The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on investment firms" make law "on investment firms" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1998, no. 3; 2000, no. 13; 2002, nr. 23) the following amendments: 1. Put the name of the law by the following: "investment management company law".
2. Replace the entire text of the Act, the word "Finance" with the word "financial".
3. Replace the entire text of the Act, the words "the Republic of Latvia" with the word "Latvia".
4. Article 1: Express (3) as follows: "3) units — a transferable security, which shows the investor's participation in the Fund Investment Fund and from the participation of law;";
Express points 5 and 6 by the following: "5) investment object: transferable securities, money market instruments, real estate, a credit institution deposits and other financial instruments, in accordance with the provisions of this law, investment management company is entitled to acquire the assets of the Fund;
6) public officials — investment management company Board members, investment fund managers, as well as other persons who are authorized to give instructions in respect of the assets of the Fund or to deal with it in the name of the company; "
Replace paragraph 7, the words "investment firms" with the words "investment management";
to supplement the article with 15-21 as follows: "15) Government services — management of investment funds and other services in accordance with the procedure laid down in this Act shall be entitled to provide investment management company;
16) management company in the country of origin: the country where the investment management company is established (in which the management company has its registered office);
17) management company, national of the host State, in the territory of which a management company has a branch or in the territory of which the management company provides management services;
18) personal control — control over the company, if: (a)) this person has decisive influence on the participation or group contract in accordance with the Group's regulatory laws, b) between a person and a company of point "a" exists in those relationships analogous relationships;
19) — the parent company of the company, which controls another company;
20) subsidiary company: a company that is controlled by another company;
21) close relations — two or more person correlation: a) in the form of participation — direct participation, which covers 20 percent of the vote and over or share capital, or controls over such amounts of voting rights or capital, b), (c) the type of control) to one and the same person by a control type. "
5. Replace article 2 the word "securities" with the words "financial instruments" and the word "securities" — with the words "financial instruments and capital".
6. Add to article 3 of the third part as follows: "(3) in the first part of the operations must be carried out only: 1) company established in Latvia, which in law has received the license administration services;
2) in a Member State of the European Union or the European economic area (hereinafter referred to as Member States) licensed investment management company under article 77 of the Act. "
7. Express chapter II the following: "chapter II. Investment management company, article 4. Investment management company activities (1) in Latvia, the investment management company is incorporated in the form of a joint stock company. Investment management company (hereinafter — the company) operates in accordance with this law, commercial law, other laws and its Statute.
(2) the Society shall have only registered shares.
(3) the company may initiate administrative services only after the financial and capital market Commission (hereinafter "Commission") in accordance with the procedure laid down in this Act it has issued a licence for the provision of Government Services (hereinafter licence).
(4) the licence specifies the administrative services which the public is entitled to provide, according to article 5 of this law.
(5) licences shall be issued by the Commission without time-limit.
5. article. Types of activities (1) the company's main activity is the management of investment funds. Investment fund governance includes the following services: 1) the investment management of the Fund;
2) Fund Administration, which includes the following activities: (a) the legal and accounting Fund) issue sorting, b) provision of information by the investors of the Fund or any other public customers, c) at the request of the Fund investment certificates of value and price, d) Fund regulatory compliance monitoring, e) the Fund's distribution of income, f) emission and the units atpakaļpirkšan, g) settlement of contractual obligations, h) with funds related to the keeping of the transaction;
3) Fund marketing (advertising, distribution units, market research URu.tml.).
(2) in addition to the first paragraph of this article to the operation must be performed for the individual investor management (also manage private pension funds the retirement plan funds) in accordance with the mandate of the investor.
(3) a company to which this law has been issued a license in the second part of the provision of the services may provide advice on investments in financial instruments.
(4) the company shall provide only for the second part of this article in the services, and may not provide the third part of this article is referred to by service, if it in accordance with this Act is not permitted to give the second part of this article, these services.
(5) the company registered in Latvia, which received the license for the provision of government services is entitled to manage the State funded pension scheme in accordance with the State funded pension law.
6. article. The location of the company and the firm registered in Latvia (1) the Management Board of the company (the company seat) located in Latvia.
(2) the company of the expression "to be included in the investment management company" or the abbreviation "IP".
(3) commercial companies that do not follow this law, your firm may not use supplements, which direct or indirect reference to the public.
7. article. The public shareholders and the acquisition of a qualifying holding, the reduction and termination of the society (1) of the company's shareholders may be just such a person: 1) whose identity can be verified;
2) which has an impeccable reputation;
3) which has a stable financial situation, which can be well documented.
(2) the examination of a person's reputation and financial standing, the Commission referred to in the first paragraph, the criminal identity and documents about the financial position, which allows you to verify the free capital adequacy the investment capital of the company, as well as on whether the funds invested are not obtained unusual or suspicious transactions.
(3) shareholders may not be natural persons as well as legal persons, to which the founders (shareholders) and owners (actual beneficiaries) can be subject to this law, article 9 of part 1, 2, 3, or 6 points.
(4) a Person who is licensed by the Commission in the public wants directly or indirectly a participation, which covers 10 and more percent of the company's share capital or of the voting shares or the number also enables you to significantly affect the company's financial and operational policy (hereinafter referred to as a significant interest), or want to increase significantly the amount of participation, reaching or exceeding 20, 33 or 50 per cent limit or becoming a parent company for it shall notify the Commission in writing in advance. The notification shall specify the extent of the percentage of participation in the company's share capital or of the voting shares. The notification shall be accompanied by this law, article 10 paragraph 2 of the second paragraph of the mentioned documents and information.
(5) Not just for participation is a person for voting rights in the company. The amount of voting rights shall be determined taking into account: 1) the voting rights arising from the shares, which have gained a third person in his own name but on behalf of that person;
2) voting rights arising from the shares, which gained the company located in the person's control;
3) voting rights resulting from those third persons suspension shares, which has concluded a written contract for the long-term or systematic common action with regard to public administration;
4) third party owned voting rights that have the rights to use the person or persons in control of an existing company in accordance with the conclusion of a written contract for a definite period or without a time limit, whether or not for consideration;
5) voting rights arising from the person holding the transferred shares, of which the person is entitled to use at their discretion without a separate task from someone shares owned;
6) voting rights arising from the shares for which the person transferred to third parties as security without losing voting rights resulting from those shares;

7) voting rights arising from the shares for which a person is entitled to obtain under a written contract that execution depends on only from that person. At the time of the taking of vote considered the date of conclusion of the contract;
8) voting rights arising from the suspension of shares to a person which it has passed on to another person as a performance guarantee. Where the security holder has announced a desire to use the voting rights arising from the discharge provision, the right to vote the shares transferred shall be considered security holders voting rights;
9) voting rights arising from any other persons indirectly acquired shares.
(6) if the qualifying holding wants to get a legal person, the Commission shall verify the details of the actual owners, until you get the information about the owners — natural persons. If such legal person of the capital securities are included in the stock exchange established in a Member State (regulated market), which is the Federation of the international stock exchange of the full member, the News provides only for those owners who in that legal person has a significant interest.
(7) the Commission shall, within three months from the date of this article, all the documents referred to in the second subparagraph, shall assess the compliance of the person concerned in the first, second and third subparagraphs to the requirements and, if it considers that the acquisition of a qualifying holding or the increase does not ensure the company financially stable, cautious and regulations according to management, the decision to ban to acquire or increase qualifying shareholdings in the company and immediately of the decision shall inform the person concerned.
(8) If a person wishing to obtain a substantial participation in society, is a company registered in a Member State or the parent undertaking of such company, or the person who controls the Corporation, registered in a Member State, the Commission, when assessing the person's compliance with the requirements of this law, shall consult with the management authority of the Member State concerned.
