the sixth and seventh requirements to take the customer order and United deal on own account Division or redistribution. (6) if the investment firm or credit institution is merged in the transactions for own account with one or more client orders, so the transaction is distributed or redistributed without harming customer interests. (7) if the investment firm or a credit institution combines the client order with a transaction for own account and the combined order is partially executed, it divides the relevant transactions in order of priority: first, for the good of the client and the public. If the investment firm or a credit institution can reasonably demonstrate that without this combination, it would not have been able to execute the order with such favorable conditions or would not have been able to run at all, so for business on their own account can apply the proportion of income distribution. (8) the investment firm or a credit institution, transferring to another investment firm or credit institution from clients received instructions or orders for the provision of investment services, it also sends information about the recommendations and given to the customer from the customer in accordance with the conditions laid down in article 126.2 of the Act the information received. (9) the investment firm or a credit institution, transferring to another investment firm or credit institution from clients received instructions or orders for investment services and investment, provision of additional services is responsible for: 1) transfer the completeness and accuracy of information; 2) client consultation and recommendations provided. (10) investment brokerage company and a credit institution that receives from another investment firm or credit institution client instructions or orders for the provision of investment services by providing investment services or investment, take into account the additional information provided by the customer and information about the consultations and recommendations with regard to the specific investment services or additional services provided to the client by another investment firm or a credit institution, and closed the deal on the basis of this information. Article 128.2. The best results for the customer (1) investment brokerage company and a credit institution executing client orders on transactions with financial instruments, making investors the financial instrument for the management of the individual in accordance with the mandate of the investors or the adoption and transfer of customer orders for the execution of transactions in financial instruments provide the best results possible customer, taking into account price, costs, speed, likelihood of execution and settlement, size, nature of the transaction or any other observations relating to the execution of the order. (2) in order to ensure the best results for clients, investment brokerage company and a credit institution in accordance with the requirements of article 128.3 of the Act develop and approve order execution policy. (3) investment brokerage company and a credit institution shall evaluate and order execution policy determines which of the first paragraph of this article factors relevant to its operation, in order to ensure the best results to the client. To determine the importance of these factors in the execution of the order, an investment brokerage company and a credit institution shall assess the following additional criteria: 1) client characteristics, including client status — private or professional; 2) customer order form; 3) financial instrument that is the subject of the order; 4) place of execution of transactions in which an order can be executed (regulated market, MTF, systematic internaliser system, market maintainers or other liquidity provider). (4) investment brokerage company and the credit institution are forbidden to do business with clients or customers belonging to the holding of financial instruments, if it enters into a contract for the provision of investment services, has received the consent of the customer order execution policy. Investment brokerage company and a credit institution can make transactions outside regulated markets and multilateral trading system, obtaining the customer's prior consent for each individual transaction or providing for this option. (5) investment brokerage company and the credit institution is obliged, at the customer's request to prove compliance with the order execution order execution policy. (6) where an investment brokerage firm and the credit institution executing orders on behalf of a private client, the best possible result shall be determined as the total fee that covers the price of the financial instrument and the costs related to execution, including all costs incurred by the customer in direct connection with the execution of the order, including execution venue fees, settlement fees as well as fees for other execution of the persons involved. (7) in order to ensure the best results for the customer, if the customer's orders on transactions with financial instruments may be executed in multiple order execution policy for trade, investment and brokerage firm, a credit institution shall assess client results achieved in each point of sale and the results compared. The evaluation of investment brokerage company and a credit institution in addition to take account of its specific charges and the cost of execution of each trade. Establishing a Commission on enforcement, investment brokerage company and the credit institution is not entitled to unreasonably discriminate different outlets. (8) investment brokerage company and the credit institution is exempted from the obligation to ensure the best results possible for clients under the order execution policy, if the client has given specific instructions on how to execute transactions with financial instruments on order placement when a customer's financial instruments for individual management person shall execute the customer's order. In this case, the investment brokerage company and a credit institution comply with the client's specific instructions. Article 128.3. Order execution policy (1) where an investment brokerage firm and the credit institution executing client orders for transactions in financial instruments on behalf of a customer, a customer order execution policy for each category of financial instruments: 1) for information on commercial sites that investment brokerage company and a credit institution executing client orders. The order execution policy shall include at least those outlets where investment brokerage company and the credit institution plans to permanently ensure the best possible result for the client in the order; 2) factors that have determined the choice of point of sale financial instruments concerned in accordance with this law, article 128.2. (2) where an investment brokerage firm and the credit institution investor financial instruments management in accordance with the individual investor empowerment or adopt and transmit client orders for the execution of transactions in financial instruments, its order execution policy provide information on institutions where investment brokerage company and a credit institution deploys to execute client orders or transfer orders. Investment brokerage company and customer's orders, the credit institution is entitled to release only those institutions that have approved a policy that ensures the best possible result for the customer. (3) investment brokerage company and a credit institution once a year or in the event of significant changes that affect the investment firm or credit institution is able to continue to achieve the best possible result for the customer's order, using a permanent order execution policy that marketing site, review the order execution policy and Ordinance enforcement measures. If you make substantial changes to the order execution policy, investment