The Saeima has adopted and the President promulgated the following laws: the law on the financial instruments market to make the law on the financial instruments market (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 2004, no. 2; 2005, 10, 14; 2006, nr. 14. No; 2007, 10, 22 no; 2008, 13, 14, 23 no; 2009, 7., no. 22; Latvian journal, 2011, no 16; 2012, 56, 100, 186. no; 2013, 142, 193. No.) the amendments are as follows: 1. Article 1: turn off paragraph 7, the word "Union"; turn off 22, 23, 24, 25, 26, 26.1, 26.2, 26.4 and 51; express the following paragraph 26.3: "263) the European Union's mother of the investment brokerage firm, an investment brokerage company, which is the European Union's parent body of the European Parliament and of the Council of 26 June 2013 Regulation (EU) no 575/2013 for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (hereinafter Regulation No 575/2013) article 4, paragraph 1, point 29;"; 28 points to express the following: "28) initial capital — capital that consists of one or more of the following elements that comply with Regulation No 575/2013 requirements for the first level of basic elements: (a)) equity shares and other capital instruments and the premium, b) previous years retained earnings or loss, c) other accrued income presented in the statement of comprehensive income, d) other reserves (e)) the current operating profit for the year;" believe the current text of article about the first part and add the article to the second and third subparagraphs by the following: "(2) the following terms in Regulation No 575/2013 used terms: 1) parent company — the term" parent "Regulation No 575/2013 article 4 paragraph 1 of section 15; 2) subsidiary company — the term "subsidiary" Regulation No 575/2013 4. Article 16 paragraph 1 subparagraph a; 3) mixed holding company — the term "mixed-activity holding company" Regulation No 575/2013 article 4 paragraph 1 of section 22. (3) in addition to the first and second terms referred to in Regulation No 575/2013 meaning is used in the following terms: 1) financial institution — Regulation No 575/2013 4. Article 26 paragraph 1 subparagraph a; financial holding company: 2) Regulation No 575/2013 4. paragraph 1 of article 20, subparagraph; 3) financial holding company of the mother of a Member State — Regulation No 575/2013 article 4 paragraph 1 of section 30; 4) mother's European Union financial holding company — Regulation No 575/2013 4. Article 31 paragraph 1 subparagraph a; 5) equity capital — Regulation No 575/2013 4. paragraph 1 of article 118. within the meaning of subparagraph. " 2. in article 3: Supplement 1.1 part with point 7 by the following: ' 7) Regulation No. 575/2013. "; Add to article 5.1 part as follows: "(51) non trading book positions in financial instruments in order to invest in keeping the credit institution or brokerage firm equity, is not considered a transaction with financial instruments execution on public credit institution or brokerage account." 3. in article 4: Add to the fourth paragraph of point 4, after the word "stop" with the words "or"; Add to fourth with 4.1 point as follows: "to exclude 41) transferable securities from a regulated market;"; to make 8 of the fourth part of the paragraph by the following: ' 8) to determine the investment brokerage company the obligation to maintain the same capital requirements in excess of Regulation No 575/2013 article 92 provides for minimum capital requirements; "; Add to fourth with 11, 12 and 13 as follows: ' 11) to determine the investment brokerage company executive or Board member or other person responsible for the infringement the person temporary ban it obligations under the investment brokerage company; 12) require investment brokerage company or person responsible for the infringement immediately broke this law, article 148 subparagraph, 15th; 13) give public notice of an infringement of the natural or legal person responsible for the substance of the infringement ". to supplement the article with a fifth by the following: "(5) in deciding on the application of penalties for persons who violated financial and capital market regulatory legislation, the Commission shall take into account any potential systemic irregularities." 4. in article 10, first paragraph: make point 2 as follows: "2) the impeccable reputation and professional experience, where the proposed acquisition will be managed as a result of the organizer or the regulated market of the Latvian Central Depository;"; Add to part with 2.1 as follows: "21) Council, if any, the Board and senior management that the proposed acquisition will be managed as a result of the investment brokerage firm, knowledge and professional experience match the requirements of this law and impeccable reputation;". 5. Turn off the fourth paragraph of article 28, the words "the Union". 6. Supplement article 70 with 4.1 part as follows: "(41) if the share buy-back offer is expressed in article 66 of this law in the case referred to in the first paragraph and the one atpērkam the share price is determined in accordance with article 74 of this law in the seventh part of this order, vendor shall in addition submit company estimated salvage value." 7. Add to the third subparagraph of article 72 of the second sentence as follows: "If the mandatory stock buyback offer is used in article 74 of this law in the seventh or eighth in the pricing methods, the Commission shall take a decision on the authorisation or refusal to make a bid to all 30 working days after this law referred to in article 70 according to the requirements of the laws and the documents prepared." 