(9) if the qualifying holding acquired a personal impact on society or may pose a threat to society, financially stable, cautious and regulations according to management, the Commission should have the right to request to be stopped immediately following the impact, the company changed the composition of the Council or officials, or prohibit the person concerned to use all or part of its voting rights to vote.
(10) a Person who wishes to terminate the parent a decisive influence on the Commission licensed the company, reduce the amount of qualifying shareholdings in companies below 20, 33 or 50procent limit or terminate significant participation in society, before the disposal of the shares shall notify in writing to the Commission. The notice shall indicate the person's participation in society, the extent to which it will have after the reduction of participation.
8. article. The company's capital (1) the minimum initial capital of the company is the equivalent in euro of 125000 by Bank of Latvia rates.
(2) the initial capital shall consist of: 1) paid share capital (share capital), reduced by the value of the preference shares with a dividend accrual;
2) share premium;
3) reserves (excluding revaluation reserves);
4) previous years retained earnings or losses;
5) year current profit, if it is certified auditor's report on the existence of profit and its calculated, taking into account all the necessary provisions for impairment of assets, estimated tax payments, and dividends, and the Commission has agreed to the current year's profit for inclusion in the initial capital.
(3) If the management of the public funds in the amount of more than EUR 250 million equivalent in local currency at the rate of the Bank of Latvia, the public must be provided in the additional amount of own funds, the amount of which is 0.02 per cent of the amount by which the value of the resources management exceeds EUR 250 million equivalent in local currency at the rate of the Bank of Latvia.
(4) Notwithstanding the second paragraph of this article, the provisions of the company's initial capital and an additional amount does not exceed EUR 10 million equivalent in local currency at the rate of the Bank of Latvia.
(5) in determining the compliance with the capital requirements of this law, for the administration of the funds deemed: 1) managed by the open society Fund of funds, including funds that it has transferred management to another company, but not including the funds it has received from the management of other companies;
2) society closed investment funds managed funds, including funds that it has transferred management to another company, but not including the funds it has received from the management of other companies;
3) companies managed by private pension funds, the State funded pension scheme and individual client portfolios of financial instruments.
(6) Notwithstanding the requirements laid down in this article, the company's equity will never be less than 1) the minimum initial capital;
2) 25 percent from the previous year's regular full costs (costs that remain constant regardless of the volume of public business) totals.
(7) the company received authorization from the Commission, may provide up to 50 percent of the referred to in the third subparagraph of the additional amount in equity, if it benefits from the same amount of guarantees issued by Latvia: 1) or registered in a Member State of the credit institution, which received a license and is entitled to provide financial services in those countries;
2) in Latvia or registered in a Member State of the insurance company, which received a license and have the right to provide financial services in these countries.
(8) if the firm provides in article 5 of this law in the second and third subparagraphs in question it shall operate in and execute investment brokerage companies regulatory requirements and the rules on capital adequacy, exposure limits and consolidated supervision.
(9) the company's equity calculation methodology shall be governed by the rules of the Commission.
9. article. Requirements of Council members and public officials (1) the public officer must be a person who meets the following requirements: 1) it is sufficiently competent in the area will be responsible;
2) has a higher education and not less than three years of relevant professional experience;
3) it has a perfect reputation;
4 it is not deprived of the right to) do business.
(2) the company's Board must be a person who is competent in matters of financial management and meet the first part of paragraph 3 and 4.
(3) a Person must not be a member of the Council and of the public officials in the following cases: 1) is convicted of an intentional criminal offence;
2) has been convicted for an intentional criminal offence (even if the person is released from parole due to the Statute of limitations, pardon or amnesty);
3) it is called a criminally liable for intentional criminal offence (even if the criminal proceedings against the person but the person is not terminated, the rehabilitated);
4) it has provided incorrect information about yourself when submitting a document to the Commission in order to obtain a licence for the operation of the society or other action in the financial and capital markets;
5) it is assumed the Board or Council of the responsibilities in society or other financial institution, recognized as insolvent when the person concerned complied with those obligations, whether it is played or the members of the Council of the Board's duties to another company and his negligence or deliberately led these companies to insolvency or bankruptcy for the legislation.
(4) the examination of public officials and the reputation of the members of the Council, the Commission shall take into account the information provided in the notice of the persons, from previous jobs in the feedback received and other information about their previous professional experience.
10. article. Licence documents and news (1) to get the licence, the company shall submit to the Commission an application for the licence. The application shall be accompanied by documents of the company, shareholders, Board members and officials of the company's internal control system of the developed procedures and policies, as well as other documents referred to in this article.
(2) on the company and its shareholders are to be submitted to the Commission the following documents: 1) a document certifying the payment of the initial capital;
2) a list of shareholders and of shareholders: a) for natural persons – passport or other identity document copy of the page that contains the identification data of the person [first name, last name, year of birth and the date the personal code (if any)], b) for legal persons – firms, legal address, registration number and location. Foreign legal entities registered in the registration documents submitted copies of c) documents proving the shareholders (which is essential for participation in society) the financial resources and their origin, so they can invest in the company, d) details of the shareholders (which is essential for participation in society) owners (up to a natural person, which provides the message according to the "a" section of this point).
(3) the members of the Council and of the public officials to be submitted to the Commission the following documents and particulars:

1) statement that you fill in every Member of the Council of the society and each officer. The notification shall indicate the following information: (a) the business name and position) companies to which the person stands, b) name, surname, year of birth and the date the personal code (if any) and citizenship, c) education (degree), d), (e) skills) or have had a criminal record, f) or have been deprived of the right to carry out commercial activities, (g)) the last 10 previous jobs and a brief description of the job responsibilities;
2) the passport or other identity document copy of the page that contains the identification data of the person [first name, last name, year of birth and the date the personal code (if any)];
3) of formal education.
(4) the third part of this article, paragraph 1 of the statement of the accuracy of the information provided to certify a person for which the statement has been prepared, as well as the company's Chairman of the Board.
(5) the Commission should be presented to the public a list of the interested parties. List each person's name and surname, person code, education, position, which it acquired in the last five years, and to the relevant job description for the public and the parties concerned the provisions of contracts. Legal person indicates a company registration number and members of the administrative organ shall submit to the Commission, as well as last year's report.
(6) the company's internal control system to be submitted to the Commission the following documents: 1) description of the organisational structure with clearly identified and officers of the Council and powers, as well as clearly defined and distributed to the public unit and Unit Manager tasks. If the company plans to establish a branch, the Commission also affiliate organizational structure and responsibilities of the heads of the branches;
2) management information system;
3) the accounting policies and accounting principles of the Organization;
4) financial risk management policy;
5) information system protection rules, including the Fund's investment certificates of registry and other firms in the management of existing financial instruments accounting data base protection provisions;
6) internal audit system description, including the rules on the society and its staff examined the own-account transactions undertaken and their compliance with requirements for prevention of conflicts of interest;
7) unusual and suspicious financial transactions, a description of the identification procedure.
(7) For the planned activities of the society shall submit to the Commission at least for the next three years to develop and the public shareholders ' meeting approved the action plan, which reflects the company's expanded operations strategy (also indicate those services, which the company plans to provide additional core activities), financial projections (balance sheet, profit and loss statement, capital adequacy calculation, the estimated amount of fixed costs), market research description, and other information, giving a true and fair view of the company's planned action.
(8) the Commission has the right to require the company to clarify the documents and information submitted.
(9) pending a decision on the issue of the licence shall provide to the Commission of the change in the information or documents are amended, the company is obliged to immediately submit the new information to the Commission or the full text of the document with the amendments.
