The Saeima has adopted and the President promulgated the following laws: For investment firms chapter I. General provisions article 1. The terms used in the law, the law is applied in the following terms: 1) Fund Investor-a person who invested money in investment funds;
the Fund assets-2) in the case where the community form the Trust Fund;
3) units: the investment company's securities issued confirming the participation of the investor of the Fund Investment Fund and from the ensuing rights of participation;
4) Investment Fund (hereinafter the Foundation) — the case of togetherness against the units committed investments, as well as transactions with investment assets of the Fund and on the basis of acquired rights;
5) investment object — freely transferable securities, real estate, time deposits and other bank in the case where, in accordance with the provisions of this law, the investment firm shall be entitled to purchase the assets of the Fund;
6) public officials — members of the Board of the investment firm, investment fund managers, managing directors and their deputies, 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;
7) public stakeholders — the investment company's Council members, officials, shareholders who own 10% or more of the voting shares of the company, the company affiliates (companies) and the law "on enterprise income tax", referred to in this paragraph, as well as all the individual spouses, parents or children;
8) risk reduction principles: financial loss, risk reduction, dividing the Investment Fund's investment objects, and subject to the transaction limits, as well as maintaining the possibility to obtain the highest expected revenue;
9) a custodian — the person that holds the assets of the Fund, in do it records transactions with the Fund's resources and other law and custody obligations laid down in the Treaty;
10) custodian custodian of the interested party, Council and Board members, shareholders who own 10% or more of voting shares, a custodian with a custodian of related companies (companies) and the law "on enterprise income tax", referred to in this paragraph, as well as all the individual spouses, parents or children.
2. article. The purpose of the law this law aims to reduce the risks of transactions in securities and to promote private savings-stock market.
3. article. The law regulated activity (1) this Act regulates the procedures are provided by the public funds in the Republic of Latvia with the aim to invest the takers.
(2) in the first subparagraph of this article, the procedure laid down for cash-only allowed this statutory investment objects.
Chapter II. Article 4 of the investment firm. The investment firm's legal status (1) article 3 of this law in the first part of this operation must only be performed by a registered investment company in Latvia, where the law provides otherwise.
(2) an investment firm (hereinafter the company) is a public finance and credit Corporation, whose sole activity is the management of investment funds and the Fund investment certificates emission and with it directly.
(3) the company may also manage private pension funds in accordance with the law "on private pension funds."
(4) the company is founded and operate in accordance with this law, the law "On joint stock companies", the law "on securities", other normative acts and its Statute.
5. article. Shares of (1) the society is the only registered shares.
(2) the society may not be placed on the shares publicly traded.
6. article. Capital and financial indicators (1) minimum formation capital is 100 000 lats.
(2) companies formation capital pay only in cash.
(3) companies formation capital is paid in full until the company submitted the securities market Commission (hereinafter the Commission) the special permissions (licenses).
(4) the company's own capital must not be less than the minimum share capital formation.
(5) the Commission has the right to determine the companies additional requirements with regard to liquidity and other financial indicators.
7. article. The location of the company's executive body must be Public in Latvia.
8. article. The public life of society may be to socialize only indefinitely.
9. article. The name of the company (1) the name of the company to be included in the expression "investment company" or "investment company" or the abbreviation "IR".
(2) a company which does not carry out this statutory action, your name may not be used in supplements, which direct or indirect reference to investment firms.
(3) the name of the investment firm, the words "limited liability company" or the abbreviation "JSC is not mandatory.
(4) the name of the company to be materially different from those foreign companies (company) names, of which up to date for the formation of a public official is quoted in the stock exchange, Latvia.
10. article. Start up (1) the company may start only after receiving a licence.
(2) a licence is issued under this Act and the investment company approved by the Commission in licensing terms.
11. article. Public rights, duties and liability (1) the company in accordance with this law, its Statute, the investment fund certificates emission prospectus (hereinafter fund prospectus) and the management regulations of the Fund in his name to fund investors at the expense of the Fund's assets are handled and its consequential rights, investing the Fund's investment allowed in this Act objects in accordance with the principle of risk reduction.
(2) a company with assets of the Fund shall act only in the interests of the fund investors.
(3) the Society for the administration of the Fund activities related to the use of property belonging to fund part of the capital carrying voting rights do not need the consent of investors in the Fund.
(4) the company is entitled to remuneration for the management of the Fund, including commissions and compensation for expenses, in this Act, the fund prospectus and the Fund's Management Charter.
(5) the company shall have the right to establish and manage several funds.
(6) the community has the responsibility to raise funds in the name of investor claims against the custodian or any third party, if the circumstances so require. It does not limit the rights of investors in the Fund to bring such claims on their own behalf.
(7) the company responsible for the damages that fund investors or third parties caused by the public officer or authorized person dealing or negligent behaviour, violation of the law, the prospectus of the Fund or the Fund's Management Charter, provisions or negligently performing their duties.
(8) the company is bound within a week of 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.
12. article. Public investment limits (1) the company has no right to invest their funds in another investment company, as well as purchase the same managed fund investment certificates.
(2) in the first subparagraph of this article, the restrictions that apply to the same company managed fund investment certificates acquisition, does not apply to the cases where an investment firm 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 be taken further action to meet the first part of this article.
13. article. Company reorganization (1) companies should not reorganize, transforming the business of another form.
(2) the company may just add another investment firm.
(3) the company's fusion with another investment firm or another firm (company) is not allowed.
(4) the allocation of the Public is allowed only if all the acquiring company is an investment company.
(5) the reorganization of the public in the cases laid down in this article may be carried out only with the authorization of the Commission.
14. article. The termination of the Fund management rights in the company's right to manage the investment fund shall expire: 1) with the Fund management rights to another company;
2) license expiration;
3) with the withdrawal of the licence;
4) with a closed fund investors ' decision of the general meeting of the company;
5) with the completion of the Fund by the company itself;
6) the moment when the Commission shall appoint the liquidators of the Fund, in accordance with article 35 of this law the provisions of the sixth part;
7) other fund prospectus or fund management in the cases provided for in the Statute.
15. article. The management of the fund transfer to another company (1) the company may transfer the Fund management rights to another investment company on a contractual basis.
(2) the transfer of the administration of the Fund requires the permission of the Commission.

(3) in order to receive the permission of the Commission, the company shall submit to the Commission a reasoned application, adding the Fund management rights transfer agreement or its notarized copy.
(4) the company shall submit to the Commission all provisions of this Act and the Commission, the Commission shall submit the amendments to the document, if such amendments in connection with the management of investment funds transfer is made.
(5) the Commission shall authorize the administration of the Fund for the transfer of rights a month from the date of receipt of the application, if such transfer does not touch the interests of investors in the Fund.
(6) in the Commission's authorisation must be submitted to the public for publishing newspaper Latvian journal "and in one daily newspaper in the announcement of the Fund management rights to transfer to another company, indicating the company name, registration number, address and location of the Board.
(7) the agreement on the transfer of management of the Fund to another firm to enter into force not earlier than within a month from the date of the newspaper "Latvian journal" published a statement on the Fund management rights to another company.
(8) until the entry into force of the Treaty, all with the investment fund-related rights and obligations over the new company.
16. article. 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 14, paragraph 1, a specific case.
(2) a custodian must be submitted without delay to the publication of the newspaper "Latvian journal" and in one daily newspaper in the announcement of the regulatory law of the transition. The notification shall specify: 1 the name of the company), which manages the investment fund was;
2) the name of the investment fund;
3) a custodian name, legal address and location of the Board.
(3) a company the right to manage the investment fund is ended otherwise than with the Fund management rights transfer to another company should immediately transfer custody of all funds managed by the records.
(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 of the administration of the Fund the right to the custody of the transitional days to transfer the Fund management rights to another investment firm. The Commission may extend the period to six months from the date of the regulatory law.
(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 investment company, the custodian must take the Fund's liquidation.