8. Supplement article 74 to the seventh, eighth, ninth and tenth by the following: "(7) where the Court has proposed that the legal protection process, stock buy-back price of the mandatory stock buyback offer is determined by dividing the company's liquidation value by the number of shares issued. Salvage value is calculated as the estimated value, which could be obtained by selling the company's assets, except for intangible assets that can be sold as separate assets. From the resulting values of the asset sales report costs and obligations of the company. The liquidation value of the Company Registry of property investment is included in the list of assessors property investment expert assessment is determined by the date when the State experienced circumstances that lead to an obligation to make a mandatory vendor share buy-back offer. (8) the Commission's request, the offeror shall have the right to repurchase shares of the mandatory offer set another stock buy-back price, which differs from the first paragraph of this article, if the price of the company's financial position contributed to the exceptional circumstances in which the stock buyback price fixed in accordance with the first paragraph of this article, is not commensurate with the value of the shares was a day when the circumstances that lead to the obligation of the vendor to make the minimum stock buy-back offer. This part of the first sentence in this case, the offeror shall submit to the Commission evidence as to the circumstances in which the stock repurchase price to be determined without regard to the first part of this article shares contained in the pricing principles. In the case referred to the value of the shares calculated in accordance with the first subparagraph of paragraph 3 is to be followed, using the data from the last available in the company's financial statements, which, if necessary, adjusted, taking into account the exceptional circumstances. (9) the Commission has the right to compulsory repurchase of shares on offer to fix another stock buy-back price, which is different from the first part of this article in the specified period, if the offeror has made a submission to the Commission on the stock buy-back offer by this law, in article 70, the time limit laid down in the first subparagraph. (10) if the Commission issues an administrative act, which establishes that the party in accordance with the provisions of this law have the obligation to make a mandatory stock buyback offer, but the person is not made, the person executing this obligation of the administrative act shall start on the date of entry into force. The following mandatory stock buyback offer one shares buy-back price is calculated in accordance with article 74 of this law in the first part of the procedures of the stock buy-back price period calculated from the date of issue of the administrative act. " 9. Replace the third subparagraph of article 83, the words "ls" with the word "Euro". 10. To supplement the law with article 99.1 as follows: "article 99.1. Central Depository rights to open a cash account (1) the Central Depositary of this Act 92. the second paragraph of article 1, 4, 5 and 7 above functions on its behalf, is entitled to open a cash account in the central bank of the Member State, if it provides such services as well as credit institution. Money in the account funds means the central depository there separated from their money. (2) the central depository provides its members with money account during the settlement operations requirements and obligations. (3) in the first subparagraph, these funds may not be used in central depository to satisfy the claims of creditors. This requirement also applies to When the central depository in accordance with the procedure prescribed by law recognised as insolvent. " 11. Supplement article 106.1 of the law with the following: "article 106.1. Provisions on investment brokerage company executive and a member of the Council and of the Council of the mandate of the members of the Executive Board of the total number of posts (1) determining the number of members of the Council and board posts the investment brokerage firm in Council, if any, or Board Member may be taking at the same time, take account of individual circumstances, as well as the investment brokerage firm, the volume and complexity. (2) the Size, internal organisation and the nature of the activity, in terms of volume and complexity of major investment brokerage firm and a Board member of the Council, except when it represents the Republic of Latvia, while not holding more than 1) one of the members of the Board of posts and two of the members posts; 2) four members of the Council's posts. (3) for the purposes of this article about one of the members of the Council or the Board posts are considered by the Council or the Executive Board posts: 1) one group of consolidation; 2) institutions that are part of the same Regulation No 575/2013 article 113, paragraph 7, of the conditions in accordance with the institutional protection scheme; 3) companies (including non-financial institutions) that investment brokerage firms have a significant interest. (4) for the purposes of this article, the Council or the Executive Board posts are not considered to be members of the Council or the Board of management posts in the society, enterprises and other organizations, whose activity is not for profit. (5) the Commission is empowered to authorize the investment brokerage firm Council or the Executive Board to take one additional post of Council members. (6) the Commission shall provide regular information to the European banking authority in accordance with this article, on the fifth of the permissions granted. " 12. Replace the fifth subparagraph of article 108, the word "Board" with the words "the Council, if any, and the Board". 