brokerage company and the credit institution shall inform the client about them. (4) if the place of performance of the order of the list is amended, which the investment firm or a credit institution considers essential, it shall carry out the appropriate amendments to the order execution policy and inform customers about them. (5) investment brokerage company and a credit institution before a contract for the provision of investment services, will inform the customer about the order of this article in the order execution policy. Private clients investment brokerage company and a credit institution in accordance with the requirements of article 126.1 of the Act provides for its enforcement policy: 1) provides an overview of the first paragraph of this article, which factors in the investment firm or a credit institution considers it essential to ensure the requirements to achieve the best possible result for the client, or the procedure according to which the investment and brokerage firm, a credit institution shall assess and determine the significance of these factors; 2) lists the order in which the place of performance of an investment brokerage firm and the credit institution plans to permanently ensure the best possible result for the execution of the customer's order; 3) and clearly warns that customer specific instructions may hinder the public take action to it in accordance with the execution policy to achieve the best possible result for the execution of the customer's order for the elements that are included in this guidance. (6) where an investment brokerage firm and the credit institution in its order execution policy provides the ability to execute client orders outside a regulated market or a multilateral trading system, it shall clearly inform their customers about this opportunity. " 53. Article 129 be expressed as follows: "article 129. Customer cash holding (1) investment brokerage company is entitled to hold client funds to be used only with the financial instruments of the client transaction to be carried out, in accordance with the customer's investment and brokerage company in a written contract. (2) in clients ' funds investment brokerage company there separated from your money: 1) Member State central bank, if it contributes to the brokerage firms or credit institutions of such services; 2) registered in the Republic of Latvia in a bank or credit institution established in a Member State or registered in a foreign bank; 3) money market fund, which corresponds to the fifth paragraph of this article. (3) investment brokerage company is entitled to hold client money in a money market fund only with the client's prior consent. (4) investment brokerage company, acting as a credit institution or where the funds hold funds belonging to the customer, with proper skill and diligence to assess the competence of the credit institution or Fund and the reputation of the financial market of the country concerned, as well as applicable requirements or court practice on customers holding funds that could adversely affect the interests of the client. Investment brokerage company and a credit institution annually re-evaluate the designated credit competence and client money ownership. (5) money market fund, which, in accordance with the second paragraph of this article, an investment brokerage company is entitled to hold financial assets, is the open investment fund, which licensed and is being monitored in the Member State and shall comply with the following criteria: 1) the main objective of the investment is to maintain the net asset value of the Fund a constant at face value, less profit, or after the original investors capital plus earnings; 2 the main objectives of the investment) for investing in only high quality money market instruments with the delete or delete the remaining maturity of less than 397 days, or money market instruments which yield adjustment is calculated regularly in this term and that the weighted average maturity of 60 days. To ensure that this objective is entitled to make additional deposits to credit institutions; 3) liquidity is provided with same day or next day settlement. (6) high quality money market instruments within the meaning of this article are money market instruments with the highest rating awarded by all competent rating agency which has rated it. Competent rating agency for the purposes of this article, which is the Agency in accordance with the requirements of the law of credit institutions the Commission as suitable for external credit assessment institutions and which, by its professional activities, grants credit for regular money market funds. (7) investment brokerage company the holding of each customer-owned cash accounting. Customer owned cash accounting, investment brokerage firm shall ensure that: 1) is possible at any time to distinguish between one customer's money from other client funds or investment funds of the society; 2) records are regularly compared with those third parties, in which the company holds client funds. (8) the funds belonging to the investment firm to the client, may not be used for investment firms to satisfy the claims of creditors. This requirement also applies to cases where investment brokerage company in accordance with the procedure laid down in the law recognized as insolvent. " 54. To supplement the law with 129.1 and 129.2 pantušād: "article 129.1. The keeping of client financial instruments (1) investment brokerage company and the credit institution is entitled to hold the customer's financial instruments in accordance with the client and the investment firm or credit institution authorised in writing. (2) investment brokerage company and a credit institution belonging to the client financial instruments there apart from its financial instruments. (3) investment brokerage company and the credit institution is entitled client financial instruments belonging to hold at third parties. Investment brokerage company and a credit institution, the decision of a third party, at which to hold client financial instruments belonging to the proper skill and diligence to assess the person's competence and reputation of the financial market of the country concerned, as well as applicable requirements or market practices relating to the keeping of client financial instruments that could adversely affect the interests of the client. Investment brokerage company and a credit institution annually re-evaluate the designated person's competence and financial instruments of the client ownership. (4) investment brokerage company and the credit institution is entitled client financial instruments belonging to hold only to such third parties is subject to the relevant national requirements in force in the customer's financial instruments separate holding and monitored. (5) investment brokerage company and the credit institution is not entitled to refer the client financial instruments belonging to a foreign country registered third party, if this country does not regulate the holding of financial instruments by the third a person, except where the following conditions are met: 1) of the financial instrument or instruments associated with this investment nature requires that it be passed on to a third party held in that State; 2) financial instruments are held on behalf of the client and the Professional client has requested in writing to the investment firm to put them third-party held in the country. (6) investment brokerage company and a credit institution holding the customer's financial instruments. Customer owned financial instruments accounting investment brokerage company and a credit institution shall ensure that: 1) is possible at any time to distinguish between one customer owned financial instruments belonging to clients of other financial instruments or investment firm or credit institution-owned financial instruments; 2) records are regularly compared with those third party accounting