Article 17. The winding up of the company (1) the winding up of the company in accordance with the law "On joint stock companies", pursuant to this law, these additional provisions.
(2) the company shall start its liquidation, before they are not over the right to manage all its administration of existing investment funds.
18. article. Public authorities (1) the company shall be managed by the general meeting of shareholders, the Board and the Management Board.
(2) a public officer in the event of transfers of new Executive post, where the Commission, within a week after receipt of the notice of election, that person is not raised reasoned objections on their compliance with the Act and the regulations approved by the Commission.
19. article. Public administration institutions and officials to members of the limits imposed On public officials (1) must be the only person who is competent in matters of investment and has a flawless reputation.
(2) the first subparagraph of this article, the rules for the approval of the Commission.
(3) the Council of the society or the Board or the company authorized person may at the same time be a member of the public in the administration of the Trust Fund custodian Board or Board Member, authorized person or custodian custodian staff.
(4) the company's Board or officer must be a person who has been convicted for an intentional crime or intentionally or negligently committed crimes against property, economic crime, business crime, amatnoziegum, jurisdiction of the crime or a crime against regulatory procedures — regardless of the deletion or removal of the criminal, as well as the person who has been deprived of the right of establishment.
(5) for the purposes of this law, a person is considered not penalized if the offence for which it had been convicted, the person at the time of the election law is not recognised as a crime.
Chapter III. Investment Fund, article 20. Investment Fund and the legal status of property (1) investment fund is not a legal entity.
(2) the assets of the Fund are the joint property of the Fund, and its hand-held, booked and managed separately from the other companies they manage the funds, as well as a custodian.
(3) the fund investor is not entitled to require the Fund Division. This right is also not the pledged property investors in the mortgage, the creditor, a worker or an administrator in the insolvency of the investor.
(4) the assets of the Fund must not be included in the company or the custodian as the property of the debtor, if the company or the custodian is declared bankrupt or is being wound up.
(5) claims against the fund investors on its obligations may be directed to his units, but not on the property of the Foundation.
21. article. Types of funds (1) the investment fund may be set up as an open or a closed Fund.
(2) open investment fund is a fund that manages the company's obligation to make a contribution certificate atpakaļpirkšan, if Foundation investors request it.
(3) the investment fund is a fund that manages the company's prohibited investment certificate atpakaļpirkšan.
22. article. The establishment of the Fund (1) Fund established by the company.
(2) the decision on the establishment of the Fund, the fund prospectus and the Fund's Management Charter, approval of the general meeting of shareholders shall be adopted. The general meeting of shareholders has the right to authorize the public Board to approve the fund prospectus and fund management rules.
(3) the Commission shall record in the open after the Fund investment certificates emission permits (emission permit) issued. Closed funds are recorded after the first issuance of the permit.
23. article. (1) the emission permit emission permit is issued by the Commission.
(2) the authorization of a company shall submit to the Commission an application accompanied by: 1) fund prospectus;
2 the Fund management regulations);
3) a custodian agreement;
4) news about the Fund Manager;
5) news about Fund auditor (article 74 of the third).
24. article. The name of the Fund (1) the name of the Fund was to be included in the expression "investment fund" or "investment fund" or its abbreviation "IF". These words and abbreviations must not be included in the business (company) names.
(2) the name of the Fund is significantly different from the names that the Fund investment certificates or comparable securities are distributed in Latvia.
25. article. The Fund Investor's rights (1) the Fund Investor has the following rights: 1) without any restrictions to dispose of their investment certificates, if the law does not stipulate otherwise;
2) in proportion to the number of units in accordance with the law and the fund prospectus participate in transactions with the Fund's distribution of earned income;
3) in proportion to the number of units of the Fund to participate in the distribution of the proceeds of liquidation.
(2) open-fund investor has the right to request the company repurchases its units.
(3) a closed fund investors have the right to require investors of the Fund the convening of this Act in the cases and in the procedure.
(4) Other fund investors the right to determine the law and the fund prospectus.
26. article. Delimitation of liability of the investors of the Fund (1) the fund investors shall not be liable for the obligations of the company.
(2) the fund investor is responsible for claims that may be filed against the property of the Fund, only to then Fund suspension part.
(3) an agreement that is inconsistent with the provisions of this article, the time of the void.
27. article. Fund investors closed the Assembly (1) in a closed fund investor meeting (hereinafter General meeting of investors) convened by the public on its own initiative or at the request of the investor.
(2) the company must convene a general meeting of investors in the fund prospectus approval, except for the first investment certificates emission, as well as when requested in writing by investors representing at least 10 percent of the value of the Fund. If the investor requests the convening of the Fund's contributors, be convened this meeting to the public within one month of receipt of the request.
(3) the request shall indicate the reason for convening general meeting of investors and in working order. The request must be submitted to the company and the custodian.
(4) If a company General meeting of investors without calling in the second paragraph of this article, the time limit expires, the custodian must convene the meeting within two months from the date of the request made to the public.
(5) if the custodian does not convene a general meeting of investors within the prescribed period, the fund investors shall submit a written request to the Commission, which shall convene a general meeting of investors in the month of receipt. In the present case is not applicable in the second part of the 10 percent limit.

(6) the notice of the convening of the investors should be published in the newspaper "Latvian journal" and in one daily newspaper, as well as to inform the Commission, the custodian, the company and the Fund's Auditors.
(7) the convening of the general meeting of investors spending is covered by the Fund.
(8) the general meeting shall have the right of investors to adopt binding decisions for the public: 1) the approval of the prospectus of the Fund and the amendment to it;
2) public or custodian;
3) liquidation of the Fund;
4) other issues that are fixed by the Commission or which are provided for in the fund prospectus.
(9) the general meeting of investors is entitled, if the participating investors representing at least half of the value of the Fund.
(10) the decision of the general meeting of investors is adopted if the vote on the investors, representing not less than three quarters of the plenary as a whole represented the value of the Fund.
(11) company and the custodian, the members of the Commission representatives and the Auditors have the right to participate in the general meeting without voting rights of investors, but the Advisory rights.
(12) the rights of investors to participate in the general meeting of investors in accordance with the law "on joint stock companies" the provisions relating to public limited companies.
(13) a copy of the minutes of the general meeting of investors will be submitted to the Commission within three days after the general meeting.
(14) this decision shall enter into force after a month from the date of its adoption, the Commission this time was not done to reasoned objections due to non-compliance with this decision the law or rules of the Commission. The Commission is empowered to take a decision on the shorter general meeting of investors, the entry into force of the decision.
28. article. The management regulations of the Fund (1) the administration of the Fund Rules (hereinafter rules) determine the arrangements for the administration of the Fund. Charter and amendments enter into force by the date of registration in the Commission.
(2) the Charter should be freely available to all investors in the Fund at their request.
(3) the Regulations shall specify: 1) the name of the Fund;
2) company name, registration number, registered office and number of the licence;
3) Fund management general principles and procedures, in particular decision-making powers and procedures to handle the Fund's assets;
4) customer service order, specifying in particular the procedure: (a) to be served in the fund prospectus), b) admissible and should contribute to the acquisition of the certificate application, (c)) of the booking of the units to be issued receipts, d), information about those changes in transactions with the Fund's distribution of earned income, affecting the operations of the Fund, and such events, e) to emissions units, atpakaļpirkšan and take-back;
5) Fund, the investment certificate sales and atpakaļpirkšan prices, as well as the calculation of the income of the Fund;
6) winding-up procedure of the Fund;
7), arrangements of the Fund management rights and assets to the custodian or transfer to other persons;
8) procedures are public cooperation with the custodian of the Fund management;
the Fund closed-9) investors of the general meeting is convened, and procedures;
10) jurisdiction of the payments to the Fund list and calculation procedures;
11) arrangements shall be provided on public statements and publicly available information;
12 the procedure for amendment of the Statute).