13. Supplement article 109 to fifth the following: "(5) investment brokerage company, which has lost the right to hold financial instruments as a contribution to the provision of additional services, with their customers-owned property, subject to the requirements of section I of this law." 14. in article 111: turn off the first part of paragraph 4, the words "or long"; to supplement the article with the third part as follows: "(3) investment brokerage company that has annulled the license with your customers-owned property, subject to the requirements of section I of this law." 15. Supplement article 118 in the fifth, sixth, seventh and eighth by the following: "(5) For audit services and expert or fiduciary duties of detected violations of the laws or other facts that are at risk due to the investment brokerage firm obligations or continuity or investment brokerage firm clients ' interests or sworn auditor disclaims an opinion or opinion with caveats , sworn auditor shall immediately submit a written report to the Commission. While this report shall also be submitted to the investment management of the company, unless there are no compelling reasons not to do so. (6) the sworn auditor is obliged to immediately submit a written report to the Commission on the fifth of this article referred to the facts discovered, providing audit services to the client that the investment brokerage company links the close relationship of membership or by way of control, or the performance of such client or trust the expert tasks. (7) of this article, the fourth and fifth paragraphs of the provision of the information referred to in the Commission is not considered confidential disclosure and terms of sworn auditor about it not in civil liability. (8) investment brokerage company a month before it plans to pay a dividend, it shall notify the Commission. The Commission has the right to prohibit public investment to pay dividends if the dividends results in an investment brokerage firm does not abide by the law and directly applicable European Union legislation and limitations indicators that (level) affect the dividend payout. " 16. the title of chapter XI be expressed by the following: "chapter XI investment brokerage firm regulatory requirements" 17.  Express article 119.1 the following: ' article 119.1. General questions (1) this law, article 122 shall be binding upon the investment brokerage firm, covered by Regulation No 575/2013 as laid down in the fourth paragraph large exposures restrictions. This law, 121.1, 123.1 122.1, 122.2, 122.3 123.3, 123.4, 123.2, and 123.5 article is binding for the investment brokerage firm, which is the authority of Regulation No 575/2013. (2) for the purposes of this chapter, the term "host Member State" in Regulation No. 575/2013 used term. (3) the Commission shall have the right, in addition to this law and Regulation No 575/2013 requirements to identify other investment companies with regulatory requirements to reduce the risk of these companies and protect the interests of investors. " 18. off 121. article. 19. To supplement the law with article 121.1 of the following: ' article 121.1. Capital reserve requirements, restrictions on the distribution and conservation of capital plan investment firm license allows you to provide this law, article 3 of the fourth part 5 and 6 referred to investment services, are binding on the Institutions of the regulations in chapter IV of the law of conservation of capital reserve the capital reserve of the counter-cyclical role, global and systemic importance for the other institutions, the capital reserve the capital reserve of the systemic risk, the total capital reserve requirements, restrictions on the distribution and conservation of capital plan. " 20. Article 122 of the expression by the following: ' article 122. Investment brokerage company exposure limits (1) exposures to investment company shareholders or members, of which investment brokerage company has a significant interest, and those of the shareholders or members, natural persons, spouses, parents and children, an investment brokerage firm and the Council of the members of the Management Board, head of the internal audit service, risk Director for operational control of the conformity of persons responsible and the public Inspector, that person's spouse, parents and children as well as commercial companies in which these persons have significant interest, not to exceed a total of 15 percent of the investment in public equity, which is applicable to large exposures restrictions in accordance with Regulation (EC) no 575/2013 (2) the procedure for the determination of the amount of the exposures to in the first subparagraph, the persons referred to by the Commission. " 21. To supplement the law with 122.1 and 122.2 122.3 article, as follows: "article 122.1. Risk management and action plans (1) investment brokerage company formulate and implement prudent strategy, policies, procedures and systems that allow timely identify, evaluate, analyze, and manage credit risk, concentration risk, market risk, operational risk, interest rate risk in the trading book, not excessive risk and leverage other investment brokerage firm to significant risks. (2) investment brokerage company's strategies, policies, procedures and systems comply with the complexity and scope of its operations, as well as the investment brokerage firm Council (meeting of members or, if the Council has not