(10) the Commission consulted with Member States ' supervisory authorities before licences to the public if the public is: 1) Member State licensed brokerage company, an investment firm, a credit institution or an insurance undertaking subsidiary company;
2) on the company's subsidiary company, the subsidiary company is licensed in a Member State of the community, an investment brokerage firm, a credit institution or insurance company;
3) company, which is controlled by a person who controls the other corporation, licensed in a Member State of the investment brokerage firm, credit institution or insurance company.
11. article. License issue (1) the Commission's decision on the issue of the licence shall be adopted within three months after receiving all this statutory decision required documents prepared and presented according to the normative requirements.
(2) the Commission shall issue the license within 10 days from the date of the decision granting the license. The licence shall be issued, after receiving the document certifying payment of the State fees.
(3) the Commission shall not issue a licence if: 1) the setting up of the company, has not been complied with this Act and other legislation;
2) Council members and officials do not comply with the requirements set out in this Act;
3) capital does not meet the requirements set out in this Act;
4) close relations with third parties or may pose a threat to the financial stability or prejudice the right of the Commission to carry out this statutory supervisory functions;
5) foreign laws and other regulations that apply to persons who have a close relationship with the society, prejudice the right of the Commission to carry out this statutory supervisory functions;
6) it is not possible to ascertain the identity, reputation and stability of the financial situation, which is essential for participation in society;
7), the Commission finds that the financial resources invested in the capital of the company, obtained unusual or suspicious financial transactions or not documented proven this financial legal mining.
(4) If the Commission adopts the decision on the refusal to issue a licence, licence applications may be submitted after the refusal specified deficiencies.
12. article. License management services specified Exchange (1) If a company wants to make it in the licence issued by the Government services would be supplemented with new data, or wish to opt out of some of the Government services specified in the licence, it shall present to the Commission appropriate submission.
(2) where the company wishes to launch a new management service, it simultaneously with the submission to the Commission: 1) supplements the action plan;
2) amendments to the internal control systems descriptions, which are necessary to ensure the provision of the service in accordance with the requirements of the law.
(3) the decision of the public service administration in the licence, the Commission accepts the change within 15 days after all this law that according to legislation requirements and design documents prepared.
(4) the State fee for the licence management service change is free.
13. article. Public rights, duties and liability (1) the licences issued to it by the public during the follow and comply with the following requirements: 1) ensure that its capital to comply with this law and the regulations issued by the Commission of these requirements as well as ensuring the respect of the other firm regulatory requirements;
2) ensure that its Chairman of the Board and at least one Board Member, as well as the Fund Manager's investment matters a competent person;
3) shall ensure that its activities comply with the internal control system designed to work properly, as well as the order in which the members of the Council and of the public employees can invest in the public domain in existing investment funds and receive government services in the community;
4) ensure that its internal control system laid down in the rules would be impossible to reconstruct the Fund transactions undertaken by their origin, the parties to the transaction, the nature of the transaction, the time and place, as well as to monitor compliance with the Fund's investment fund prospectus, regulations and regulatory requirements of this law;
5) provides the business justification document storage in the EU, as well as the statutory requirements relating to the justification of document filling and storage.
(2) If a company gives this law article 5, second and third subparagraphs of these management services, so in addition to the first part of this article the requirements follow and comply with the following requirements: 1) ensures that the divorced are kept posted and listed in the same society and its customers, including the administration of existing investment funds, private pension funds and the State funded pension scheme in the financial instruments and monetary funds;
2) before the commencement of the provision of the service and the client a written contract for the provision of the service;
3) before the conclusion of the service, as well as throughout the duration of the contract, to provide customers with sufficient information to allow the assessment of the nature of the service provided and the related financial risks;
4) prior to the conclusion of the contract shall inform the customer of those disputes laid down in the treaty event, which will be dealt with, and out-of-court settlement of the dispute;
5) shall participate in the investor protection system according to the laws governing it.
(3) the company shall, to the extent necessary for the customer and for protection, according to the nature of the service provided to the customer and the amount requested from the customer information about: 1) the client's experience and knowledge of the provision of the service in the course of transactions;

2) objectives that client wants to achieve with the relevant transactions;
3) customer's financial situation.
(4) if the customer refuses to give this article the information referred to in the third subparagraph, as well as inform the public of any changes in the information provided, the company shall not be liable to the customer for any consequences that arise because society does not have this information.
(5) the public, providing administrative services, is obliged to act as a caring and careful owner and only fund investors and other clients of the public interest.
(6) the Society for the administration of the Fund activities related to the use of property belonging to the fund shares (the shares) to vote, does not require the consent of investors of the Fund.
(7) the undertaking is bound to raise funds in the name of investor claims against the custodian or any third party if it is clear from the circumstances. However, this does not restrict the rights of investors in the Fund to bring such claims on their own behalf.
(8) the company shall be responsible for the damages caused by the investors of the fund company officials or authorised persons, in violation of this law, the prospectus of the Fund or the Fund's Management Charter, rules, abusing those powers or negligently performing their duties.
(9) the public is obliged within 10 days from the date of the amendment in writing to inform the Commission of any amendments to the custody of the public and stakeholders, as well as any amendments and supplements to the documents submitted to the Commission and information.
(10) the members of the Council or public officers in the event of that person's post, where the Commission, within 10 days of receipt of the application and the documents set out in this law of ievēlētaj (designated) persons, no reasoned objections relating to compliance with the requirements of the law.
14. article. Conflict of interest (1) the company shall ensure that the internal control system that minimizes the possibility of conflicts of interest arise between: 1) company and its customers or the public administration existing funds;
2) public domain existing funds;
3) public clients;
4) public clients and public administration existing funds.
(2) The conflict of interest within the meaning of this law, be considered as a situation where the authorised person of the public at the same time make decisions about investments in the public interest or in the interest of its own and fund or client in the investment portfolio, which could adversely affect the Fund's investors or other clients of the public interest with respect to the same kind of investments or investments in one and the same object.
(3) the company shall ensure that the same public employees will perform only one of the following duties: 1) financial instruments belonging to the public administration, as well as the related tasks or release;
2 the Fund investment and client) (also private pension funds and the State funded pension scheme) the individual management of financial instruments, as well as the related tasks or release;
3) transactions in financial instruments to be posted.
(4) the public is not entitled to invest their funds in other societies, as well as a managed fund itself purchase investment certificates.
(5) in the fourth paragraph of this article, the restrictions that apply to the same company managed fund investment certificates acquisition, not apply to cases where a company takes over other companies created to manage the Fund. In this case, within six months from the date of completion of the takeover of the company must take appropriate measures to meet its future action in the fourth paragraph of this article, those rules.
(6) where the company manages customers ' individual portfolios of financial instruments, the private pension funds has created a pension plan, it should not show this portfolio funds to invest public funds in administration, unless the contract concluded with the customer for the provision of such a mandate is not clearly assigned.
15. article. Fund management service delegation (1) the company may transfer the contract the right to provide certain items of the fund administration services (hereinafter fund government services) to another person with the appropriate qualifications and experience in the provision of the services.
(2) the Fund's investment management company may transfer only to another company.
(3) the investment management of the Fund should not be put to the public, which is custodian of the interested party, company party or any other person whose interests may be in conflict with the public or the interests of the investors in the Fund.
(4) Before the transfer of the Fund management services to another person the company shall submit to the Commission a reasoned submission. The application shall be accompanied by the transfer of the Fund management services agreement. The agreement shall contain provisions for the public and the cooperation of the service provider for the duration of the contract, as well as such companies the right to: 1) at any time in the service provider to the instructions in matters relating to the provision of the service;
2) request to terminate the contract immediately.
(5) the company shall submit to the Commission all the statutory Commission to submit amendments to the document, if such amendments in connection with the transfer of the management of the service is done.
