Amendments To The State Funded Pension Law

Original Language Title: Grozījumi Valsts fondēto pensiju likumā

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The Saeima has adopted and the President promulgated the following laws: law on State funded pensions in State funded pension Act (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 2000, nr. 7; 2002, nr. 24) as follows: 1. Replace the entire law, the word "Finance" with the word "financial".
2. Replace the second paragraph of article 2, the word "securities" with the words "financial instruments".
3. in article 11: replace in the fifth subparagraph, the word "security" with the words "financial instruments";
to make the seventh subparagraph by the following: "(7) occupational pension scheme funds Manager in accordance with the procedure laid down by the Commission, agreed with the Agency, there the same assets at least one percent of all occupational pension schemes, the value of assets managed by the occupational pension schemes, funds Manager, but not less than 50 000 lats, which are deposited as Security Commission to a licensed bank. The active part which exceeds the amount of the security, occupational pension schemes, funds Manager invested in Latvian State issued or guaranteed debt securities or money market instruments, Latvia registered stock exchange (regulated market) included in the official list debt securities issued in the bank's mortgage lending mortgage bonds, banks and bank term deposits issued certificates. "
4. in article 12: Supplement 1 and the first subparagraph of paragraph 2, after the word "securities" (fold) with the words, "or" money market instruments "(fold);
Add to the first subparagraph of paragraph 3 "a" and "b" in subparagraph after the word "the" with the words "stock exchange (regulated market)";
make the first part of paragraph 3 of section "c" by the following: "(c)) are not included in the stock exchange (regulated market) are officially listed, but securities rules provides that the securities of the first subparagraph of paragraph 3" a "and" b "stock exchange referred to in point (regulated market) officially listed will be included within one year from the date of subscription to these securities;";
Add to the first paragraph of point 6 subparagraph "a" after the word "the" with the words "stock exchange (regulated market)";
Supplement 1 and the second subparagraph of paragraph 2, after the word "securities" (fold) with the words, "or" money market instruments "(fold);
to make 8 of the second paragraph of paragraph by the following: ' 8) occupational pension schemes of the group management of the company issued financial instruments investments should only be made with the stock exchange (regulated market), and investments in financial instruments must not exceed 2 percent of the assets of the investment plan ";
Add to paragraph 9 of the second paragraph after the word "the" with the words "transferable securities or money market instruments";
to express the second part of paragraph 10 by the following: ' 10) one credit institution deposits and investments of the same financial instruments issued by the credit institution in the Grand total may not exceed 15 per cent of the assets of the investment plan. This limitation does not apply to claims against the custodian upon request; ';
Add to the second part of paragraph 12 the following: "12) investment in financial derivatives can perform only so to hedge specific investment plan asset value fluctuation risks which may result from a change in the asset price or exchange rate, and only if the funds Manager has submitted to the Commission the rules which described in detail the risk management policy and financial derivatives valuation methods. Before you start a transaction in financial derivatives, funds Manager shall submit to the Commission information on the use of financial derivatives, the resulting risks, the quantitative limits and the methods that will be used in the derivative financial instrument to limit the risks. "
replace the fourth subparagraph of paragraph 3, the word "securities" with the words "financial instruments".
5. Add to the transitional provisions of paragraph 5, after the word "the" with the words "transferable securities or money market instruments".
The law shall enter into force on January 1, 2004.
The Parliament adopted the law of November 20.
The President of the Parliament instead of the President i. Otter Riga 2003 11 December Editorial Note: the law shall enter into force by January 1, 2004.

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