created) acceptable risk level and are developed taking into account the investment brokerage firm systemic importance in each Member State in which it operates. (3) investment brokerage company is developing contingency plans to restore liquidity, and business continuity, as well as the measures necessary for the implementation. (4) the Commission shall determine the requirements for the investment brokerage firm's risk management and action plans for emergencies, to restore liquidity and ensure business continuity. Article 122.2. Recovery plan and management plan (1) investment brokerage company develops, maintains and restores its recovery plan to restore financial stability after its significant deterioration. (2) the Commission shall draw up an investment brokerage firm relief plans for their continuity and stability of the financial sector. (3) the Commission shall determine the requirements for the first paragraph of this article and the contents of the plan development. (4) the Commission may determine the reduced requirements referred to in the first paragraph of the recovery plan development or may not develop in the second part of that investment brokerage firm in the settlement plan if, after consultation with the Bank of Latvia has concluded that the investment brokerage firm bankruptcy, taking into account the investment brokerage company size, business model, linking with other investment firms and the financial system or other circumstances You can not threaten financial markets and other investment brokerage company stability or financing conditions. (5) the Commission shall timely notify the European banking authority, the investment brokerage firm recovery and management plans related to the conduct of meetings and the agenda. 122.3 article. Investment brokerage company benchmark portfolios of equity requirements calculation (1) investment brokerage company, which received permission to use internal access exposure or risk weighted capital requirement calculation, except permission to use internal approaches to operational risk capital requirements for the calculation, in addition to Regulation No 575/2013 defined computes risk weighted capital requirements or the European banking authority set benchmark portfolio or portfolios include exposures and financial positions. (2) the Commission, in consultation with the European banking authority shall be entitled to determine the benchmark portfolio or portfolios, which differs from the European banking authority established. (3) investment brokerage company shall prepare and submit, at least once a year the Commission for risk weighted capital requirements or calculations of the European banking authority set benchmark portfolio or portfolios include exposures and positions in financial instruments, and the first paragraph of this article in the calculation methodologies used in the explanation. (4) If the Commission has established the benchmark portfolio or portfolios, which differs from the European banking authority established, investment brokerage company shall prepare and submit, at least once a year the Commission shall report on individual risk weighted capital requirements or prescribed by the Commission in calculating the benchmark portfolio or portfolios include exposures and financial instruments. " 22. in article 123.1: replace the first paragraph, the words "and this law, the requirements of article 121" with the words and figures "in Regulation No. 575/2013 equity laid down requirements"; to supplement the article with the third part as follows: "(3) investment brokerage firm regularly reviews the strategy referred to in the second subparagraph and the procedures to ensure that they remain comprehensive and commensurate with the investment brokerage firm in the nature, scope and complexity." 23. in article 123.2: make the first paragraph by the following: "(1) investment brokerage company information in accordance with Regulation No 575/2013 eighth down the public on their website or choose the disclosure to other suitable medium or location."; Add to article 1.1 and 1.2 of the part as follows: "(11) the Commission is entitled to request that the first paragraph of this article are published more frequently than once a year, and to set deadlines for the publicity. (12) the investment brokerage company, which is the parent company, each year the public information on the legal structure of the group, as well as the actions of the management and organizational structure that supports this law, article 108 of the second subparagraph of paragraph 2, the second subparagraph of article 123.4 and 125 in the first paragraph of article 11 compliance requirements. "; to turn off the second and third. 24. Article 123.3 to express the following: ' article 123.3. Investment brokerage company to cover the risk of insufficient level of capital maintenance (1) investment brokerage company that is neither registered in the Republic of Latvia and the consolidated supervision of the parent company, or its subsidiaries, as well as any investment firm which is not subject to consolidated supervision under Regulation No 575/2013, article 19 of this law and article 123.1 of the execution of the individual. (2) investment brokerage company, which is exempted from compliance with the requirements of equity consolidation at group level in accordance with Regulation No 575/2013, article 15 of this law, the requirements of article 123.1 of the individual. (3) the Republic of Latvia of the parent investment brokerage company article 123.1 of the Act, the requirements of the consolidation at group level. (4) investment brokerage