(4) the Regulations may also contain other provisions not contrary to the law or regulations of the Commission.
29. article. Fund Manager (1) the Management Board shall appoint to each investment Fund Manager (hereinafter Fund Manager), who work with a managed fund assets in accordance with the statutes of the company and the Fund rules.
(2) the Fund Manager is allowed to work only in one investment firm.
(3) the Fund Manager may manage more than one public administration existing funds.
30. article. The value of the Fund and the Fund's share value (1), the value of the Fund is an investment fund's assets and liabilities to the value of value.
(2) the portion of the Fund's investment certificates of one fixed right of action according to the value of that part of the Fund.
(3) the portion of the Fund's value is the value of the fund divided by the units in circulation.
(4) investment certificates outstanding is the difference between the number of units issued and the number of units that have been removed from circulation due to atpakaļpirkšan requirements.
(5) the open society Fund's share value down each day.
(6) the Closed part of the value of the fund company is determined not less frequently than once a month.
31. article. Consideration to the public, a custodian and third parties (1) the remuneration of the public custodian and others, as well as any other fees on investment funds, the assets of the Fund should be paid according to the provisions of the prospectus of the Fund.
(2) the public is not entitled to commissions and compensation for transactions related to the property of the Fund-the Fund investment certificates that are managed by the same company or other companies with which the company has a joint administration or with which it is in the same group.
32. article. Transactions with the Fund assets of the company makes business with assets of the Fund in accordance with this Act, the fund prospectus and fund management rules.
33. article. Transaction limits (1) the public is not entitled to commit to the expense of the Fund's assets, if this obligation does not apply to the Fund directly.
(2) the company may not carry out transactions with the Fund's charity.
(3) claims on the public and the Fund's assets are in mutual claims are not included.
(4) the assets of the Fund may not be pledged or otherwise encumbered, with the exception of the ninth and tenth article prescribed in cases where it serves as collateral.
(5) the Fund shall not be transferred for the benefit of: 1) this Fund manages the company and its stakeholders;
2) the Fund custodian and its stakeholders;
3) other funds managed by the same company.
(6) the Fund's assets may not be used for the purchase of property from the fifth paragraph of this article.
(7) the acquisition of securities which are issued by one of the fifth paragraph of this article, the persons referred to in, the Fund's assets may only be used with a stock exchange or other regulated public market.
(8) At the expense of the Fund may not perform the following steps: 1) execute company's commitment, which it incurs in its name and on his account;
2) to issue securities other than units;
3) commitments arising from the Treaty of guarantee.
(9) the company may raise loans to fund open invoice, if these loans are taken out for a period of up to three months and the total does not exceed 10 percent of the value of the Fund open.
(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 was less than 25 percent of the value of the Fund closed.
(11) company may not raise loans to fund the open invoice from this article in the fifth subparagraph, such persons, with the exception of a non-interest-bearing loans and borrowings from the company of a custodian at an interest rate that does not exceed the financial market average interest rate for the loan at the time of sampling.
(12) the company shall invoice the funds sell securities or commitments for the sale of securities, if at the time of conclusion of the transaction, not the property of the Foundation. Violation of this provision shall not affect the validity of the transaction.
34. article. The reorganization of the Fund the Fund or fund mergers Division is not allowed.
35. article. (1) the liquidation of the Fund liquidation of the Fund carried out by the liquidator. The liquidator may be firm, custodian or a person designated by the Commission.
(2) the company shall carry out the liquidation of the Fund if: 1) in the month following the expiry of the custodian is a new custody agreement;
2) within one year after the establishment of the Fund has not released any of the units;
3) all open fund investors have taken advantage of the right to atpakaļpārdošan.
(3) the second paragraph of this article, paragraph 3 of the said provisions do not apply within six months after the establishment of the Fund.
(4) the company shall carry out the liquidation of the Fund closed, if that fund investors ' general meeting shall decide on the liquidation of the Fund.
(5) the Custodian shall carry out the liquidation of the Fund, if it does not transfer the administration of the Fund, the investment firm of article 16 of this law in the seventh part of the prescribed period.
(6) if the company or the custodian does not initiate liquidation of the Fund within one month from the date of such dissolution was launched, the Commission has the power to appoint the liquidators of the Fund. Such fund liquidator has all the same rights that is public, if it carries out the liquidation.
(7) in the course of Liquidation may not conduct emission units, atpakaļpirkšan and fund prospectus of the Fund provided for the distribution of the income of the fund investors. The liquidator shall have the right to perform only with liquidation.
(8) the liquidator must follow the vendor and the interest of investors in the Fund.
(9) the liquidator in full response fund investors and third parties for damages suffered in the course of liquidation, if the liquidator for the purpose of or recklessly violated the law or the Fund rules or the Government negligently performed his duties.
36. article. Notice concerning the liquidation of the Fund

(1) on the commencement of the liquidation of the Fund liquidator shall immediately notify the Commission and publish an appropriate notice in the newspaper "journal".
(2) a notice of liquidation to the liquidator, you must specify login duration and place of the creditors. Vendor login period may not be less than three months from the date of publication of the notice.
37. article. The Fund's property sales and recovery (1) after the opening of winding-up proceedings and liquidators shall organise the Fund performed, except in the Fund of funds, sales.
(2) the assets of the Fund assets and sales revenues in the Fund of funds (hereinafter referred to as the liquidation proceeds) the custodian or the liquidator distributes the following order: 1) the claims of creditors;
2) the claims of creditors who have their claims to the period specified in the notice;
3) the claims of creditors who have their claims after the notice deadline, but before the distribution of the proceeds of liquidation.
(3) If the proceeds of liquidation are not enough to satisfy the second part of this article claims referred claims upheld by frustrated from investment firms, with the exception of property claims arising after the expiry of the regulatory law.
(4) If the proceeds of liquidation are not enough to meet the second part of this article, these claims incurred during the period when the administration rights of custody, it disposed of satisfy the custodian.
(5) the remaining proceeds of liquidation of the Fund to be distributed to investors in proportion to their contribution to the number of the certificate.
(6) the Custodian shall submit for publication or liquidator newspaper "journal" statement on the distribution of the proceeds of liquidation of the fund investors, showing one of the amount payable shall be the licence, as well as make payments to the place and time.
(7) all payments to creditors and investors of the Fund must be made in cash.
38. article. The costs of the liquidation of the Fund (1) the liquidator shall have the right, in the course of liquidation to cover liquidation costs of liquidation proceeds.
(2) the liquidation expenses shall not exceed two percent of the proceeds of liquidation.
39. article. Liquidation report (1) the liquidator shall submit to the Commission with a monthly report on the progress of the liquidation.
(2) the week following completion of the liquidation, the liquidator shall submit to the Commission a statement of completion of liquidation and winding-up of the expiry review. Review rules adopted by the Commission.
Chapter IV. Custodian of article 40. General provisions (1) transactions with fund assets the company makes with the custodian.
(2) a custodian may be registered in Latvia or foreign bank branch of the bank (branch) in Latvia, which has the right to make starpniekdarbīb in the stock market and Bank of Latvia issued the authorization to accept deposits of natural persons.
(3) the Custodian and the company may not be connected undertakings (companies) the law "On enterprise income tax".
(4) the Custodian does not have the right to invest their funds in the Fund's investment certificates, which it is custodian.
(5) in the event of a change in custody, the new custodian, if needed, within six months from the custodian of the Treaty entry into force must be taken to its activities comply with the fourth paragraph of this article.
Article 41. Property custodian of the Fund storage (1) the company shall open a separate account for each custodian of its administration to the existing Fund.
(2) the income of the Fund's assets and income from units in favour of emissions to the appropriate fund custodian.
(3) the Custodian may make payments from the Fund to the public order of the Foundation in accordance with the law, the prospectus of the Fund, the Fund's Management Charter and a custodian agreement.