of financial instruments that the company holds client financial instruments. (7) investment brokerage company and a credit institution, which the client financial instruments belonging to a third party, shall ensure that the financial instruments belonging to clients are identifiable separately from the third party or to the public-owned financial instruments. (8) investment brokerage company and a credit institution establishes appropriate organisational structure to reduce the customer's financial instruments or the rights associated with the loss or reduction of the risks which may result from improper use of the assets, fraud, poor administration, inadequate accounting or negligence. Article 129.2. Sworn auditor's report the investment brokerage company and a credit institution ensure that sworn auditor at least once a year, check that the measures taken are sufficient to comply with this statutory requirement for investment firms or credit institutions and financial instruments of the client and obtaining possession of the funds. Sworn auditor shall submit to the Commission a written report about the investment firm or credit institution measures the adequacy of statutory requirements. " 55. Article 130: turn off the title, the words "and the statement"; turn off the fifth; turn off the seventh, eighth and ninth. 56. To supplement the law with article 130.1 of the following: ' article 130.1. Financial instruments and cash account statements (1) investment brokerage firm or a credit institution to the client in accordance with the mutual agreement governing the customer's financial instruments, as well as holding at the customer's request, issue a financial instruments account statement for a certain period of time: 1) the transactions carried out with one, several, or all financial instruments; 2) during the entire existence of account transactions with one, several, or all financial instruments, including of the securities financing transactions; 3) determine the transactions with financial instruments; 4) account posted customer owned financial instruments. (2) account statements indicate the investment firm or credit institution authorised in any personally identifiable data, customer identification data, account number, for which the period reflected in the transactions in the account, the date of the account statement, the financial instrument for the identification data (name, ISIN code), beginning and ending account balance, the date on which the financial instruments account posted, each with financial instruments in the trading of financial instruments recorded quantity and price (if known) transferred in and out of the account, the account total number scrapped financial instruments during the period for which the account statement is issued. (3) an investment firm or a credit institution, ensure that the account statement is sent to the client at least once a year, if the information to be contained therein during the year, the client does not provide otherwise. The statement should contain the following information: 1) information about the financial instruments belonging to clients, posted at the end of the period covered by the account, which is provided in the statement. If the customer's financial instruments portfolio delivery date of the account statement contains one or more incomplete transactions, information about financial instruments reflect the application of the transaction date or the settlement date accounting data. The type of the selected inventory account statements are applied consistently; 2) indicated that the customer's financial instruments are used in securities financing transactions, and the extent to which they are used; 3) benefit the client has learned from his use of derivatives securities financing transactions, and gain grounds. (4) an investment firm or a credit institution which carries out the customer's individual management of financial instruments, the information referred to in this article may include the review of the investment services, which it provides to the customer in accordance with this law, article 128 of the eleventh part. (5) investment brokerage company open client money in the account statement showing the relevant data on the financial instruments account shall provide the information referred to in this article shall be equivalent to the information. " 57. Article 131: replace the fifth paragraph, the words "higher authorities" with the words "governing body"; to replace the tenth paragraph, the words "the provisions of the Commission" with the words "the provisions of Commission regulations". 58. off 132. in the first paragraph, the words "or person of confidence". 59.133. Article: turn in the second paragraph, the words "in accordance with the requirements of the law"; replace the third paragraph, the words "the Commission" with the words "legislative provisions"; off in the fourth paragraph, the word "relevant". 60. the supplement to chapter XII 133.1, 133.2, 133.3, 133.4 and 133.5 article as follows: "article 133.1. Financial instruments to trading on the multilateral trading system (1) multilateral trading system can be maintained: 1) investment brokerage company that received the license of the multilateral trading system; 2) a credit institution, which the Commission has authorised the credit institution's activity and in accordance with the procedure laid down in this Act acquired the rights to maintain the multilateral trade system; 3) the market Organizer, who received a license to organize the regulated market and who in accordance with the procedure laid down in this Act acquired the right to maintain a multilateral trading system. 133.2 article. Multilateral trading system maintainer responsibilities (1) multilateral trading system maintainer provides: 1) financial instruments the fair and open trade system and equal treatment of scheme members; 2 availability of) a single system dalībniekiemun other system users to be able to take investment decisions; 3) system users with the information available on the multilateral trading system maintainer responsibilities in the process of conclusion of transactions in the system; 4) safety of conclusion of transactions and billing efficiency. (2) multilateral trading system maintainer confirms system binding rules, which provide for: 1) criteria for financial instruments trading this system; 2) trading of financial instruments; 3) system acquisition and loss of status. (3) support the multilateral trading system will monitor the operation of the system in accordance with the procedure laid down in this Act. (4) the multilateral trade system maintainer supervises the progress of the trade on the system to open, in accordance with the second paragraph of this article, the investment firm, a credit institution or a market Organizer claims irregularities and prevent market manipulation. (5) multilateral trading system the prosecution is entitled to require and receive from members of the information and documents needed to decide on the eligibility of participants in the multilateral trading system. (6) the multilateral trade system maintainers shall forthwith inform the Commission of this Act and the public prosecution system of regulations, as well as on decisions taken in relation to these offences. (7) the multilateral trade system maintainer must immediately, at the request of the Commission, suspend or terminate the financial instrument system. (8) to ensure the settlement of transactions in the multilateral trading system, the peacekeepers have the right to enter into agreements on access to the Centre of the clearing, central counterparty or a settlement system of another Member State. The Commission may restrict the conclusion of such an agreement only if it can be shown that these measures interfere with the proper functioning of the multilateral trading system. The Commission shall take into account the supervision and monitoring of the system by other clearing and settlement systems oversight or supervisory bodies. 