company that is the parent of the Republic of Latvia or of the financial holding company of the Republic of Latvia parent mixed financial holding company subsidiary, this Act comply with the requirements of article 123.1 consolidation at group level. If the parent financial holding company or a mixed financial holding company controls more than one body, this part shall apply only to the investment community, to which, in accordance with article 142 of this law are covered by the consolidated supervision. (5) if the investment firm is the parent of the Republic of Latvia, the investment community, the Republic of Latvia on financial holding company of the mother or the mother of the Republic of Latvia to the mixed financial holding company or a subsidiary of its holding company, the parent of the financial or its parent holding company has a mixed financial subsidiaries established in a foreign company, which is an institution, a financial institution or an asset management company or which holds a participation in those institutions or companies, such investment brokerage company article 123.1 of the Act, the requirements of the subkonsolidēt. " 25. the express article 123.4 as follows: "article 123.4. Investment brokerage company plans, policies, procedures, and application level mechanisms (1) investment brokerage company, which is not exempt from the regulatory requirements of the individual in accordance with Regulation No. 575/2013, article 7 of this law, article 122.1 and 122.2, 122.3 124 first paragraph of article 11 and of paragraph 1.2, 1.3, 1.4, 1.5 and 1.6, the requirements of the individual parts. (2) investment brokerage company, which is subject to consolidated supervision under Regulation No 575/2013 the first part of the requirements of title II of this law, article 122.1 and 122.2, 122.3 124 first paragraph of article 11 and of paragraph 1.2, 1.3, 1.4, 1.5 and 1.6, the requirements of part of the consolidation at group level or subkonsolidēt and ensure that its internal control system is consistent, well integrated and implemented in all subsidiary companies including those that are not included in the consolidation group in accordance with Regulation No 575/2013 the first paragraph of title II requirements, as well as provide all necessary monitoring data and information. Authorisation by the Commission, the investment brokerage company may not follow this law, article 122.1 and 122.2, 122.3 124 first paragraph of article 11 and of paragraph 1.2, 1.3, 1.4, 1.5 and 1.6 parts requirements for foreign subsidiaries, which are not included in the consolidation group under Regulation No 575/2013 first requirements of title II of part, if it can be shown that these requirements do not correspond to subsidiaries of foreign registration law. " 26. To supplement the law with article 123.5 as follows: "article 123.5. Regulation No 575/2013 for the selection, review and reporting procedures, makroprudenciāl or systemic risk assessment and action (1) Regulation No 575/2013 the expected choice for prudenciāl and the determination of the transitional period for the application of the provisions of this regulation by the Commission. (2) the Commission may set the individual events related to the reporting, report preparation and submission rules and investment brokerage firms in the preparation of the information required, a procedure for the provision of the necessary authorisation procedures, if not defined by the European Commission. (3) the Commission, under Regulation No 575/2013, can identify the areas of regulatory requirements more stringent than those laid down in this regulation. " 27. Article 124: replace the first subparagraph of paragraph 1, the words "the law" with the words and figures "Regulation No 575/2013; Add to article 1.1, 1.2, 1.3 to 1.4, 1.5, 1.6 and 1.7 subparagraph by the following: "(11) the Commission lays down the requirements for the investment brokerage firm internal control system. (12) the investment brokerage company, for which the license allows this law, article 3 of the fourth part 5 and 6 referred to investment services, its officers or employees whose professional activities have a material impact on the risk of investment brokerage company profile: 1) ensure that remuneration policies and practices that meet the prudent and effective risk management and promote, but do not encourage risk-taking over the investment brokerage firm in a specific level of tolerated risk taking; 2) specifies the variable part of the remuneration so much that it exceeded the official or employee of the reporting year specified in the non-variable component of remuneration, except in compliance with this article, 1.3, 1.4, 1.5 and 1.6, the conditions referred to in part. (13) investment brokerage company (participant) of the shareholders meeting in a separate decision for officials or staff whose professional activities have a material impact on the company's investment risk profile, you can specify the variable part of the remuneration to the extent that they exceed — but not more than twice the official or employee of the reporting year specified in the fixed part of the remuneration. (14) investment brokerage company (participant) of the shareholders meeting for officials or staff whose professional activities have a material impact on the company's investment risk, the decision about the variable part of the remuneration that exceeds a particular official or employee of the reporting year specified in the variable part of the remuneration will not be adopted on the basis of the investment brokerage company has produced a draft decision, containing the following