Article 42. Custodian responsibilities (1) a custodian shall have the following responsibilities: 1) keep the Fund assets under law and custody agreement;
2) follow to emissions units, sales and atpakaļpirkšan is the name of the company and in accordance with the law, the prospectus of the Fund and the Fund's administrative rules;
3) follow to the Fund's value to be calculated according to the law, the rules of the Commission, the fund prospectus and fund management rules;
4) execute the orders of society, if they are not in conflict with the law, the rules of the Commission, the fund prospectus, fund administration and custody provisions of the Treaty;
5) to ensure that the income of the Fund will be used in accordance with the law, the prospectus of the Fund and the Fund's administrative rules;
6) follow are properly carried out transactions with the Fund's specific charges.
(2) the Custodian shall act independently of the company and only in the interest of investors in the Fund, with the exception of the first paragraph of article 4 in certain cases.
(3) the Custodian is obliged in the name of bringing fund investor claims against the company, if the circumstances so require. It does not limit the rights of investors in the Fund to bring such claims on their own behalf.
(4) the Custodian is obliged to bring a counterclaim in the case due to its commitment is drawn against the fund drive.
43. article. Custodian transfer of obligations (1) the Custodian shall have the right to transfer the contract property of the Foundation and to fund the account service to third parties, if this is provided for in a custodian agreement.
(2) if the custodian is transferring all or part of its functions to a third party, such a contract is in force, if approved by the public and the Commission.
(3) the obligation to transfer Custody to third parties does not exempt from the Act and the custodian a custodian contract responsibility.
44. article. Custodian compensation (1) the Custodian is entitled to remuneration for custody services laid down in the Treaty.
(2) a custodian of the remuneration of the Fund is to cover things on public order grounds under the custody agreement.
Article 45. The obligation to notify the Custodian is obliged immediately to report to the Commission and to the Council of the society to the custodian of public conduct that is in conflict with the law, the prospectus of the Fund, the Fund's administrative rules or the custodian agreement.
Article 46. Custodian's responsibility (1) Custodian in full response fund investors, the public and third parties for damage caused if the custodian with intent or recklessly violated the law or custody agreement or negligently performed his duties.
(2) if the custodian has provided consent to the transaction, which does not comply with the provisions of this law, or have not made a claim for infringement of the provisions of this law, the custodian and the company shall be jointly and severally liable for the damage caused to the Foundation.
47. article. A custodian agreement (1) custody agreement is concluded in writing to the society and the custodian agreement, under which the custodian undertakes to keep Fund assets and to do business with assets of the Fund and the Fund account service according to the law, this agreement and the order of society.
(2) a custodian agreement specifies: 1) company name, registration number, license number, the legal address and location of the Management Board;
2) custodian name, registration number, license number, the legal address and location of the Management Board;
3 the name of the Fund);
4) rights and obligations of the parties;
5) Fund account assistance procedures;
6) a custodian level of remuneration and payment arrangements;
7) order in which a custodian covered the costs incurred in carrying out transactions with the assets of the Fund or operating account of the Fund;
8) order in which a custodian shall transmit to third parties Fund account, documents and other things;
9) responsibility for non-fulfilment of the contract or not properly carried out;
10) the term of the agreement;
11) contract amendment;
12) contract early termination provisions and procedures;
13) dispute;
14) others from the fund prospectus rules.
(3) the custodian agreement, the parties may also contain other conditions which are not in conflict with the law, the prospectus of the Fund and the Fund's administrative rules.
48. article. A custodian contract terminated (1) custody agreement shall cease in the following situations: 1) the deadline laid down in the contract shall terminate;
2) the mutually agreed;
3) one party to unilaterally withdraw from the Treaty, subject to the second subparagraph, the time limits;
4) circumstances which result in custody no longer comply with the requirements of the law;
5) a custodian is declared insolvent;
6) a custodian shall terminate;
7) launched the Fund liquidation;
8) the Commission shall order the company to change the custodian;
9) in other custody cases laid down in the Treaty.
(2) the party unilaterally withdraw from the agreement, is obliged to notify the other party three months ' notice if the custodian agreement in the longer term.
(3) the custodian shall not terminate the contract with the Fund management rights to transition a custodian.
49. article. Order for change of custody (1) the Commission has the authority to give orders to the public change the custodian, if the custodian violates this law or custody agreement or if it is necessary for the Fund to protect the interests of investors.
(2) in the first subparagraph in the case of contracts within the custody ends on the day when the Commission adopts its decision.
50. article. The new custodian of the conclusion of the contract (1) the public within one month of the expiry of the custody must conclude a new custodian agreement, except where the contract is terminated due to the liquidation of the Fund.

(2) if the society is in the first paragraph, not be concluded within the time limit set a new custody agreement, it must initiate liquidation of the Fund.
Chapter v. Investment certificates emission and circulation of article 51. Investment certificate (1) publicly traded units takes place in accordance with the law "on securities".
(2) one of the Fund's investment certificates may not be enshrined in the various rights, and those of the units secured the rights and obligations of the Fund must cover the entire thing.
(3) disposal of investment certificates of the acquirer also go the the seizure of things supposedly part of the Fund.
(4) investment certificates are issued in dematerialised form.
52. article. Investment certificates emission (1) open the Fund's investment certificates and emission time must not be limited.
(2) a closed fund investment certificates of one release of the initial deployment is limited, and may not exceed three months.
(3) the second paragraph of this article, the deadline expired emissions shall be deemed to have been effected the paid amount in the units.
(4) investment certificates are issued only to full payment of the price of those certificates in cash in accordance with the provisions of the prospectus of the Fund. Investment certificates for cash received, except for the release of the Commission should include the funds immediately.
(5) if the units were released, but the Fund's share value is not counted in public funds from their belongings to be invested in the funds missing.
53. article. The price of the units (1) open the Fund's investment certificates emission price is the first contribution to the sales price of the licence.
(2) a closed fund investment certificates emission price is the price of investment certificates of the initial deployment, and it does not change throughout the time of emission.
(3) investment certificates of the Fund issue price is determined by the company in accordance with the provisions of the prospectus of the Fund.
(4) open the Fund's investment certificate sale price is part of the value of investment funds and the release of the amount of the Commission.
(5) the release of the Commission's consideration of the public on the issue of investment certificates.
(6) Atpakaļpirkšan the Commission is open to the public for remuneration of the Fund investment certificates atpakaļpirkšan.
(7) Open Fund units sales price to be determined simultaneously with the share value of the Fund, and information on it must be indicated in the prospectus of the Fund.
(8) open the Fund's investment certificates of the atpakaļpirkšan price is part of the value of investment funds, which total about atpakaļpirkšan commissions in accordance with the Fund's prospectus.
(9) if the company shall notify the investment certificate sale price, they must notify also atpakaļpirkšan price and vice versa.
54. article. Atpakaļpirkšan units (1) open fund managing company is obliged to make a contribution certificate atpakaļpirkšan at the request of the investors in the Fund, paying him in cash atpakaļpirkšan price in accordance with the Fund's share value atpakaļpirkšan requirements on the date of receipt.
(2) upon receipt of the contribution requirements of the atpakaļpirkšan certificate is immediately removed from circulation. After removal from the revolving fund investors terminate all of the units, with the exception of the rights linked to the claim of the investment certificates of the atpakaļpirkšan prices.
(3) the Atpakaļpirkšan price is payable from the Fund assets in the fund prospectus and set time limit.
(4) the Atpakaļpirkšan price payment deadline may not exceed three months from the date of receipt of the atpakaļpirkšan requirements.
(5) investment certificates of atpakaļpirkšan atpērkam requirements for the submission of the order.
55. article. The units take-back requirement (1) if the fault of the fund prospectus and the documents attached to messages, which are essential for the assessment of investment certificates is incorrect or incomplete, the investor has the right to require the company to take back his investment certificate and to pay him for this reason, all losses.