133.3 article. Participants in the multilateral trading system (1) the participants in the multilateral trading system is a person who, in accordance with this law, 133.2 the second paragraph of article 3 of the procedure defined in paragraph shall be entitled to Transact on this system. (2) The participants in the multilateral trading system can become: 1) investment brokerage company, for which the Commission has issued a license for the provision of investment services or a credit institution, to which the Commission has authorised the credit institution's activity and in accordance with the procedure laid down in this Act initiated the provision of investment services; 2) another Member State investment firm or a credit institution in the country of registration is received the license for the provision of investment services. (3) support the multilateral trading system is entitled to grant membership to a person not mentioned in the second paragraph of this article, but under the system approved criteria is suitable and adequate, that has a sufficient level of trading ability and competence in the multilateral trading system, and has sufficient resources and organizational structure to make the multilateral trading system, the participant's obligations and guarantee the adequate settlement of transactions. (4) the participants in the multilateral trading system, dealing the multilateral trading system, in relation to other multilateral trade system is entitled not to apply this law, 126, 126.1, 126.2, 128.1 and 128.2, 128, the requirements referred to in article 128.3. 133.4 article. The order in which the Republic of Latvia in the multilateral trading system licensed by the prosecution launched the action in another Member State (1) in the Republic of Latvia in the multilateral trading system licensed by the prosecution is entitled to initiate action in another Member State, to facilitate this contribution established brokerage firms and credit institutions access to the multilateral trading system. (2) licensed in the Republic of Latvia the multilateral trading system, which the prosecution wants to enter in one of the Member States, shall submit to the Commission an application indicating that country. (3) the Commission shall, within 30 days after receipt of the application, send it to the management authority of the Member State concerned. Multilateral trading system maintainer may start from the date of the relevant national supervisory authority has received from the Commission communication. (4) the Commission, at the request of the supervisory organ shall transmit personally identifiable data on the Republic of Latvia registered investment company or a credit institution, which is a multilateral trading system, to a participant in that Member State. 133.5 article. The order in which is established in another Member State multilateral trade system maintainer the operation undertaken by the Republic of Latvia (1) registered in another Member State multilateral trade system the prosecution is entitled to take action in the Republic of Latvia, the Republic of Latvia to promote registered investment firms and credit institutions access to the multilateral trading system. (2) registered in another Member State multilateral trade system the prosecution is entitled to enter the Republic of Latvia, where the Commission has received a notice from the multilateral trading system, the management authority of the State of origin. (3) the Commission has the right to request the multilateral trading system, the management authority of the State of origin of the identifying data on the multilateral trading system, established in the Republic of Latvia. " 61. To supplement the F section chapter XII1 of the following: "chapter XII1 of the financial disclosure requirements 133.6 article. Notification of transactions in regulated market include financial instruments (1) investment firms and credit institutions that provide investment services with regulated markets in financial instruments, according to the European Commission Regulation No. 1287/2006 12 and 13 and article about the transactions occurred at least every working day report: 1) the market Organizer duly on the regulated markets of the Republic of Latvia included financial instruments where the transactions took place on the regulated market concerned, and if the investment brokerage firm and the credit institution is a member of the organising of the relevant market; 2) Central Depositary duly on the regulated markets of the Republic of Latvia include financial instruments, if the transactions occurred outside the regulated market, regardless of whether the investment brokerage firm and the credit institution is or is not a central depository Member; 3) established the Commission on transactions with other Member States ' regulated markets in financial instruments irrespective of whether the transaction is concluded or on a regulated market outside a regulated market. (2) the first part of this article, the reporting obligations set out in the following regulated markets of financial instruments included: 1) shares; 2) bonds and other debt worth the paper; 3) rights to buy shares, bonds and other debt securities; 4) stock certificates; 5) derivatives; 6) money market instruments; 7) open investment fund units or comparable securities, confirming participation in open investment funds or those pielīdzināmo's total investment. (3) the notification shall contain at least the following information: 1) financial instrument ISIN code and the way; 2) transaction date date and time; 3) transaction price, if known; 4 the applicant company); 5) European Commission Regulation No. 1287/2006 table 1 of annex I to that information which is relevant to the type of financial instruments to which the transaction was carried out. (4) this article is the first part of the statement set out in paragraph 1 is not required for transactions in respect of which the relevant regulated market trading system is available in the entire third part of this article, the information specified in. (5) in the third paragraph of this article, certain information about the transactions in financial instruments, as well as on Member States ' regulated markets include financial instruments investment brokerage company and a credit institution to be kept for at least 10 years. (6) the Central Depositary after the first part referred to in paragraph 2 of the report of receipt immediately sent the market Organizer, which regulated market financial instruments include, information on transactions taking place outside the regulated market. The order in which to send information about the transactions taking place outside the regulated market, the central depository is mutually agreed with the market Organizer. (7) the market Organizer summarizes the regulated market concerned, and concluded transactions of central depository of information received for the transactions concluded outside a regulated market with a regulated market concerned include financial instruments, and at least every working day shall forward the information collected to the Commission. For sending agendas market Organizer is mutually agreed with the Commission. (8) the third paragraph of this article 1, 2, and 3. the information referred to in paragraph a summary of the market Organizer in its homepage on the internet. In addition to the market organizer can publish this information in any other way, according to its Organizer, the requirements of the regulations. 