wage determination of the variable part of the grounds indicated in the official or staff , positions held and functions as well as to assess the impact of the decision on the investment brokerage company's ability to maintain its stable operation the necessary equity. The decision shall be taken with at least 66 percent of the voting shares (share) majority, provided that the investment shareholders (participants) of the meeting are represented at least 50 per cent of voting shares (share), or with at least 75 percent of the voting shares (share) majority, provided that the investment shareholders (participants) are represented at the meeting for less than 50 per cent of voting shares (part), if in compliance with legislative requirements or investment brokerage company in the terms of reference of such shareholder (member) a meeting is valid. Investment brokerage company officers or employees who also are voting shares (share), the holder shall not take part in the investment of shareholders (participants) meeting in the adoption of the decision relating to the determination of their remuneration. (15) the investment brokerage company without delay, but no later than five working days in accordance with the requirements of part 1.4 prepared a draft decision for submission to the shareholders (participants) to electronically submit to the Commission, this draft decision and evidence that the respective officers or staff whose professional activities have a material impact on the company's investment risk profile, remuneration determination of the variable part of the amount in excess of the reporting year specified in the variable part of the remuneration does not without prejudice to the investment community's ability to continue to comply with this Act and the regulations No. 575/2013 requirements, particularly the requirements of equity. (16) the investment brokerage company without delay, but no later than five working days after this article referred to in paragraph 1.3 of the investment brokerage company (participant) of shareholders meeting decision, it shall submit to the Commission electronically. (17) the Commission set out the requirements of this article 1.2. the remuneration referred to in paragraph policy and practice in relation to the investment of public officials or staff whose professional activities have a material impact on the company's investment risk profile. " 28. To supplement the law with article 137.1 as follows: "article 137.1. Supervisory authority (1) the provision of investment services within the limits of its competence, the Commission monitored its licensed market Organizer and the central depository. (2) the Commission shall monitor the market Organizer and central depository of process monitoring compliance with the requirements of the law. " 29. Article 138 of the expression by the following: ' article 138. Investment service providers applicable supervisory action if the Commission finds that the investment service provider does not comply with, or the Commission has reason to believe that the 12 months of activities referred to in this article, the initiation of the implementation of the moment will not this law, or other investment brokerage firm regulatory law, directly applicable to the institutions of the European Union issued a law or regulations issued by the Commission of the provisions or decisions, or if the investment brokerage firm undermines the said requirements The Commission, in addition to the financial and capital market Commission, the law and other rights laid down in this law shall be entitled to directly or in collaboration with other authorities to implement one or more of the following operations: 1) contribute to the brokerage company management institutions, their leaders and members of binding written guidance necessary to remedy such a situation; 2) require from any person information about the activities of the financial and capital markets, as well as invite any person to attend and give the Commission information onsite; 3) acquainted with the documents required for the tasks and functions of the Commission; 4) to request and receive from the financial instrument for the operators phone listings and other data records; 5) require that the financial instruments market participants to stop any actions that are inconsistent with the requirements of this law; 6) to stop the trading of financial instruments; 7) limit the investment firm or credit institution authorised to provide investment services or hold financial instruments; 8) to impose investment company with its obligation to reduce transactions and services associated risks. " 30. in article 139: Supplement to article 1.1 and 1.2 in part as follows: "(11) the Commission shall draw up each year an investment brokerage firm monitoring inspection scheme, indicating: 1) financial and capital market Commission Act, this law and other statutory functions and duties of the Commission for the carrying out of the measures envisaged and the necessary resources; 2) planned monitoring measures applicable to: (a)) investment brokerage firms that make up this article 11.3 parts 4 and 5 of this stress test results or that the assessment carried out by the Commission in accordance with this article the ninth part, points to the risks that threaten the fundamental investment brokerage company's financial stability, or to this law, directly applicable European Union legislation issued by the institution or the regulations issued by the Commission for infringement of the provisions of the , b) investment brokerage firms that pose a systemic risk to the financial