(2) If in the first case referred to the Fund's investors has acquired the investment licence of a person who deals with the starpniekdarbīb of the stock market, the person with the company shall be jointly and severally liable for the damages fund investor. This person is not liable if it proves that it is not known, and could not know that the news is incorrect or incomplete.
(3) If, at the time when the Fund Investor has learned that the news is not correct or complete, he is no longer the owner of the units, he has the right to demand that the company pay the difference by which she invested amount exceeds the investment certificates of the atpakaļpirkšan price atpakaļpirkšan.
(4) in accordance with the Requirements of the first, second and third part of commenced within six months from the date when the Fund Investor has learned that news is not correct or complete, but no later than three years from the date of acquisition of the units.
Article 56. Fund prospectus (1) certificate of emission of the Fund must not be made without the Commission registered the prospectus of the Fund.
(2) the fund prospectus approved by the Management Board of the company, if the company's articles of association do not provide for another fund prospectus approval procedures.
(3) a closed fund prospectus, except the first prospectus approved by the general meeting of the Fund's investors.
(4) the fund prospectus and its annexes shall enter into force after the Commission contributed to the emissions permit certificate. The amendments shall enter into force on the day when they are established in the Commission.
57. article. Fund prospectus contains (1) a fund prospectus must comply with the regulations and requirements of the Commission on the Securities issue prospectus.
(2) the information to be included in the prospectus of the Fund for the fund company, custodian and advisers.
(3) the fund prospectus for Fund specifies: 1) fund prospectus and at the date of entry into force of the amendment;
2 the name of the Fund);
3) site where you can get the fund prospectus, the Fund's Management Charter, if it is not attached to the prospectus, the Fund's annual or half-yearly reports, details of the Fund's value and the sale of the units and the price of atpakaļpirkšan;
4) this statutory fund investor rights brief explanation;
5) news about fund investors tax and applicable to the payment of fees and the procedure;
6 Fund auditor);
7) units of issue price, volume and time;
8) sales units, atpakaļpirkšan and take-back rules and procedures;
9) the circumstances in which you can stop atpakaļpirkšan and the units take-back;
10) units for sales and prices atpakaļpirkšan the calculation method and frequency, as well as how, where, and how often these prices are passed on to the public;
11) Commission on the sale of the units and atpakaļpirkšan;
12) Fund value determination principles and rules;
13) income of the Fund rules, the use and distribution of the Fund's investors;
14) investment policy (investment object types, specialization in certain geographical areas or industrial sectors URu.tml.)-goals, financial goals, and investment-related risk analysis;
15) investment restrictions;
16) society, custodian and others from the Fund's assets, the maximum amount of remuneration payable and calculation procedures, as well as other expenses borne by the Fund assets;
17) to fund a loan to be the expense of principles and procedures;
18) Fund for the financial year beginning and ending.
(4) the fund prospectus for the company that manages the Fund: 1) company name and registration number;
2) public legal address and location of the Executive Body;
3) date of incorporation of the company;
4) company formation capital, registered and paid-up capital;
5) members of the Management Board and the first and last names, their duties outside the company if they have a role in society;
6) other companies managed fund names and a brief description.
Fund Manager 7) a first and last name;
8) the shareholder name and surname or name, which owns more than 10 percent of the company's shares or the voting rights arising from the shares.
(5) the fund prospectus in respect of consultants, which according to the signed agreement, the remuneration shall be paid from the assets of the Fund are: 1) the consultant as well as a different provider name, surname or name, registration number and location;
2 the provisions of the Treaty in question), which is important to the investor in the Fund, except for the provisions on remuneration.
(6) the fund prospectus relating to the custody of the State: 1) custodian name and the registration number;
2) custodian for legal address and location;
3) date of incorporation of the custodian;
4) custodian Board and Council members name.
(7) a closed fund prospectus in addition indicate: 1) fund investors the right to request the convening of the investors and to participate in them;
2) general meeting of investors, competence and decision-making procedures.
(8) in an annex to the prospectus of the Fund, the Fund shall be added to the last annual report or semi-annual report, if it is approved at the last annual report.

(8) in an annex to the prospectus of the Fund investment certificates to purchase application form with an indication that with the signing of the application, the provisions of the prospectus of the Fund shall become binding on the Fund Investor and public relations.
(10) the Commission is empowered to issue regulations that specify fund prospectus additional information to be included.
58. article. The availability of the prospectus of the Fund (1) the obligations of the company is to ensure the fund prospectus and the issuance of the annex to all parties before the acquisition of investment certificates.
(2) if the fund prospectus is amended, after the date of its entry into force without delay, make available the full text of the prospectus of the Fund, which contains the amendments and their date of entry into force.
Article 59. The Fund's advertising (1) emissions, emissions in advertising Funds, placing advertisements or publicly announcing the emissions rules, mandatory: 1) the name of the Fund;
2 governing the fund company) name, legal address and location of the Executive Body;
3 the name of the custodian) legal address and location;
4) deployment of the units start date;
5 investment certificates emission) or the sales price;
6) fund prospectus and the issuance of investment certificates;
7) that are not guaranteed a profit.
60. article. Foreign fund investment certificates emission and circulation (1) foreign investment fund certificates and comparable securities emission and circulation to the public in the Republic of Latvia is allowed only with the dealer established in the Republic of Latvia; the Distributor is responsible for open Fund units and take-back of atpakaļpirkšan in the Republic of Latvia. The rules for such activities as agent and approved by the Commission.
(2) the authorization shall submit an application to the Commission, which added the following documents or equivalent documents: 1) for the competent national authorities issued a statement that the Foundation and the host society it is registered and that this institution guarantees the availability of the information concerned;
the management regulations of the Fund 2) or equivalent document;
3 the last audited the Foundation) and the approved annual report, as well as the half-yearly report, if made after the approval of the annual report;
4) fund prospectus;
5) contract with investment certificate or comparable securities dealer in Latvia.
(3) the fund prospectus, fund rules, a management contract with the dealer and similar documents attached to the notarized translation into the State language of the Republic of Latvia. For a translation in the language of the country is the highest legal force. Other documents to be submitted by the Commission to add a translation in an official language or other language authorised by the Commission.
(4) the Commission shall issue the authorisation of foreign fund investment certificates or comparable securities for two months from all the necessary document and the receipt of the additional information, provided that the following conditions exist simultaneously: 1) and it manages the fund company in the country, which determines the regulatory legislation, which is similar to this statutory regulation;
2 the Fund and manages the) society is registered or licensed by the national competent authorities;
3) is guaranteed in the legal information about the Fund, as well as their host societies;
4) contract with the dealer concluded in accordance with the Commission's rules.
(5) the Commission has the right to suspend the emissions and consumption, there is any of the following conditions: 1) or the host society the Foundation no longer corresponds to the fourth paragraph of this article 1. — the provisions of paragraph 4;
2) submitted to the Commission in the documents and the information provided about the Fund or manages the company and its activities;
3, it manages the Fund in) company or distributor in violation of government regulations of the Fund or the fund prospectus;
4) Fund, manages the funds of the company or the dealer's activity is contrary to the interests of the investors of the Fund;
5) other legislation cases.
Chapter VI. The Fund's investments in article 61. The company's obligation to obtain information on the Investment Fund's expense, the company is obliged to obtain sufficient information on the potential or the resulting investment objects, as well as to monitor the financial and economic situation, which will be issued in the securities or has been invested in the Fund's assets.
62. article. The Fund's investment objects (1) the funds of the Fund may invest only in securities pursuant to this statutory investment restrictions. The meaning of this law for securities are treated as other money market instruments are included in the list approved by the Commission.
(2) a closed Fund funds in addition to the first paragraph of this article investment objects also can invest in real estate and in term of the bank pursuant to this statutory investment restrictions.
Article 63. Investment diversification (1) making investments, the company must provide adequate diversification of investments in different investment objects.