(6) a Person who, in accordance with the Treaty are delegated right to provide fund management services, may initiate service provision, where the Commission, within 20 days from the date of receipt of the contract is not raised reasoned objections against it.
(7) the Commission does not allow to transfer management service of the Fund, if: 1) transfer of the service interferes with the public to fully manage the Fund and may interfere with the interests of investors in the Fund;
2) hinders the transfer of the Service Commission to carry out the monitoring of the activities of the society;
3) service contract of transfer does not meet the requirements laid down in this law and do not provide a clear picture of the society and the cooperation of the service provider for the duration of the contract;
4) fund prospectus makes no mention of those services that the company wants to transfer to another person;
5 transfer of public service) no longer provides any of the services provided in the administration of the Fund.
(8) the company shall ensure that not later than 10 days before the delegated administration service launched to provide another person, fund investors are informed of the Fund's administrative rules or the fund prospectus. Investors of the fund public notification indicates the type of service and delegated this law, article 57 of part of the information referred to in paragraph 22 of the service provider.
(9) the management service delegation to another person does not relieve the company of this statutory responsibility for the administration of the Fund.
16. article. The management of the fund transfer to another company (1) the company may transfer the administration of the Fund, created another company authorized by the Commission.
(2) to receive the Commission's authorization to transfer the Fund management company shall submit to the Commission a reasoned submission. To be added to the following application documents: 1) transfer of the Fund contract;
2) fund prospectus and regulatory rules, as well as a custodian, treaty or existing custodian contract amendments that need to be done in connection with the public.
(3) the Commission month after all the documents referred to in this article shall decide on receiving permission to transfer the management of the Fund to another company if the following conditions are met: 1 the transfer of Fund Administration) do not touch the interests of fund investors;
2 management of the fund transfer) documents submitted are prepared according to the requirements set out in this Act;
3) society, which is transferred to the administration of the Fund complies with the requirements laid down in this Act in the company's capital.
(4) the company shall manage the Fund which, after receiving the decision from the administration of the Fund in accordance with the procedure laid down in the Statute shall immediately inform all investors of the Fund for the public, as well as published in the newspaper "Gazette" and yet in at least one daily newspaper in the announcement of the Fund's transfer to another company. The notification shall specify the business name, registration number and location of the Board.
(5) the agreement on the administration of the Fund transfers to another company enter into force not earlier than one month after the fourth paragraph of this article, the publication of this notice. The amendments to the fund prospectus, fund administration and custody agreement shall enter into force simultaneously with the Treaty on the transfer of the administration of the Fund.
(6) as soon as the agreement on the transfer of the administration of the Fund shall enter into force, all with the investment funds, the rights and obligations relating to a new public.
Article 17. The Fund management rights to custody (1) transition if the company's right to manage the Fund expires, the right to manage the Fund to move the Fund custodian, with the exception of this law, article 16 laid down in the case.
(2) the Custodian shall, without delay, submit for publication in the newspaper "Gazette" and yet in at least one daily newspaper in the announcement of the Fund management rights to the transition. The notification shall specify: 1) the company that manages the investment fund was;
2) the name of the investment fund;
3) custodian firm and location of the Board.

(3) companies that manage investment funds have ended differently, not with the administration of the fund transfer to another company, the custodian shall, without delay, of all the Fund's governance documents.
(4) a custodian that transferred the management of investment funds is all the public rights, except the right to issue to its existing fund management units and take the certificate atpakaļpirkšan.
(5) within three months from the Fund management rights to the date of transition shall fund custodian management rights to another company. The Commission may extend the period to six months.
(6) the Fund management rights to transfer to another company may be authorized by the Commission.
(7) If in the fifth subparagraph of this article within a custodian shall not transfer the Fund management rights to another company, the custodian shall carry out liquidation of the Fund.
18. article. The termination of the Fund management rights in the company's right to manage the investment fund shall expire: 1) to the Fund management rights to another company;
2) along with the withdrawal of the licence;
3) with a closed fund investors ' decision of the general meeting of the company;
4) along with the completion of the liquidation of the Fund by the company itself;
5) the moment when the Commission shall appoint the liquidators of the Fund, in accordance with article 35 of this law in the sixth.
19. article. Reorganization and liquidation of the company (1) the company may reorganize or liquidate authorized by the Commission.
(2) the company reorganize and eliminate under commercial law, referred to in this article shall be subject to the additional rules.
(3) the society may only add to another company.
(4) the company's fusion with another company or another company is not permitted.
(5) the Division is allowed only if at least one of the companies is in the public iegūstošaj.
(6) the company may not start your winding up, before they are not over the right to manage all its administration of existing investment funds and it is not passed by all obligations to their customers. "
8. Article 23: adding to the first part of paragraph 4 by the following: "4) list of employees the custodian who will be responsible for a custodian functions (specify employee name, surname, personal code, and the last three years of work experience).";
to supplement the article with the fourth paragraph as follows: "(4) the Commission does not keep track of the Fund in the following cases: 1) the own funds of the company does not meet the requirements set out in this Act;
2) Fund documents submitted for registration does not comply with the requirements set out in this Act;
3) a custodian who will be responsible for a custodian's duties, not the experience to ensure a qualified custodian's duties;
4 the Fund's administrative rules) or in the prospectus, it is intended that the Fund's investment certificates may not be put into public circulation in Latvia. "
9. Article 27: replace the words "the sixth part of the Auditors of the Fund" with the words "auditor" of the Fund;
replace the eleventh paragraph, the words "Auditors" with the word "auditor".
10. in article 28: turn off the second sentence of the first subparagraph;
to supplement the article with the fifth, sixth and seventh subparagraph by the following: "(5) if the Charter is amended, the company shall submit to the Commission an application for the registration of the amendments to the regulations. Application: 1) to be added to the relevant public authorities of the decision on the approval of amendments to the Statute;
2 amendments to the staff regulations) (two copies);
3 the text of the Statute), which contains the amendment. The full text of the Charter, the company shall submit to the Commission, only electronically, by sending them to the Commission's electronic mail address, or together with the documents submitted to the technical medium (diskette or CD).
(6) the Commission shall examine the amendments and 15dien take a decision on the amendment of registration if they comply with the requirements of this Act and not inconsistent with the Fund's legitimate interests of investors.
(7) the amendments shall enter into force not earlier than 10 days after their registration in the Commission or in the other period prescribed by the Commission, which may not be longer than three months from the date of registration of the amendment and is determined in the light of the amendments to the regulations of the Fund and the interests of investors. "
11. Article 33: make an eighth part of paragraph 4 by the following: ' 4) to grant loans. That prohibition does not apply to active reverse repurchase transactions are allowed to take, noting that the deal involved financial instrument is suitable for article 66 of this law establishes limitations. ";
make a tenth as follows: "(10) the company may raise loans to fund enclosed invoice, if these loans are taken out for a period of up to three months and the total does not exceed 25procent of the closed Fund values. If a closed fund prospectus is provided not less than 50 percent of closed funds to invest in real estate, the company may raise loans to fund enclosed invoice without time limit and their total amount may not exceed 80procent of the value of the Fund closed. ";
to supplement the article with the fourteenth and fifteenth part as follows: "(14) to the shareholders, which is essential for participation in society, make investment companies established in the Trust Fund, if the following conditions are fulfilled: 1) shareholder investing Fund or fund exited without violating other fund investors ' legitimate interests;
2) investment fund does not exceed ten million dollars.
(15) if the shareholder who has a significant interest in, the company has invested in funds according to this article the 14th part, fund statements, information about such investment. "
12. Express article 39, second subparagraph by the following: "(2) the liquidator shall, within 10 days of completion of the notification to the Commission of the termination of the liquidation and dissolution of the expiry review."