133.7 article. Pre-trade disclosure obligation investment brokerage company and the credit institution which is a systematic internaliser (1) pre-trade disclosure requirements apply to investment brokerage company and a credit institution, which, on an organised, frequent and systematic basis, deals with the included regulated market shares for their own account by executing client orders outside a regulated market or a multilateral trading system and in accordance with the European Commission Regulation No. 1287/2006 article 21 requirements be considered systematic internalisers except when the amount exceeds the standard market size. (2) in order to determine the standard market size, the Commission at least once a year for each share it under the European Commission Regulation No. 1287/2006 article 9 contains the relevant competent authority in connection with the liquidity of shares, pursuant to article 33 of that regulation, the calculation of the market value of completed orders and the average value of the stock after the split categories in accordance with Annex 2 of table 3. To determine the order of the market average, account is taken of all orders executed in the European Union in respect of the shares, except for orders exceeding that share the normal market size. (3) in order to determine the amount of the transaction that exceeds the normal market share volume, the Commission at least once a year for each of the shares for which it is the relevant competent authority in relation to the liquidity of shares, subject to the European Commission Regulation No. 1287/2006 article 33, the average daily turnover. On the basis of the average daily turnover of shares divided into categories in accordance with annex II, table 2, and for each of the categories of shares transaction volume in excess of the normal market size. (4) for information on the categories of shares by the Commission on its homepage on the internet and sent to the Committee of European securities regulators. (5) investment brokerage company and a credit institution, as a systematic internaliser, made for the transaction amount or amounts which it detects quotes. Quoted price includes a public purchase or sale price or both of these prices on the amount that is not greater than the stock category, which includes the shares, standard market size. Standard market size shall be determined in accordance with the European Commission Regulation No. 1287/2006 requirements of article 23. Each of the quoted prices reflect the existing market conditions according to article 24 of that regulation. (6) investment brokerage company and a credit institution which is a systematic internaliser, in accordance with the European Commission Regulation No. 1287/2006, article 29 and 30 permanent public requirements during normal trading hours, they quoted a price only such regulated market shares included, which is a liquid market. Investment brokerage company and the credit institution is entitled to extraordinary market conditions, withdraw their quotes, which are made public. If the shares are not a liquid market, the investment brokerage company and notify the credit institution on the quoted prices of the shares at the customer's request. (7) the Commission shall evaluate the liquidity of the shares and determine which shares in accordance with the European Commission Regulation No. 1287/2006 article 22 the criteria considered to be liquid shares. By the Commission on its homepage on the internet a list of such shares and shall forward it to the Committee of European securities regulators. (8) the Commission shall set up and on its homepage on the internet their investment brokerage company list, which it issued the license for the provision of investment services, and a list of credit institutions the Commission has authorised the credit institution's activity and in accordance with the procedure laid down in this Act initiated the provision of investment services and, in accordance with the provisions of this article shall be regarded as systematic internalisers that do business with liquid shares. The Commission shall forward this list to the Committee of European securities regulators. (9) investment brokerage company and a credit institution deemed systematic internalisers, runs the private client orders submitted on the shares in respect of which it is a systematic internaliser, for they set the price quoted at the time of receipt of the order. (10) investment brokerage company and a credit institution deemed the execution of systematic internalisers, professional customer order submitted on the shares in respect of which it is a systematic internaliser, at a price fixed at the time of receipt of the order. The order may be executed at a better price in justified cases, if this price is close to market conditions and if the order quantity exceeds the normal order of a private client, the amount determined in accordance with the European Commission Regulation No. 1287/2006 article 26. (11) investment brokerage company and a credit institution deemed systematic internalisers may execute the order submitted by the customer in a professional at a price which differs from it in quotes, not subject to the conditions of part decades in respect of transactions with several securities, the performance of which is considered part of a single transaction, or for orders, subject to conditions which are not related to the current market price and that the European Commission Regulation No. 1287/2006 article 25. (12) where an investment brokerage company and a credit institution deemed systematic internalisers, established only one quoted price or the price listed for the transaction amount which is lower than the standard market size, and receives orders from the customer for the transaction, which is more than the amount for which specified the price listed, but does not reach the standard market size, it has the right to execute the order which exceeds its volume of transactions having quoted price is fixed. In this case, this part of the order for the execution of systematic internaliser in the price quoted, except where otherwise permitted in accordance with this article the tenth and the eleventh part. (13) where an investment brokerage firm and the credit institution as a systematic internaliser shall be determined quotes various amounts of transactions and receives order for the amount of the transactions listed, you want to execute the order on one of the prices in accordance with the requirements of article 128.1 of the Act, other than this article, the eleventh and twelfth referred cases. (14) investment brokerage company and a credit institution deemed systematic internalisers, adopted on the basis of its trade policy, determine: 1) objective and non-discriminatory criteria, in accordance with which it shall determine the customer categories that are available in certain quotes; 2) order in which customers can do business with systematic internalisers for the quoted prices laid down; 3 the total number of transactions), which it made with one customer in accordance with the published conditions. (15) the investment brokerage company and a credit institution deemed systematic internalisers, taking into account the customer's credit status, the counterparty risk and the final settlement of the transaction, have the right to refuse or suspend trade in its established quoted prices. (16) the investment brokerage company and a credit institution deemed systematic internalisers, is entitled to a non-discriminatory manner to determine the maximum number of transactions per customer and with different clients at the same time the maximum total number of transactions carried out, if the customer order number or amount much greater than under the European Commission Regulation No. 1287/2006 requirements of article 25 of the threshold. (17) the pricing and disclosure of order execution, as well as compliance with the requirements laid down in this article shall be monitored by the Commission. 