(2) the Fund's investment in a single issuer skipped freely transferable securities should not exceed 5 percent of the Fund's assets.
(3) the second subparagraph of that limit can be increased up to 10 percent of the Fund's assets, if this is provided for in the fund prospectus. The total value of those securities may not exceed 40 per cent of the Fund's assets.
64. article. Investments in securities (1) investment in the Fund may only be done freely transferable securities that meet at least one of the following criteria: 1) they quoted on the stock exchange, located in the Republic of Latvia or the Organisation for economic cooperation and development in a Member State or is a member of the International Federation of stock exchanges;
2) they quoted on the stock exchange, which is not located in the Republic of Latvia or the Organisation for economic cooperation and development in a Member State, or are traded on other regulated securities markets and public, if such exchange or market choice is approved by the Commission.
(2) the Fund's investments can be done also recently issued freely transferable securities which are not quoted or traded in the first part of this article in accordance with the procedure laid down, if these securities rules that will be presented in the application for the admission of securities referred to in the first subparagraph to official listing on stock exchanges or regulated and public securities markets and their inclusion in the lists on the stock exchange will take place within one year from the date of issue.
(3) the Fund's investments can be made in the first and second subparagraphs do not freely transferable securities laid down when the investment amount does not exceed 10 per cent of the Fund assets in the open or closed 30 percent of Fund's assets.
(4) the assets of the Fund may invest in securities of precious metals derivatives.
Article 65. Investment in the country, local government, the Bank of Latvia and the bank issued and guaranteed securities (1) article 64 of this law the restrictions do not apply to the investment of the Republic of Latvia and its local government, the Organization for economic cooperation and development, the Member States or of the Republic of Estonia, the Republic of Lithuania issued or guaranteed freely transferable securities.
(2) a fund belonging to the first paragraph of this article one person's freely issued or guaranteed the transferable securities should not exceed 35 percent of the Fund's assets.
(3) in the second paragraph of this article, determine the amount allowed to exceed, if the following conditions are fulfilled: 1) being exceeded is approved by the Commission;
2 the Fund owns securities) of the six or more issues, and each emissions value of securities not exceeding 30 percent of the Fund's assets;
3 the management regulations of the Fund) are those persons whose emitted or guaranteed securities in the Fund is going to invest or has invested more than 35 percent of the Fund's assets.
(4) The value of the securities owned by the Fund, which shall be issued by or guaranteed by one of the first part of this article, not those countries may not exceed 25 percent of the Fund's assets.
(5) in the second and fourth restrictions do not apply to the closed Fund, if the listing is another limit or if the restriction is lifted.
(6) article 64 of this law, second paragraph, the limit does not apply to the Investment Bank of Latvia and the Republic of Latvia of issued credit institutions registered in or in securities guaranteed that strengthen commitments made for the funds obtained in accordance with the procedure prescribed by law to invest in securities traded throughout this time enough to ensure they secure obligations and those obligations have priority, when it expired. The Commission shall adopt the list of such securities.
(7) the Fund belonging to the sixth part of this article that one person in securities issued or guaranteed value must not exceed 25 percent of the Fund's assets.
(8) If a fund belonging to the sixth part of this article that one of the issuer's securities value exceeding 5 percent of the Fund's assets, the total limit of 5 percent of such securities exceeding value must not exceed 80 percent of the Fund's assets.

(9) the securities referred to in this article shall not be taken into account in the application of this law, article 63, third paragraph down the 40 percent limit. Article 63 of this law, the second and third subparagraphs and in the second and in the fourth subparagraph, such restrictions may not be combined.
66. article. The investment equity shares (1) with the fund companies in one group manages the existing koncernuzņēmum shares may be purchased only through the stock exchange.
(2) property investment fund, directly or indirectly, shall not exceed 10 per cent of any such indicator: 1) contribution to the one in which the issuer's securities, the issuer of the debt secured;
2) one equity of the issuer (without voting rights) denomination.
(3) property investment fund, Closed one of the company's shares (without voting rights), directly or indirectly, must not exceed 25 percent of the total.
(4) All public domain stuff existing fund investments directly or indirectly shall not exceed 10 per cent of any such indicator: 1 the share capital of the issuer);
2 voting rights of the issuer) the total volume.
Article 67. Investments in the Fund investment certificates (1) investments in other funds of the Fund investment certificates must not exceed 5 percent of the Fund's assets.
(2) the contribution of the Fund to another fund investment certificates shall not exceed 10 per cent of the Fund assets of this other.
(3) the assets of the Fund may invest in other companies or the same with the one existing in the group other companies managed fund investment certificates only if all the following conditions are met: 1) the investment policy of the Fund is totally different;
2) this is provided for in the prospectus of the Fund;
3) Commission has given permission for such investment.
68. article. Investment banking term (1) investment banking term may only be made from a closed Fund.
(2) investment banking term may only be made in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania and the Organization for economic cooperation and development Member States, licensed banks.
(3) investment banking term may not exceed 25 percent of the Fund's assets in a closed, except when it is necessary: 1) the distribution of the Fund's assets due to the liquidation of the Fund;
2) risk reduction.
(4) the assets of the Fund, deposited in a bank, one term must not exceed 10 percent of the total assets of the Fund.
Article 69. Investments in immovable property (1) investments in real estate may be made only from a closed Fund.
(2) a closed property Fund may invest only in real estate, which is located in and is registered in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania or the Organisation for economic cooperation and development member countries.
(3) the resources of the Fund for the real estate in the land to the company's recordable. This real estate investment company may not alienate, pledge or bother with other things right without the consent of the custodian. The company handling the real estate, the law and the fund prospectus limits.
(4) the assets of the Fund may not invest in land in respect of which the permit has been received, and the related law.
(5) a separate real estate the third part of this article is also the meaning of one piece of land or adjacent land accommodate more real estate.
(6) governing the fund company itself made in real estate management, but the switch for it contract with a third party.
(7) investment in real estate can be done only if the society accepted the Commission of experts has rated real estate and investment property of the Fund does not exceed the value prescribed by the Commission experts. Conditions referred to in this paragraph shall apply also with regard to the agreement on land use law, the determination of the value and potential of this value later.
(8) the real property acquisition costs at the time of purchase shall not exceed 25 percent of the Fund's assets.
(9) the real property at the time of purchase shall not exceed a value that is greater than 15 percent of the value of the Fund.
(10) this article is part of the seventh and eighth restrictions be followed, starting from the fourth year after the establishment of the Fund.
(11) the Fund owned real estate with debts burdening is allowed if it intended to fund prospectus and conducted the daily economic activity. The total amount of such a burden must not exceed 50 percent of the market value of the object.
70. article. Rules for transactions with derivative securities derivative securities (1) of this Act, within the meaning of the options and Futures certificate.
(2) the possibility of the meaning of this law is the deal, which provides for the right, but not the obligation, to buy (purchase option) or sell (put option) the securities or exchange contract for the period prescribed in the contract price.
(3) future transaction is a transaction that has the obligation to buy or sell securities or exchange contract for the period prescribed in the contract price.
(4) transactions with derivative securities to a fund account may be carried out for the sole purpose of insuring against risk arising from fluctuations in the value of assets of the Fund, and at the same time be subject to the following conditions: 1) such transactions is provided in the prospectus of the Fund;
2) are allowed the publicly traded securities;
3) is possible accurate and objective evaluation of derivative securities.
(5) an investment firm shall invoice the Fund may not: 1) be the sales opportunities and purchase options transactions;
2) to Transact on derivative securities, if the result can be breached this statutory investment restrictions;
3) do business on derivative securities, if it is not covered by the Fund-owned securities or currency.
71. article. Exceeding investment limits (1) the statutory investment restrictions does not remove the exceeding the validity of the transaction in question, but the answer of the investment firm fund investors and third parties for losses incurred as a result of such activities, except in the second, fourth, fifth and sixth part in certain cases.