13. Article 40: put the name of the article as follows: "article 40. Custodian's general rules ";
make the second paragraph as follows: "(2) a custodian may be a credit institution to which the Commission has issued a license for the operation of the credit institution and the laws which established has launched the provision of investment services (including the keeping of financial instruments).";
to make the fourth subparagraph by the following: "(4) a custodian may invest their funds in the Fund's investment certificates, which the custodian is, just in case, if the custodian is the host of the shareholders of the Fund with the essential participation and compliance with this law, article 33 of part of the fourteenth and fifteenth."
14. Express article 41, the first paragraph by the following: "(1) the company shall open a separate account for each custodian of its administration to the existing Fund. The identity of the Fund, by opening an account at the custodian, is considered the Foundation name and the registration number assigned by the Commission. "
15. Article 51: make the first paragraph by the following: "(1) publicly traded units takes place in accordance with the financial instruments market law, in so far as this law provides otherwise. ';
to supplement the article with the fifth, sixth and seventh subparagraph by the following: "(5) the open Fund units are treated as public securities in circulation, even if they are not admitted to trading on a regulated market.
(6) a closed fund investment certificates are considered public securities in circulation only after they are admitted to trading on a regulated market.
(7) investment certificates include a regulated market, the fund prospectus and regulations comparable to the prospectus prepared in accordance with the law on the financial instruments market. "
16. Express and article 56.57 as follows: "article 56. The prospectus of the Fund and its amendments (1) the emission units must not be started without a prospectus of the Fund approved by the society. The open society Fund to develop and approve the two versions of the prospectus of the Fund, the full and abbreviated prospectus of the Fund (hereinafter fund prospectus).
(2) the fund prospectus provides information needed by investors to make informed decisions regarding the proposed and the potential risks associated with such investment.
(3) fund prospectus provides this law, the information referred to in article 57. Fund prospectus so there is no need to repeat information contained in the Fund's Management Charter and is equivalent to this law, the information referred to in article 57.
(4) the fund prospectus shall enter into force at the moment when the Fund is registered with the Commission.
(5) where the company wishes to amend the information, which is provided in accordance with article 57 of the law of the third part 1., 2., 3., 4., 5., 7., 8., 9, 11, 12, 13, 14, 15 and 16, before the amendment, the company shall submit to the Commission: 1) the respective governing bodies of public decision on the approval of amendments to the prospectus of the Fund;
2) amendments to the prospectus of the Fund (in duplicate);
3) fund prospectus, which includes the amendments. The full text of the fund prospectus company shall submit to the Commission by electronic means only, sending them to the Commission's electronic mail address, or together with the documents submitted to the technical medium (diskette or CD).

(6) the Commission shall examine the reports submitted by the fund prospectus amendment within 15 days and take a decision on the amendment of registration if they comply with the requirements of this Act and not in conflict with the legitimate interests of investors.
(7) if the fund prospectus required for amendments, taking into account changes in the company's capital, in the composition of the Council or officials or other changes in the company or Fund, which under the law is consistent with the Commission, after consulting the Commission, the changes made by the amendments to the fund prospectus without prior to registration in the Commission and in accordance with the fifth subparagraph of article 3 shall be submitted to the Commission full to the fund prospectus.
(8) the company shall, after the fund prospectus for registration of amendments to fund management Commission in accordance with the procedure laid down in the Statute shall immediately inform the investors of the Fund about the fund prospectus amendment and their entry into force.
(9) in the fifth subparagraph of this article, the fund prospectus referred amendments shall enter into force one month after the registration in the Commission.
(10) the seventh subparagraph of this article, the fund prospectus referred to in the amendments shall enter into force after their approval by the governing bodies of the company.
57. article. Fund prospectus contains (1) a fund prospectus has a cover page. To be included on the cover page the following information: 1 the type and name of the Fund), as well as a reference to the country in which the Fund is established (registered);
2) Fund company and registered office;
3) Fund custodian firm;
the Fund's investment certificate 4) retailer and distribution company site addresses;
5) Fund name the auditor or firm;
6) date of incorporation of the Fund and activities (if any);
7) mark for registration with the Commission;
8) mark on the fund prospectus amendments and their date of entry into force;
9) its address, where you can get the fund prospectus, the Fund's Management Charter (if it is not attached to the fund prospectus), the Fund's annual or half-yearly reports, as well as details of the value of the Fund and the investment certificate sales and atpakaļpirkšan price.
(2) fund prospectus contains a table of contents and terms used and an explanation of abbreviations.
(3) the prospectus of the Fund, in the full version of this part in the order above to include at least the following information: 1 the purpose of the Foundation-laying), also a financial purpose (for example, capital gains or return on investment), investment policy (for example, the types of investment object specialisation in certain geographical areas or industrial sectors), as well as 65 of this law the information identified in article;
2) the Fund's risk profile description and investment-related risk analysis;
3) Fund investment limits and Fund Administration-use practices or technical description, also to fund the expense of borrowing to be principles and procedures;
4) this statutory fund investor brief explanation of the law, as well as investment certificates of the rights attaching a brief description;
5) profile of the typical investor (investor, the Fund);
6 details of fund investors) applicable to the payment of taxes and duties and the procedure;
7) for the sale of the units and atpakaļpirkšan the Commission charged the maximum amount (as a percentage of the Fund's share value);
8) public, custody and fund other persons referred to in the prospectus of the Fund's assets, the maximum level of compensation to be paid (total and for each person individually the amount of remuneration payable) and the procedure for calculating the payment of remuneration. The maximum amount of remuneration is indicated as a percentage of the average value of the Fund's assets;
9) other possible expenses and payments, as well as their cover. With a separate indication of those payments that will be made to investors in the Fund, and those that will take from the Fund;
10 details of the auditor of the Fund), the name and the number of the certificate or certified auditor commercial companies company, registration number and license number;
11) sales units, atpakaļpirkšan and take-back rules and procedures;
12) the circumstances in which you can stop atpakaļpirkšan and the units take-back;
13) units for sales and prices atpakaļpirkšan the calculation method and frequency, as well as details on where and how often these prices are passed on to the public;
14) the Fund value determination principles and rules;
15) the rules on the calculation of the income of the Fund, use and distribution of the Fund's investors;
16) of the reporting year the Foundation begin and end;
17) company, the registration date and number, registered office and, where the company has established a branch, its location in the address;
18) society registered and paid-up capital;
19) and Council members of the public officer name and position in society, as well as their duties outside the company if they have a role in society;
20) other companies managed fund, the private pension plan, pension fund or State funded pension scheme investment plan name and brief description;
21) custodian firm, registration date and number, the legal address and location address;
22) consultant, as well as other service providers in the name or business name, registration number and location address, where the company has concluded the contract for the provision of services and in the management of the Fund in accordance with this contract service provider remuneration is paid from the Fund. Short the service provider's core business and it service agreement, which is important to investors in the Fund;
23 if a company plans) from the fund administration services to transfer to a third party, — the reference to these services, and a description in the services may be transferred;
24) past performance of the Fund and financial indicators in a comparative table for the past three years (prepared in accordance with the provisions of the report of the Fund). For that information to be included notice that these figures are not down (do not affect) the future activities of the Fund. This information can be included in the prospectus of the Fund, or add to it.
(4) the simplified fund prospectus the information regarding possible version in plain and understandable to a typical fund investor. Short version of the prospectus of the Fund in an abbreviated form included in part three of this article 1, 2, 5, 6, 7, 11, 12, 13 and 15 above, as well as additional information shall include the following: 1) after the announcement that investor's request, before it submits an application for fund investment certificates purchase and referred to as the free investor fund prospectus is issued a full version of the Foundation's annual and half-yearly report;
2 the name of the institution);
3 indication of the company contact person) (responsible unit) with which to fund investor can contact to get additional explanatory information on the activities of the Fund. Specifies the persons name and job title or company name of the relevant Department, contact information (phone number or other means of communication of the properties) and working time.