133.8 article. Post-trade disclosure requirements for investment firms and credit institutions (1) investment brokerage company and the credit institution outside a regulated market or a multilateral trading system performance transactions on own account or on behalf of a client with a regulated market shares, included information about the transactions public pursuant to the European Commission Regulation No. 1287/2006 3 and article 27. (2) this information public as soon as possible after the conclusion of the transaction in accordance with the European Commission Regulation No. 1287/2006 article 29 and 30, subject to reasonable commercial conditions and in such a way as to be easily accessible to other market participants. (3) investment brokerage company and the credit institution with the Commission's prior consent of šēj the European Commission Regulation No. 1287/2006 28 in accordance with the procedure laid down in article is entitled to delay the first paragraph of this article, if the disclosure of the transaction amount exceeds the shares or share the normal market size category. Investment brokerage company and the credit institution shall inform the participants of market disclosure delay conditions accepted by the Commission. 133.9 article. Pre-trade disclosure requirements of the multilateral trading system (1) support the multilateral trading system under the European Commission Regulation No. 1287/2006 and article 29 requirements during normal trading hours permanently and subject to reasonable commercial conditions in the system of public information on the regulated market of the shares included in the purchase and the sale price and the amount of the order submitted at those prices. (2) the Commission may exempt the multilateral trading system in support of the first part of this obligation to publicise the information depending on the market model and the type and size of orders in the European Commission Regulation No. 1287/2006 3, 18, 19 and 20 in the cases specified in article, especially if the transaction amount exceeds the stock or stock category normal market size. 133.10 article. Post-trade disclosure requirements of the multilateral trading system (1) support the multilateral trading system under the European Commission Regulation No. 1287/2006 3, 27 and article 29 requirements as soon as possible after the conclusion of the transaction and subject to reasonable commercial conditions for public information on transactions with shares listed on the regulated market. (2) the first part of this article in the disclosure obligation does not apply to transactions in respect of which the relevant trading system have access to all the first part of this article, the information specified in. (3) support the multilateral trading system with the Commission's prior consent to šēj the European Commission Regulation No. 1287/2006 28 in accordance with the procedure laid down in article can delay the first paragraph of this article, the disclosure of the information to market participants and the public, if a transaction exceeds the amount of the stock or the stock of conventional market size category. Multilateral trading system maintainer to inform market participants of disclosure holding conditions, accepted by the Commission. " 62. Express article 134, the first paragraph by the following: "(1) a foreign country registered investment firm or a credit institution which received the license for the provision of investment services to its country of registration (hereinafter in this chapter: a foreign company), may become the market Organizer, central depository participant or participants in the multilateral trading system after the registration in the Commission." 63. Replace article 135 of the fifth subparagraph in point 1 the words "the provisions of the Commission" with the words "legislative provisions" of the Commission. 64. To complement the article 138 of the third with 4, 5, 6, 7, 8, 9 and 10 of the following paragraph: "4) require from any person information about the activities of the financial and capital markets, as well as to invite the following persons to the Commission and to provide on-the-spot information; 5) acquainted with the documents necessary for its mission and tasks; 6) to request and receive from the financial instrument for the operators phone call prints and other type of data records; 7) require that financial instruments market participants to stop any actions that are inconsistent with the requirements of this law; 8) to suspend trading of the financial instruments; 9) restrict the investment firm or credit institution authorised to provide investment services or hold financial instruments; 10) withdraw the investment brokerage company licences issued to investment services and investment for the provision of additional services. " 65. Make 140. article as follows: "article 140. Established in another Member State in the supervision of the investment brokerage company (1) the Commission shall monitor the investment established in another Member State of the branch of brokerage company operating in the Republic of Latvia in compliance with this law, article 124 of the first part of paragraph 9 and 11, 126, 126.1, 126.2, 129, 128.1, 128.2, 128.3, 133.6, 133.7 and 133.8 article. The Commission has the right to inspect such branches of the measures taken to ensure these requirements. If the Commission finds that this Member State registered investment brokerage firm branch, which operates in the Republic of Latvia, an activity which is contrary to this Act 124 of the first paragraph of article 9 and paragraph 11, 126, 126.1, 126.2, 129, 128.1, 128.2, 128.3, 133.6, 133.7 133.8 article, and it does not immediately require the investment brokerage company terminate these steps. (2) if the registered in another Member State of the investment brokerage firm branch, which operates in the Republic of Latvia continues to take actions that are inconsistent with this Act 124 of the first paragraph of article 9 and paragraph 11, 126, 126.1, 126.2, 129, 128.1, 128.2, 128.3, 133.6, 133.7 and 133.8 article, the Commission shall inform the management authority of the country of origin and take steps to prevent such infringements. This measures the Commission is entitled to prohibit the infringement prevention investment brokerage company concerned to continue the provision of investment services in Latvia. The Commission of the measures taken in accordance with article 147 of this law, shall inform the European Commission requirements. (3) if the Commission finds that, in another Member State registered investment brokerage firm branch, which operates in the Republic of Latvia, an activity which is contrary to the Republic of Latvia the applicable financial instruments market law regulatory requirements other than those referred to in the first subparagraph, it shall immediately inform the management authority of the country of origin and requested it to prevent any irregularities, as well as to inform the Commission of the measures taken. (4) if the Commission finds that, in another Member State registered investment brokerage firm that provides investment services without opening the branch, an activity which is contrary to the Republic of Latvia the applicable financial instruments market-regulating laws, it shall immediately inform the management authority of the country of origin and requested it to prevent any irregularities, as well as to inform the Commission of the measures taken. (5) where a registered in another Member State of the investment brokerage firm branch, which operates in the Republic of Latvia or another Member State registered investment brokerage firm that provides investment services without opening the branch, continues to engage in activities that are in conflict with the Republic of Latvia the applicable financial instruments market-regulating laws, it shall inform the management authority of the country of origin and take steps to prevent such infringements. This action within the Commission is entitled to prohibit the infringement prevention investment brokerage company concerned to continue the provision of investment services in Latvia. The Commission of the measures taken