system, c) other investment brokerage firms in the view of the Commission; 3) investment brokerage company, which intended to establish increased monitoring, and measures applicable to them; 4) investment community on-the-spot checks, the plan showing separately the planned face-to-face validation of the investment brokerage company subsidiaries in other Member States, the investment brokerage firm subsidiary companies and investment brokerage company, which is the parent company of the financial holding company or a mixed financial holding company, financial holding company or a mixed financial holding company or of another subsidiary company. (12) If, in accordance with this article the ninth part of the assessment shows the need arises, the Commission shall be entitled to take the following measures: 1) increase investment brokerage firms on-the-spot checks, the number or frequency; 2) to designate the person empowered to constantly be in the investment brokerage company; 3) require investment brokerage company submit additional reports or reports more frequently; 4) perform investment brokerage company operational, strategic or business plan for additional or more frequent checks; 5) to make the target inspections to control certain risks, which is the expected accession. '; to make the ninth subparagraph by the following: "(9) the Commission shall examine the investment brokerage firm strategies, procedures and measures it implemented to comply with this law, other laws, directly applicable European Union legislation issued by the institution and the Commission issued decisions, regulations and rules, as well as evaluate: 1) investment brokerage firm to right and possible risks; 2) according to the guidelines of the European banking authority and the European systemic risk Board's recommendations made in the evaluation of systemic risk in the identified risks that investment brokerage firm poses to the financial system; 3) risks identified in the stress test process in light of the operations of the (business) volume, diversity and complexity. " to replace the tenth paragraph, first sentence, the word "the" with the words "that these checks and"; adding to the tenth part of the second sentence, after the word "information" with the words "at least surveillance audit program includes investment brokerage firms"; make the eleventh subparagraph by the following: "(11) on the basis of the checks and assessment, the Commission shall consider whether the investment brokerage firm strategy, procedures and measures to ensure adequate risk management and investment companies or equity is sufficient for the operation and alleged risks inherent."; Add to article 11.1, 11.2, 11.3, with 11.4, 11.5, 11.6, 11.7, 11.8 and 11.9 part as follows: "(111) the Commission shall inform the European banking authority of this article ninth, tenth and eleventh, part inspection and organisation of the evaluation process. (112) the Commission shall immediately inform the European banking authority of investment brokerage firms that have been identified as systemically important in the assessment referred to in this article. (113) the Commission this article ninth part of the assessment referred to in addition to the credit risk, operational risk and market risk assessment evaluated at least: 1) investment brokerage company management, corporate culture and values, the Council, if any, and the Board members ' ability to carry out their responsibilities; 2) investment brokerage company's business model; 3) systemic risk assessment in accordance with paragraph 9, subparagraph; 4) if investment brokerage company received permission to use an internal model of credit risk for calculating capital requirements, in accordance with Regulation No 575/2013 requirements of the stress test results; 5) if investment brokerage company received permission to use an internal model to the market risk capital requirements, calculated, in accordance with Regulation No 575/2013 requirements of the stress test results; 6) investment public exposure to concentration risk and its management including compliance with Regulation No 575/2013 requirements relating to large exposures restrictions; 7) investment brokerage company in the geographical distribution of exposures; 8) impact of diversification effects and their inclusion in the risk measurement system; 9) the possibility that investment firm may incur significant loss not trading book exposure to interest rate risk, and considerations about the possible emergence of such damage; 10) investment brokerage company's exposure to the risk of excessive leverage; 11) other investment brokerage firm to significant risks. (114) the Commission at least once a year, investment brokerage company testing, stress that take into account the results of the assessment carried out in accordance with the requirements of part 9. Stress test methodology complies with the European banking authority established by the guidelines. (115) if the Commission finds that the investment company do not comply with, or the Commission has reason to believe that in 12 months from this article 7.3, part of the initiation of application of the measures will not this law or regulation no 575/2013 requirements, the Commission shall require the investment brokerage company timely troubleshooting carry out the appropriate necessary measures. To this end, the Commission may apply any part of this article 7.3 of these measures. (116) the ninth part of this article in this assessment, the Commission may apply the same or a similar approach to investment brokerage company with a similar risk profile (like the business