(5) a closed fund prospectus in addition indicate: 1 the Fund's investment certificate) issue price, volume and time;
2) Fund Investor the right to request the convening of the investors and to participate in it;
3) investors of general competence and decision-making procedures.
(6) the annex to the prospectus of the Fund, the Fund added to the last annual report or semi-annual report, if it is approved at the last annual report.
(7) the provisions of the prospectus of the Fund shall become binding on the public and investor relations, as an investor in the fund prospectus and regulatory rules laid down in the Fund has acquired the certificate of investment. "
17. Replace article 60 in the third paragraph, the words "of the European Union or European economic area Member State, the Republic of Estonia, the Republic of Lithuania or registered in the Member State" by the words "registered".
18. Replace article 62, first paragraph, point 1, second paragraph, 1, 2 and 4, article 63, first paragraph, article 64, in the first paragraph of article 66 of the second subparagraph of paragraph 1, the fourth subparagraph of article 66 and article 68, first paragraph, the words "the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the European Union or European economic area Member State ' (the fold) with the words" Latvia, other Member State ' (the fold).
19. off 62. the second paragraph of article 1 and article 66 of the second subparagraph of paragraph 3, the words "of the European Union or the European economic space".
20. Article 66 of the Present sixth as follows: "(6) the Fund's deposits with one credit institution may not exceed 20 percent of the Fund's assets. This restriction does not apply to claims against the custodian upon request. "
21. off the fifth subparagraph of article 68 of the second sentence.
22. Article 74: turn off in the first paragraph, the words "(hereinafter referred to as the auditor of the Foundation)";
replace the second and third paragraph, the words "auditor of the Fund" (fold) with the words "the Fund's auditor" (fold).
23. Replace article 75 second, third and fourth paragraph, the words "auditor of the Fund" with the words "auditor of the Fund".
24. the supplement to Chapter VII and article 75.1 75.2 by the following: ' article 75.1. General rules for public reports

(1) the company shall maintain its accounting and prepares the annual report and overview of the other periods in accordance with the law "on accounting", this law and the regulations issued under this law.
(2) the company for each financial year, prepare a report. The report shall include a balance sheet, off-balance-sheet items, profit and loss statement, statement of changes in equity and reserves, cash flow statement and the notes, as well as the management report of the management company.
(3) the Commission, in accordance with this law and international financial reporting standards determined by the society to be included in the annual report items and report items of the evaluation methodology.
(4) where necessary for the supervisory functions, the Commission should have the right to request from the company's consolidated annual report and the report on the other periods. The Commission determines that the reporting and submission procedures.
Article 75.2. Company's annual report, check and publish (1) annual accounts must give a true and fair view of the company's assets and liabilities, the financial position, performance and cash flow. If, under this Act, the annual accounts drawn up does not give a true and fair view of the company, to be included in the annex of the annual report for additional information.
(2) the examination of the annual report of a person who is entitled under the law to provide audit services (hereinafter referred to as the sworn auditor). The public trading of its sworn auditor addressed the Board's receipt of the report, but no later than three months after the end of the accounting year, shall submit to the Commission a copy of the report.
(3) the shareholders ' meeting has the power to approve the annual report by sworn auditor's report.
(4) the company shall submit to the Commission the annual report of the company, the shareholders ' meeting for the approval of the annual report and Auditor's report sworn in 10 days after the shareholders ' meeting which approved the annual report, but no later than three months after the end of the reporting year.
(5) following the submission of the annual report to the Commission the full or abbreviated the company of the annual accounts and sworn auditor's report shall be published in at least one daily newspaper, which is distributed all over the territory of Latvia, no later than the year following the reporting year on May 1, as well as the inserts that information into your website on the internet (if any).
(6) if the company's annual report is published in full in the relevant newspaper clearly indicates that it is a short annual report, as well as where you can get acquainted with the full annual report. Publish a short annual report, accompanied by a sworn auditor's opinion. "
25. Chapter VIII be expressed by the following: "chapter VIII. Regulatory freedom to provide services article 76. Licensed companies in Latvia to provide government services in a Member State (1) a licensed company in Latvia is entitled to give the Member State only the administration services that are authorized to provide it.
(2) the licensed company in Latvia is entitled to initiate a regulatory provision of a Member State in accordance with the procedure laid down in this article, without opening the branch or the branch opening.
(3) where the company wishes to launch managed services in a Member State, it shall submit an application to the Commission. The application shall specify: 1) regulatory services which are intended to provide Member State;
2) the Member State in which the intended to provide regulatory services;
3) the manner in which intended to provide regulatory services (without opening the branch or the branch opening).
(4) a company which wishes to initiate a regulatory provision of a service in one of the Member States, opening the branch, the application indicates the address of the branch and this law, article 10, third paragraph down the information on the Branch Manager. The application shall be accompanied by documents which give a true and fair view of the planned activities of the branch, the services to be procured, the branch structure and organisation of work.
(5) the Commission shall examine the application for the initiation of public services in the Member State and of its decision in writing inform the management authority of the Member State concerned and the relevant public within 30 days after all necessary according to the requirements of the laws and the documents received.
(6) while this article the decision referred to in the fifth subparagraph, the Commission shall send the Member State concerned information on the supervisory institution of the investor protection system in Latvia and the maximum amount of the refund.
(7) the company, in writing, inform the Commission and the management authority of the Member State concerned for amendment of this article, the third and fourth in the information set out in part a, 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 shall examine the seventh part of this article in specific documents and of their decision in writing inform the management authority of the Member State concerned and the public within 30 days from the date of receipt of documents.
77. article. State licensed companies to provide government services in Latvia (1) Member State licensed company in Latvia have the right to provide only such regulatory services requiring the company authorised in its home country by opening a branch or subsidiary in Latvia without opening.
(2) the Member State of the company's licensed affiliate may start only after Latvia: 1) the Commission has received from the company a management authority of the country of origin of which include: a) confirmation that the relevant public has of the existing license management services company in the country of origin, (b)) the action programme containing government services, which the company intends to provide Latvia, c) branch and the organisational structure, d) Branch Manager's name , citizenship, social security number (if any) or birth year and date, e) information about investor protection system, which is a member of the public concerned, f) a management authority of the State of origin of the written assurances that its internal checks before launch time will inform the Commission of the checks, the company's subsidiaries in Latvia and enable Commission representatives to participate in these checks, as well as after the completion of inspection, shall immediately submit a report to the Commission on the results of the inspection;
2) the Commission has informed the public of the management authority of the State of origin that is ready to launch a public supervision of the branch, or 60 days have elapsed after the date when the Commission received from the public in the country of origin of this part of the management authority referred to in paragraph 1 of the notice.
(3) Member State licensed public is entitled to launch managed services without having to open a branch in Latvia, where the Commission has received from the company a management authority of the country of origin of the statement contained in the second paragraph of this article 1, point "a", "b" and "e" referred to in the information.
(4) If a Member State licensed company in accordance with the procedure laid down in this article is launched to provide government services in Latvia, they must notify the Commission of any planned change in the information provided pursuant to the second subparagraph of paragraph 1, "b", "c" and "d" section, at least 30 days before the change.
(5) Member State licensed company which launched the provision of government services in Latvia in accordance with the procedure laid down in this article, shall prepare and submit to the Commission in accordance with the procedure laid down by the Commission for the exercise of its functions of monitoring and statistical data collection for necessary information and reports on activities of the society in Latvia.