to inform the European Commission in accordance with article 147 of this law. (6) in the first, second, third and fourth requirements do not prevent the Commission take steps to prevent abuses, which is contrary to the public interest in the protective laws of the Republic of Latvia. This action within the Commission is entitled to prohibit the infringement prevention investment brokerage company concerned to continue the provision of investment services in Latvia. (7) the provisions of this article are without prejudice to the established in another Member State of the investment brokerage company the right to distribute information in the Republic of Latvia, and advertise its services, if such information and advertising is not contrary to the public interest in protective legislation. (8) the Commission is empowered to conduct internal checks established in another Member State of the investment firm's branch in the Republic of Latvia, on its own initiative and by country of origin, at the request of the supervisory authorities. A management authority of the country of origin are entitled to make their own internal inspection of investment brokerage company branch office in the Republic of Latvia, or authorize another person to perform this examination, the Commission is notified in advance. (9) the Commission has the right to refuse, by a reasoned decision of the other Member State supervisory authorities to carry out checks in the territory of the Republic of Latvia upon the request of the supervisory authorities, as well as to refuse another Member State supervisory authorities authorized the participation of the representatives of the examination if: 1) such examination or other supervisory authorities of the Member State authorised the participation of the representatives of the adverse affects of the Republic of Latvia the sovereignty, security or public policy; 2) for the same offence and against the same persons already started proceedings in the Republic of Latvia; 3) for the same offence and against the same persons already accepted the judgment of the Court of Justice. (10) the Commission established in another Member State prohibited investment brokerage firm branch, which operates in the Republic of Latvia, or registered in another Member State of the investment firm provides investment services in Latvia, do not open a branch to continue the provision of investment services in Latvia, where it received the management authority of the country of origin of the communication on the investment firm to withdrawal of the licence issued. (11) the Commission is empowered to conduct internal checks in another Member State registered investment brokerage company, which is registered in the Republic of Latvia is organising the regulated market and make transactions on a regulated market without the opening of the branch, having informed the supervisory authorities of the Member State concerned. " 66. Article: 142.1 to supplement the first sentence with the following: "If the recipient of the outsourcing and outsourcing provider company in the same group, recipient of outsourcing by following the requirements of this article, take into account the extent to which it controls the external service provider or is affected by the outsourcing provider, or the extent to which the outsourcing provider is subject to the Group's consolidated supervision."; make the fifth subparagraph of paragraph 3, the bottom point "a" the following: "(a) the right of a beneficiary of outsourcing) to continuously monitor the quality of the provision of outsourcing, the right to consult all documents and registers of accounting documents, as well as demand from outsourcing provider information related to outsourcing,"; adding to the fifth subparagraph of paragraph 3 with the "f", "g" and "h" section as follows: "(f)) outsourcing provider's obligation to ensure the quality and the delivery of outsourcing to properly manage the outsourcing the provision of associated risks, g) outsourcing provider's obligation to inform the beneficiaries of the outsourcing of any changes that could affect its ability to meet the outsourcing effectively in appropriate quantity, quality and in accordance with the requirements laid down in this Act, HR outsourcing provider) obligation not to disclose information associated with the outsourcing of the beneficiary or client and in accordance with the requirements of the law contains business secrets; "; Supplement fifth with paragraph 5 by the following: "the requested action 5) outsourcing recovery in exceptional circumstances, including spare equipment and periodic check, if necessary, to ensure the continuity of investment services and the protection of the interests of the client in relation to a function, service or activity that is passed to the outsourcing provider."; Add to sixth with paragraph 5 by the following: "5) outsourcing of receipt of sais clouded risk assessment and management procedures." 67. in article 142.2: make the first part of paragraph 2 as follows: "2) outsourced reception may limit the market Organizer, central depository or investment firm to provide the services set out in this law, as well as the customer may interfere with legitimate interests or worsen the conditions on the basis of which the Commission has issued a license to the recipient concerned outsourcing professional activity;" Add to article 2.1 part as follows: "(21) the Commission should have the right to request from outsourcing, the requested information related to outsourcing or required the Commission's functions." 68. Article 143 of the expression as follows: "article 143. Exchange of information with other Member States ' supervisory authorities in the provision of investment services for monitoring (1) the Commission is responsible for cooperation and exchange of information with supervisory authorities of other Member States to provide investment the monitoring of the provision of services throughout the territory of the Member States. (2) the Commission, on the basis of a reasoned request, provide other supervisory bodies of the Member States of information on their investment brokerage company Board and Council members (if any) and the owners, who provide investment services on the territory of the Member States concerned or which have close relationship with any of the licensed member or licensed investment brokerage firms. The Commission is right to point out that this information may be shared with third parties, which it needed its own statutory functions, only with the prior written consent of the Commission. (3) the Commission shall inform the management authority of the Member State concerned of any sanctions and operational restrictions that it imposed in the Republic of Latvia, such registered investment brokerage firms that provide investment services on the territory of the Member State concerned. (4) the exchange of information for the purposes referred to in this article the Commission shall, in accordance with the European Commission Regulation No. 1287/2006 article 15 requirements carried out by supervisory bodies of another Member State, recognised as contact information exchange. " 69. Replace article 144 of the eleventh paragraph, the words "Commission of securities regulators" with the words "securities regulators". 