(2) the statutory investment restrictions may exceed six months after the establishment of the Fund and open 12 months after the establishment of the Fund closed.
(3) the second paragraph of this article shall not apply to foundations, the value of which exceeds 500 000 LVL.
(4) investment restrictions referred to in article 66 of this law, exceed for a period of up to six months, if it caused the overrunning of the investment firm no matter the circumstances, the right to use, share capital increase from retained earnings, the market value of securities and other similar reasons. To prevent limits being exceeded, in this case, the company must perform sales operations according to the principle of risk reduction.
(5) investment restrictions referred to in article 66 of this law in the second and in the fourth subparagraph, and article 67, second paragraph, committing investment to exceed, if at that time it was not possible to determine or calculate all quantities of securities issued or in which the value of the secured debts, or issued or outstanding contribution certificate or number value.
(6) companies will be obliged to inform the Commission of the contribution limits, as well as on measures to prevent it.
Chapter VII. Review of article 72. General provisions (1) the company makes investment fund accounting and annual and half-yearly reporting in accordance with this law, the law "on accounting", Latvian accounting standards and rules of the Commission.
(2) the provisions of this chapter apply to the public through its managed fund accounting and annual and half-yearly reporting.
(3) the annual and half-yearly reports must give a true and fair view of the Fund's assets, liabilities, financial position, revenues and expenses and the net asset movement during the reporting period.
73. article. The Fund's accounting records and preparation of report (1) the accounting records made by the fund company or its authorized person.
(2) each fund accounting records to be taken separately.
(3) the Fund's reporting period is usually one year, and it must coincide with the company's accounting year.
(4) the company shall draw up the Foundation's annual and half-yearly reports, the contents of which, the amount of information required and deadlines for the publication of this law and the regulations of the Commission.
(5) the Fund's annual and half-yearly reports shall be approved by the company's Board.
(6) the Fund's annual and half-yearly reports must be available to the public for all Fund stakeholders.
(7) the fund investors have the right to request and receive, free of charge the Fund's annual and semi-annual report.
74. article. Annual report of the audit of the Fund (1) the Fund's annual report is audited by an auditor appointed by the Board and approved by the society.
(2) the Commission shall adopt the list of Auditors allowed to perform audits of the Fund.
(3) For the purposes of this law, auditors can be licensed Chartered auditor in Latvia or other person to whom the Commission has granted the right to Fund financial statement audits.

(4) the annual report of the Fund auditor conducted the audit in accordance with international audit standards and in its opinion shall state whether: 1) companies produced annual reports of the Fund give a true and fair view of the financial position of the Fund, income and expenditure, net asset movement during the reporting period;
2) Fund annual report have been prepared in accordance with accounting standards and the Commission's rules on the financial accounts of the Fund;
3) information included in the annual accounts comply with the provisions of the prospectus of the Fund.
75. article. Fund information to be included in the annual report (1) the annual report of the Fund to include the following information: 1) net assets of the Fund on the part of the Fund and their comparison with the previous period;
2 report on the Fund);
3) custody report;
4) auditor, custodian of public and list of duties and responsibilities;
5) Fund of the calculation of return on investments for the reporting period;
the Fund's net assets 6) movement during the reporting period;
7) Fund investment portfolio position at the end of the reporting period;
8) Fund balance at the end of the reporting period;
9) significant changes to the Fund's assets summary of report period;
10) notes to the annual accounts;
11 fund essential accounting) methods of listing;
12) fund investors paid the revenue report.
(2) comparative figures are provided for all of the information contained in the Fund's estimates of income and expenditure for the reporting period, the Fund's net asset movement statement on the report period, report on the Fund's investment portfolio position at the end of the reporting period in relation to the percentage of the pie and the Fund balance at the end of the reporting period.
(3) the annual report of the Fund attached to the auditor's opinion.
(4) the Fund's annual and semi-annual reports of the information to be included in the form and amount of which shall be determined by the Commission.
(5) the Fund's semi-annual report, which can be audited, not prepared according to the same accounting methods and formats that are used in the annual accounts of the Fund. The half-yearly report content is determined by the Commission.
(6) the company shall provide its managed fund annual report, together with the auditor's opinion to the Commission not later than one month after the approval of the annual report and not later than four months after the end of the reporting year.
(7) the company's Board approved the Fund's half-yearly report shall be submitted to the Commission not later than two months after the end of the reporting period.
Chapter VIII. 76. Article monitoring. General provisions (1) the Commission shall monitor the functioning of society and a custodian under this law, law on securities ", the law" On securities market "and other laws and regulations.
(2) the supervision of the custodian of the Bank of Latvia made in accordance with the law of credit institutions, this law and other laws.
(3) 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.
77. article. The Commission's responsibilities and rights (1) the Commission has the duty to: 1) follow to corporations and custodian of the law;
2) publish the society and the Foundation's licensing, stop and other firms and custodian of the binding rules;
3) confirming the foreign stock exchange list, which officially quoted securities may be included in the assets of the Fund.
(2) the rights under this law, the law on the securities market Commission "and the law" on securities ".
78. article. 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 shall make public an internal check, free to consult all documents and information relating to 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 firm finds violations, he has the right to temporarily remove 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 examiner shall draw up a report on the results and the company's Board was presented. The report shall be signed by the Chairman of the Board.
Article 79. To the right of the Commission to obtain information, to the Commission, in accordance with the law has the right to: 1) in writing to request and receive from the company, the custodian, the Bank of Latvia, the Republic of Latvia enterprise register, public officials, but also the public in the event of bankruptcy of the liquidator or administrator for information about the 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.
80. 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 Executive Board, Governing Council or general meeting of shareholders, 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.
81. article. Restrictions on the right to deal with bank accounts (1) in cases where 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 banks and brokerage firms on the company or the Fund's cash flow and bank account balances and given written orders to banks for up to two weeks to limit the public's right to dispose of the company or the Fund's bank accounts.
(2) the banks referred to in the first subparagraph must fulfil orders immediately, as soon as they were received.
(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 Until the expiry of the period referred to in the account on which the order to restrict the public's right to act with them, may be exempted from the restrictions, subject to authorisation by the Commission.
Article 82. License license issued by the Commission to the public for an unspecified period of time.
83. article. The conditions of licence, the Commission issued a public licence, if the following conditions are fulfilled: 1) application and the documents comply with the requirements of the Act and the Commission's licensing rules issued;
2) the company meets the requirements of the law which raises the investment firms;
3) Council members, officers and shareholders meet the requirements of the law;
4) issued by the public license has not been revoked.
84. article. Licence documents (1) the founding members of society or society established the Executive Body shall submit to the Commission an application for the licence. The application shall be accompanied by: 1) the public statutes and documents confirming formation capital and its size;
2) certificate from the enterprise register of the Republic of Latvia and the company's last annual report, where existing company is transformed into an investment company, and a certificate from the tax authorities that the company has no tax arrears;
3) public stakeholders list, stating their name and surname, person code, education, positions that are held by this person in the past five years, and the job description relevant public and the terms of contracts signed, the legal entity indicating the name, registration number and members of the administrative organ, as well as the last annual report;
4) a list of shareholders, each shareholder number of shares and votes;
5) other Commission issued rules in licensing documents.
(2) the Commission has the right to require the company to clarify the documents and information submitted.
(3) If a decision on the issue of the license change in the first paragraph of this article contains the information or documents are amended, the company is obliged to immediately submit the new information to the Commission or the full text of this document with the amendments.
85. article. License issue (1) the Commission shall take a decision on the issue or refusal to issue a license for a month from the date of receipt of the application.
(2) On receipt of the day considered to be the day when all this law, submitted to the Commission by article 84 of the texts referred to in the first subparagraph or adjustments in accordance with the second subparagraph of article 84.
(3) the Commission shall issue the license within one week from the date of the decision granting the license, and only when you receive a document certifying payment of the State fees.