(6) the Member State licensed company which in accordance with the procedure laid down in this article is launched to provide government services in the publicly traded shares of the funds it manages, may not take account of this law, the procedure laid down in article 60, if it fulfils the following requirements: 1) entering part of the sale, the Fund shall publish a notice in accordance with article 59 of this law;
2) provides to investors in Latvia would be informed about the changes in time and public funds;
3) provides that the settlement of the sale of the Fund and atpakaļpirkšan are run;
4) at the request of the investors shall be issued free of charge to the fund prospectus and the Fund management regulations of Latvian language. "
26. To supplement the law with chapters IX and X of the following: "chapter IX. Article 78 of the supervision. Monitoring the General provisions (1) the Commission is responsible for the licensed firms, as well as to monitor the activities of the custodian in accordance with this law, the law of credit institutions, financial and capital market Commission, the law and regulations governing the financial instrument markets.
(2) for the purpose of surveillance is to make sure the Foundation and the Community Foundation and is complying with this Act and the regulations, issued in accordance with this law, and to protect the interests of investors.
(3) in the cases prescribed in this Act, the Commission shall issue administrative acts. The order in which the Commission manages administrative provisions laid down in the relevant legislation.
(4) the administrative acts issued by the Commission, the rule of law or actual action of the Commission can be challenged under the General rules governing administrative proceedings, if this law provides otherwise.

(5) the administrative acts issued by the Commission's appeals court, which is a limited company or a custodian or public officials are prohibited from carrying out its duties, or is cancelled licence to the public, does not suspend the execution of the administrative act.
Article 79. Company's internal review (1) the Commission shall have the right to make public an internal check.
(2) the obligations of the company is to allow persons authorised by the Commission, which conducted an internal examination of the public free to acquaint himself with all the documents and information concerning the activities and administration of the Fund.
(3) the Commission has the right to take custody of the internal review of the activities related to the Fund.
(4) If the examiner at the time of the test detects irregularities in the operation of the public, he has the right to remove temporarily the relevant documents about it in drawing up legislation.
(5) the examiner shall have the right to make extracts from documents on the company's invoice to request copies of documents, certified copies of documents or transcripts.
(6) the results of the inspection, the Commission shall draw up a statement and introduces the public to the Board.
80. article. To the right of the Commission to obtain the information the Commission has the following rights: 1) in writing to request and receive from the company, the Custodian Bank, the commercial register of Latvia's authorities, public officials, but the company's liquidation or insolvency case — also from the liquidators or administrators information about society and the activities of the Fund;
2) require in writing this article, the persons referred to in paragraph 1 shall be presented in the documents at their disposal for the society and the Foundation.
81. article. To the right of the Commission to request the governing body to convene meetings of the Commission shall have the right to: 1) request, to be convened in a closed Fund general meeting of investors, the company's Board meeting or general meeting, first specifying the agenda;
2) send your representative who shall have the right to express their views and submit proposals to the general meeting of the fund investors closed, public Board meeting or general meeting convened in accordance with paragraph 1 of this article.
Article 82. Restrictions on the right to deal with bank accounts (1) if there is a violation of the laws and regulations of the Fund Administration, fund prospectus or a custodian, the provisions of the Treaty, the Commission has the right to obtain information from credit institutions and investment brokerage firms for the company or the Fund's cash flow and current account balances and given written orders to banks for up to 15 days to limit the public's right to dispose of the company or fund accounts.
(2) the banks referred to in the first subparagraph must fulfil orders immediately after receiving them.
(3) the costs of the account to which the order to restrict the public's right to act with them, are carried out only with the permission of the Commission.
(4) in the first subparagraph Before the expiry of the period referred to in the account on which the order to restrict the rights of the public, may be exempted from the restrictions, subject to authorisation by the Commission.
83. article. License renewal and issuance of duplicate (1) If a company changes, re-register the Commission license.
(2) the company's application for renewal of a licence shall be submitted to the Commission not later than seven days after the registration in the commercial register of the company.
(3) the Commission should re-register your license no later than seven days after receipt of the application.
(4) where the licence has been lost, the company shall, without delay, submit to the Commission an application for duplicate license.
(5) the Commission shall issue a duplicate of the licence not later than seven days after receipt of the application.
84. article. Withdrawal of license (1) the Commission may by a reasoned decision to revoke the license issued to the public in the following cases: 1) has provided the Commission with the public or publicly disseminated false statements;
2) submitted amendments to the documents submitted to the Commission;
3) company, its shareholders, members or officers of the Council does not meet the requirements of this law;
4) capital does not meet the requirements of this law;
5) society regularly does not follow this law and other legislative requirements or systematically violates the fund prospectus or fund management regulations;
6) company is contrary to the interests of fund investors;
7) within 12 months after the licence is not launched this law allowed;
8) company ended after a court ruling;
9) the company declared insolvent;
10) society activities and terminated shall be submitted to the Commission an application for the withdrawal of the licence;
11) company is added to another company.
(2) if the Commission finds the first part 1., 2., 3., 4., 5., 6., or breach referred to in paragraph 7, it conveys to the public warnings or impose this law provided for in article 87 of the fine and shall determine the period within which the public must prevent the alleged infringement. At the end of the term the company is obliged to submit a report to the Commission on the measures taken and their results.
(3) if it is not corrected within the time limit set by the Commission any irregularity, the Commission shall decide on the withdrawal of the licence to the public.
(4) the decision on the withdrawal of the licence, public warning or the imposition of fines and deadlines for the correction of irregularities the Commission determination in writing to the company within three days from the date of the decision.
(5) on the withdrawal of the licence in Latvia such licensed company whose affiliate operating in the territory of a Member State or which provides management services in a Member State without the opening of the branch, the Commission shall immediately inform the management authority of the Member State concerned.
(6) the Commission shall exercise supervision of the company until the company has fully passed the obligations to the fund investors and others to its customers.
85. article. The monitoring of licensed companies in Latvia, which provides management services in a Member State (1) the Commission shall inform the management authority of the Member State concerned before the internal inspection of the licensed companies in Latvia branch, which in the territory of that Member State shall provide the administrative services.
(2) a management authority of the Member State, on its own initiative or at the request of the Commission is entitled to make the internal inspection of the licensed companies branch, which operates in the territory of the Member State concerned.
86. article. The Member State in the supervision of licensed company that provides management services in Latvia (1) if the Commission finds that the Member State of which the company licensed pursuant to the provisions of this law, has opened a branch or the provision of government services launched in Latvia, do not comply with or violates this law and in accordance with the regulations issued, it requires the public concerned to prevent any irregularities.
(2) If the first paragraph of this article, a Member State licensed undertaking does not comply with the instructions of the Commission, the Commission shall inform the public of the management authority of the country of origin of the alleged infringements and asked to take the necessary measures to ensure that the public concerned the shortcomings noted irregularities, as well as asking the public to inform the Commission of the management authority of the State of origin of the measures taken.
(3) where, notwithstanding the first and second subparagraphs, the measures laid down in the Member State licensed company continues to violate this law and in accordance with the regulations issued by the Commission after the company's supervisory authority of the country of origin information may take the measures provided for in this Act for the provision of supervision to prevent future infringements of the company, or to apply the penalties provided for in this Act. The Commission has the right to prohibit further public concerned to take any action in Latvia. The Rights Commission is also where the company's management authority of the country of origin for objective reasons cannot perform the second part of this article, these measures or in Latvia it is not possible to implement these measures.
(4) in the first, second and third subparagraphs requirements do not prevent the Commission take measures to eliminate the existing population in Latvia, the legitimate interests of protective legislation. This measures the Commission is entitled to prohibit the public concerned to continue the provision of government services in Latvia to the prevention of abuse.