70. Supplement article 144.1 of the sixth and seventh paragraph as follows: "(6) if the Commission of the Act 55 of the agenda has received information on the regulated market organizer's decision to suspend a financial instrument, or to exclude from the regulated market of the financial instrument, which is included in the other Member State of the regulated market, it shall immediately inform the management authority of the Member State concerned. The Commission shall inform the management authority of the Member State concerned, even if the same has decided on a financial instrument the suspension or exclusion from a regulated market which are included in other Member State of the regulated market. (7) if the Commission from another Member State supervisory authorities have received information on the financial instrument the suspension or exclusion from a regulated market, which is listed on the regulated market in the Republic of Latvia or traded in the multilateral trading system in the Republic of Latvia, it requires such a financial instrument the suspension or exclusion from a regulated market in the Republic of Latvia. The Commission is not entitled to require the suspension of trading in a financial instrument or exclusion from a regulated market, if it can be detrimental to investors ' interests or the normal operation of the market. " 71. To supplement the law with article 144.4 as follows: "article 144.4. Exchange of information with other Member States ' supervisory authorities on transactions with financial instruments (1) the Commission is responsible for cooperation with other supervisory authorities of the Member States, to ensure the exchange of information on regulated market include financial instruments. (2) the Commission shall exchange information with the other Member States ' supervisory authorities about transactions in financial instruments shall be carried out in accordance with the European Commission Regulation No. 1287/2006 requirements of article 14. (3) information received by the Commission of the Act in order for article 133.6 transactions made by the other Member State of the investment firm and a branch of the credit institution, it shall send the Member State concerned to the supervisory authority. (4) the information received by the Commission of the Act in order for article 133.6 transactions undertaken by the Republic of Latvia registered investment companies and credit institutions of another Member State on the regulated market financial instruments, it shall forward to the competent authority of the Member State concerned, which is a specific financial instruments in accordance with the competent authority in accordance with the European Commission Regulation No. 1287/2006 article 8. " 72. in article 145: Supplement to article 1.1 part as follows: "(11) the Commission is empowered to contract for the exchange of information with foreign bodies, institutions or other entities, which are: 1) the supervision of credit institutions, other financial institutions, insurance undertakings and the supervision of financial markets; 2) are responsible for the investment brokerage firm liquidation, bankruptcy and other similar procedures; 3) performance of supervisory functions, audit investment firms and other financial institutions, credit institutions and insurance companies, or which administer compensation schemes; 4) is responsible for overseeing the bodies involved in the liquidation of the investment brokerage firm, bankruptcy and other similar procedures; 5) are responsible for overseeing the persons charged with carrying out an audit of the investment brokerage firms, insurance companies, credit institutions and other financial institutions. "; to supplement the article with the third part as follows: "(3) the Commission is entitled to conclude agreements for the exchange of information with the first part and 1.1 said institutions and authorities, if the foreign law provides for the Republic of Latvia law prescribed liability equivalent responsibility for the limited access of the unauthorised disclosure of information. Such information shall be used only to carry out the financial and capital market supervision or the relevant authorities the statutory functions. The information received by the foreign authorities concerned may be disclosed only with the written consent of the Commission, and only for the purpose for which consent was given. " 73. To supplement article 146, the third paragraph with the paragraph 5 by the following: "5) to monitor the site to trade financial instruments." 74. Supplement article 147 in the first part of paragraph 6 by the following: "6) activities it has conducted pursuant to this law, the second paragraph of article 56.1 and 140. the second and fifth." 75. Add to article 148 of the eighth and the ninth subparagraph by the following: "(8) on investment services and investment, provision of additional services not subject to the requirements of this law, the Commission has the right investment firm or credit institution warn or impose fines of up to 10 000 lats. (9) On this statutory pre-trade and post-trade disclosure of non-compliance to the Commission is the right investment firm, a credit institution or a regulated market organizers to warn or impose fines of up to 10 000 lats. " 76. The transitional provisions: to replace the introductory paragraph of paragraph 4.3, the words "stock winners" with the word "shareholders"; Replace subparagraph 1 of paragraph 4.3, the number and the words "article 61, first and third part" with a number and the word "the" in article 61; replace the words "a 4.4 share winners" with the word "shareholders"; Add to transitional provisions with 37, 38 and 39 of the following paragraph: "37. Issuer's financial instruments are included in the regulated market, until February 1, to the Commission: 1) the issuer's internal rules laid down for the internal information holders list creation and maintenance, as well as the arrangements for the internal information holders list includes persons may carry out transactions with the issuer's financial instruments or commodity derivative instruments; 2) insider list of holders pursuant to article 86 of this law in the second and third requirements set out in part. The list includes historical information on former holders of inside information, starting from the date of establishment, and current information on existing internal information holders. Existing internal information holders of the year and the date when the person on the list, former internal information holders of the year and the date when the person was included in the list of internal information holders, and the year and the date on which the person of the issuer's internal information was no longer available. 38. investment brokerage companies, which have received a licence from the Commission for the provision of investment services and credit institutions in accordance with the procedure laid down in this Act have acquired rights to provide investment services, until February 1, develop this law referred to in article 124.1 policies regarding client status, referred to in article 127 conflicts of interest prevention policy and referred to in article 128.3 order execution policy. 39. the investment brokerage companies, which have received a licence from the Commission for the provision of investment services and credit institutions in accordance with the procedure laid down in this Act have acquired rights to provide investment services, until February 1, inform existing customers of their status in accordance with the requirements of article 124.1 of the Act. " 77. The particulars in reference to European Union directives: turn off 2 and 3; to complement the reference with 15, 16 and 17 as follows: "15) the European Parliament and of the Council of 21 April 2004, Directive 2004/39/EC on markets in financial instruments amending Council directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC; 16) of the European Parliament and of the Council of 5 April 2006, Directive 2006/31/EC, as regards certain deadlines of amending Directive 2004/39/EC on markets in financial instruments; 17) 2006 august 10 of Directive 2006/73/EC of the European Parliament and of the Council Directive 2004/39/EC as regards the organisational requirements and operating conditions for investment firms and defined terms for the purposes of that directive. "
The law adopted by the Parliament in October 4, 2007. President Valdis Zatlers in Riga V 2007 October 25

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