86. article. License expired license expires, if the company: 1) six months from the date of issue of the licence is not launched a licence;
2) terminates;
3) is attached to another investment firm.
87. article. Withdrawal of license (1) the Commission may by a reasoned decision to revoke the license issued to the public if: 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, Board members and officials do not comply with the requirements of the law;
4 the company systematically violating) fund prospectus or fund management regulations;
5) company ended after a court ruling;
6 the company declared insolvent);
7) activities contrary to the interests of the fund investors.
(2) Before the license cancellation the Commission written notice to the company of its violations and on the possible withdrawal of the licence. Expressing alarm, the Commission has the right to determine the term prevention, setting limits for the operation of the society or not. After this deadline the company is obliged to submit a report to the Commission on the measures taken and their results.
(3) the decision on the withdrawal of the licence or public warning, and deadlines for the correction of irregularities of the determination of the Commission shall notify the company in writing within three days from the date of the decision.
88. article. Liability (1) the Commission is empowered to impose a public penalty and custody of up to 400 minimum monthly salary for the following offences: 1) of the investment company or investment fund name illegal use;
2 3 of this Act) of the first subparagraph of article activity referred to by a person who is not an investment firm;
3 law and on that) on the basis of the provisions in Commission issued the document and news, as well as those not made submissions to the Commission within the time limits;
4) false message is submitted to the Commission or the public dissemination of such messages;
5) on the action, which violated the provisions of this law concerning the publication of the report;
6 the Fund's assets) posted and storage conditions;
7) on emissions, the units atpakaļpirkšan and take-back provisions;
8) about the fund prospectus for not making payments from the Fund's assets;
9) on the winding-up of the company or Fund order;
10) on non-reporting, finding the law, the prospectus of the Fund or the Fund's Management Charter, violation of the terms;
11) that do not provide a legal opportunity to become acquainted with the fund prospectus, the Fund's Management Charter and annual and half-yearly reports;
12) on the investment restrictions, except where the law permits such excess.
(2) the first subparagraph of article 1 and paragraph 2 of the Commission provided for in the liability shall also apply to other persons.
(3) payment of the fine does not release from other statutory responsibilities.
Transitional provisions 1. Up to the date of entry into force of a special law regulating the reorganisation of companies related to the meaning of this law: 1 the term "accession") understands the business of company reorganization process, in which the plug-in company (the company) joins other pre-existing company (company). As a result of adding plug-in company (the company) cease to exist without liquidation procedures;
2) "convergence" understands a reorganisation of the company (the company) the process by which a company (company a) merge with another firm (company), established a new company (the company). As a result of convergence of the converging enterprises (companies) that are fully included in the new enterprise (company), cease to exist without liquidation procedures;
3) "Division" means the reorganization of the company (the company) process, which divided the company (the company) transferred their belongings effectuated (company) or break in the form of separation. The acquiring company (the company) may be a pre-existing company (company), and encountered a company (company a): a) in the case of the divided company break (the company) and put to an end all the acquiring undertakings (companies), b) in the case of separation divided the company (the company) transferred part of its property for the effectuated (company) or more acquiring companies (companies), but continue to exist.
2. Public joint stock companies that the law made at the time of entry into force of this law, in article 3, the transaction should be terminated this operation, must be eliminated, to be transformed for the closed joint stock company or be reorganised at this point. This reorganization must comply with the following provisions: 1) a public limited company (hereinafter referred to as the company being acquired) may reorganize only when joining the investment company (hereinafter accepted company) that you want to add the company or part of the assets of the Foundation shall establish the closed Fund;
2) accession takes place on a contractual basis;
3) contract should provide that the parties, through a contract approved by the fund prospectus and the Fund's Management Charter, which must be added to the draft Treaty;
4) agreement both companies Executive a switch after the draft Treaty approved in plenary meetings of the two companies with the majority of the company's articles of association the decision about reorganization of that company;
5) contract, the fund prospectus and fund management regulations shall enter into force after their approval by the Commission, but not earlier than three months after the newspaper "Latvian journal" published in the communication on the accession and incorporation of the closed Fund, if the contract does not specify a later deadline for its entry into force;
6) where the Commission, motivating its decision not to approve the agreement, the fund prospectus and the Fund's Management Charter, the parties to the agreement to convene again on the amendment of the Treaty, or in the prospectus of the Fund management regulations of the Fund; the amended documents are to be submitted to the Commission for approval;
7) with the entry into force of the Treaty, all of the company being acquired rights and obligations over the accepted undertaking;
8) the entry into force of the Treaty is the Foundation of the company being acquired to exclude from the enterprise register of the Republic of Latvia;
9) custody agreement approved by the Commission;
10) after the date of entry into force of this agreement, establish the public accepted the closed Fund, in accordance with the Treaty, separating plug-in or part of the assets of an undertaking, establishment of day by the Fund becomes property of the Foundation;
11) accepted the company shall inform the Commission of the creation of the Fund, while submitting a report on the Fund's contribution to the establishment of the Fund, the structure of the day;
12) Commission shall record in the Fund without the emissions permit, if it is registered in the fund prospectus, fund administration and custody provisions of the Treaty;
13) accepted society may dispose of the property of the Fund established after the registration;
14) all shareholders of the company that he owned shares in proportion of the company being acquired are substituted for the Fund's investment certificates;
15) accepted the company within six months of the entry into force of the prospectus of the Fund of the day take necessary steps in accordance with the provisions of the Act to ensure compliance with this law, the Fund and the Fund's prospectus.
3. transitional provisions this law provided for the reorganisation of public limited company is not taxed in the Republic of Latvia established taxes and fees.
4. If the Fund's investments do not comply with this Act and the provisions of the prospectus of the Fund, the society established by the date of entry into force of the law, it is prohibited to conduct new emissions.
5. Persons not referred to in this law, the transitional provisions in paragraphs 2 and 6, and which, on the entry into force of this Act, this Act regulated activities carried out, but don't want to break the bank, this action will or should be consistent with this Act.
6. Public limited liability companies, which have received the license of the joint investment company activities, and build the Foundation of this license licence, within three months from the date of entry into force of the law must be registered in the Commission. In this case, the license remains in force.
7. Six months after the registration in the Commission of the transitional provisions referred to in paragraph 6:1) must obtain this law needs legal status, you need to create a governance structure and capital;
2 of this law and) according to the law "on privatisation certificates" regulation should be amended accordingly to fund investors purchased the investment structure of the invoice and the terms of the prospectus of the Fund, as well as other documents must be developed.
8. in accordance with the transitional provisions of paragraph 7 of the fund prospectus amendments enter into force without the consent of the investor of the Fund after three months from the date on which these amendments are published in the newspaper "journal".
9. each fund investor regardless of the original contract (listing) regulations within three months of the contract (the prospectus) amendment is published in the "journal" may require that the transitional provisions referred to in point 6 of the companies released his contribution. With refund requirements are met according to the original contract (the prospectus).

10. If the transitional provisions referred to in point 6 of the company's original investors concluded the Treaty provides for the responsibility for the company's obligations or transactions made to the investors of the Fund total invoice, or the recovery of property obtained on fund investors in the total invoice, these claims remain valid.
11. Article 9 of this law establishes the company name after the entry into force of this law, is allowed to use only those investment firms established or re-registered under this law.
12. the Fund's revenue sharing fund investors shall not be made until the Commission has issued the payment order regulatory rules.
13. the Commission shall, within three months after the promulgation of this law is approved and published the investment firm and the Foundation licensing policy. If the Commission has not approved this arrangement, the relevant cabinet regulations.
14. legislation relevant To the entry into force of existing monies in the Fund are kept in custody, according to the Bank of Latvia issued legislation on trust operations.
The law shall enter into force on 1 July 1998.
The law, adopted in 1997 by the Saeima on 18 December.
The President g. Ulmanis in Riga in 1997 on 30 December