(5) If the Commission uses in the second, third and fourth subparagraph, rights and take measures which provide for Member State public licensed to apply punishments or restrict its activities in Latvia, the Commission adequately justify the need for such measures and to immediately inform the public about them. Public decisions taken by the Commission, has the right to appeal against Latvia as required by applicable law.
(6) in exceptional cases, the Commission is entitled, without regard to the first, second and third part of the arrangements, to take immediate precautionary measures to protect the public investors and other government services in the interests of the beneficiary. For such measures, the Commission shall immediately inform the European Commission and the public management authority of the country of origin.
87. article. Liability (1) the Commission is empowered to impose public for custodian and fines of up to 400 minimum monthly salary for the following offences:

1) in this Act and on the basis of the provisions in Commission issued the document and news, as well as the documents submitted and the news not the amendments submitted to the Commission, the time limits laid down;
2) for false declarations submitted to the Commission, or such a message public distribution;
3) on the action, which violated the provisions of this law concerning the publication of the report;
4 the Fund's assets) posted and storage conditions;
5 investment certificates emission), atpakaļpirkšan and take-back provisions;
6) for a fund prospectus for not making payments from the Fund's assets;
7) on the winding-up of the company or Fund order;
8 if not reporting) found in this law, the prospectus of the Fund or the Fund's Management Charter violations;
9) that are not defined in this Act an opportunity to consult the fund prospectus, the Fund's Management Charter and annual and half-yearly reports;
10) on the investment restrictions, except in cases in which the limits permitted under this Act.
(2) payment of the fine does not release from other statutory responsibilities.
Chapter x. Exchange of information article 88. The Commission's cooperation with Member States and other national supervisory authorities (1) the Commission is responsible for cooperation with national supervisory authorities, in order to ensure regulatory oversight of the provision of services throughout the territory of the Member States.
(2) the Commission, on the basis of a reasoned request, Member States ' supervisory authorities provided information about the licensed companies in Latvia, providing management services in the territory of the Member State concerned or having a relationship with a State licensed or licensed public, its Council or Board member or owner.
(3) the Commission shall immediately inform the management authority of the Member State concerned of any sanctions or restrictions on the activities that it applied to a licensed public in Latvia, which provides management services to the Member State concerned.
(4) for the performance of supervisory functions, the Commission concluded a co-operation agreement, may exchange information with other national supervisory bodies, if compliance with this law, the provisions of article 89.
Article 89. Restricted access information (1) the information received by the Commission from a Member State or the institution of the foreign surveillance supervisory functions, considered as restricted access information.
(2) in the first subparagraph may disclose the information to third parties, for which it required statutory functions, only with the foreign supervisory authorities prior written consent and only for the purposes for which the supervisory authority has agreed to disclose the information.
(3) the limited availability of information the Commission has received from the Member State or foreign supervisory authorities, it is entitled to use in the following cases: 1) in order to verify the information provided by the company to receive a licence;
2) in order to ensure that the custodian or the company's compliance with the regulatory requirements;
3) in order to apply the sanctions provided for in this Act;
4) the proceedings in which the contested administrative act issued by the Commission or the actual Act.
(4) the second and third subparagraphs the restrictions do not prevent the Commission to provide limited accessibility information: 1) the authorities responsible for the supervision of credit institutions, the open society Fund or similar investment companies in total, insurance companies, other financial institutions and governmental supervision of financial markets;
2) persons responsible for the open society Fund or similar investment companies in total, or a person involved in the provision of government services, liquidation or insolvency proceedings;
3) persons who, in accordance with the authorisation of the supervisory organ shall be made statutory, open society Fund or similar investment total, lending institutions, insurance companies and other financial institutions ' internal verification or audit;
4) institutions which are managed by investor and depositor compensation scheme, if the relevant authorities need to function.
(5) the provisions of this article shall not preclude a Commission to provide limited accessibility information for the Bank or the national central banks of the Member States, or other bodies responsible for monitoring the system, if the said institutions needed statutory functions.
(6) the provisions of this article shall not preclude a Commission to provide limited accessibility information for the organizer of the regulated market, Latvian Central Depositary or authorities which a Member State ensures the clearing and settlement of transactions in financial instruments, if it considers that the provision of such information is required to ensure that the action of the institutions, if the settlement or clearing system participants fail to fulfil their obligations or have reason to believe that they do not fulfil their obligations.
Article 90. The Commission's cooperation with the European Commission (1) the Commission shall inform the European Commission of: 1) licence for the provision of government services to the public, that is established in a foreign subsidiary companies;
2) where after a major acquisition in Latvia would become licensed foreign companies registered in the subsidiary company.
(2) the first subparagraph of paragraph 1 in the case in point, the Commission transmitted to the European Commission for information about the structure of the group, which includes the general public.
(3) the Commission shall inform the European Commission of any general difficulties which, in providing administrative services or entering government service delivery abroad, facing the public, which the Commission received the license for the provision of government services.
(4) the Commission shall inform the European Commission on the activities carried out under this law article 60 and the third paragraph of article 86 and licensed by the public in a Member State is refused to launch managed services or prohibited to provide government services in Latvia. "
27. the transitional provisions be supplemented with 17, 18, 19, 20, 21, 22, 23 and 24 by the following: "17. Investment firms which have received authorisation to an investment firm for the transaction until the 2004 30 April (inclusive), the license Commission re-register until 31 December 2004. The renewal application, a managed services company wishes to make. The application of this law, shall be added to article 10 in the fifth subparagraph, certain documents or amendments thereto, if such documents have already been submitted to the Commission in accordance with other laws and amendments need be done, taking into account planned future activities. Through the renewal of the licence, in the case referred to in this paragraph, a State fee is not charged.
18. where an investment firm that manages private pension fund established a pension plan funds, wants to continue the administration of these funds after 30 April 2004, it submitted the documents for the renewal of the license, as one of the Administration's services indicates investors ' individual financial instruments.
19. If an investment firm that manages the State funded pension scheme funds, wants to continue the administration of these funds after 30 April 2004, to 31 December 2004 shall take the necessary measures for the company and its activities are in compliance with this law and the State funded pension law.
20. Investment firm that launched the open investment fund administration to the 2004 30 April (inclusive) until 31 December 2004 shall prepare and submit to the Commission the administration of all the open investment fund prospectus for the short version. Investment firms can offer a condensed version of the prospectus of the Fund of fund investors, where the Commission, within 20 days after receipt of this document have not raised objections about its conformity with the requirements of this law.
21. an investment firm that manages the Investment Fund launched in 2004 to 30 April (inclusive) and after that date, plans to amend the existing administration of the fund prospectus, since changed, the information contained in the prospectus is drawn up and submitted to the Commission for the new version of the prospectus prepared in accordance with the provisions of article 57 of the law on investment fund prospectus for the full version.
22. the question of the entry into force of the amendments regulating securities market legislation with the terms used in this law, "investment firm" shall mean the term "brokerage firm" and the term "investment services" — the term "starpniekdarbīb".
23. the Commission until 1 May 2004 to develop and approve all submissions and statutory notice, published in the newspaper "Gazette", as well as put the Commission's website on the internet.
24. the annual report for 2004, the investment firm shall be drawn up in accordance with the law on the annual accounts of the company. ""
28. Make the section "Informative references to the directives of the European Union" by the following:

"The law contains rules of law arising out of Directive 85/611/EEC and amendments, which comply with Directive 88/220/EEC, 95/26/EC, 2000/64/EC, 2001/107/EC and 2001/108/EC. '
The law shall enter into force on 1 May 2004.
The law adopted by the Parliament of 18 March 2004.
State v. President Vaira Vīķe-Freiberga in Riga 2004 April 6 Editorial Note: the law shall enter into force on 1 May 2004.