model or the geographical distribution of exposures or other similar approach), which are or may be subject to similar risks or which cause or may cause similar risks to the financial system. (117) in order to apply this article ninth and 11th, as well as Regulation No 575/2013 requirements, the Commission is entitled to request the investment brokerage company: 1) maintained a higher level of equity, than laid down in Regulation No 575/2013, which increased the total capital reserve requirements, calculated in accordance with the law of credit institutions, 35.23, 35.24 and 28.50 35.22 article to cover their investment brokerage company for the operation of the right and the possible risks and their elements not provided for in Regulation No 575/2013; 2) enhances your strategy, procedures and measures to be taken, this law, article 122.1 and 122.2 123.1 124 first paragraph of article 11 of requirements; 3 develop a plan) of this Act, other legislation, directly applicable to the institutions of the European Union issued laws and regulations issued by the Commission of rules compliance, identifying performance measures included in the plan deadlines; 4) equity purposes apply special provision or active recognition and valuation policies; 5) narrows or restricting commercial activities, operational or institutional network, renounce activities that unreasonably threaten its stability; reduced their activities, products or the operation of the systems set up right risks; 6) lays down the limit of the officers and employees of the variable remuneration, expressed as a percentage of net revenue and investment brokerage firm allows you to maintain a solid capital base; 7) directs profit after tax equity strengthening; 8) is reduced or not make a distribution of profits or interest payments to its shareholders (participants), the first level of the additional capital instruments included in the members or holders, if it does not cause non-performance; 9) provide additional or more frequent reporting reports, including reports about investment brokerage company's capital and liquidity positions. (118) the Commission require the investment brokerage firm followed this article 7.3 paragraph 1 of part a requirement of at least the following situations: 1) investment brokerage company has not adhered to this law, or 124 123.1 122.1. the first paragraph of article 11 to the requirements of paragraphs or in Regulation No 575/2013 under certain large exposures restrictions; 2) has identified the risks or the risk elements, which are not covered under Regulation No 575/2013 capital requirements laid down or total capital reserve requirements; 3) has reason to believe that other administrative measures alone will not be sufficient to acceptable limits under the enhanced investment structure, processes, mechanisms and strategies; 4) capital requirements is not sufficient because the investment brokerage company, making the trading book position value adjustments are not taken into account the possibility to sell in a short time or to limit the risks associated with these positions without significant loss of market conditions or a functioning investment brokerage company that received permission to use internal models for the calculation of capital requirements, no longer meets the following conditions of licence; 5) there are reasonable grounds for believing that an investment brokerage firm risks inherent to the valued too low, although it has complied with Regulation No 575/2013 and the requirements of this law; 6) investment brokerage company has received permission to use an internal model correlation trading book capital requirements calculated, but the reports filed show that stress test results significantly exceeded in accordance with the internal model to calculate capital requirements. (119) on the basis of the assessment carried out in accordance with the requirements of this article, the Commission shall evaluate whether the identified equity requirements in addition to those required for the investment brokerage firm for the operation of the existing and potential risks, taking into account: 1) in accordance with this law, the requirements of article 123.1 investment brokerage companies carried out qualitative and quantitative of the assessment results; 2) in accordance with this law, and article 124 article 122.2 from the first paragraph of point 11 requirements create investment brokerage company internal control system, as well as the recovery and management plans; 3) in accordance with the requirements of part 9 of the Commission the results of the assessment; 4) systemic risk assessment. " turn off the twelfth; adding to the thirteenth part after the word "procedures" with the words "corresponding to the European banking authority guidelines"; make part of the fourteenth as follows: "(14) If the thirteenth part of this article that suggests that the calculation of investment brokerage company's economic value will decrease by 20 or more percent of equity due to the sudden and unexpected changes in interest rates of 200 basis points or other European banking authority guidelines specific changes, the Commission requires that investment brokerage company shall take measures to ensure the conformity of the non-equity trading book exposure to interest rate risk."; to supplement the article with the fifteenth, sixteenth, seventeenth, and eighteenth in the following wording: "(15) the Commission, in making such an investment brokerage firm, which has received permission to use internal risk-weighted value of the approach or the calculation of capital requirements for credit institutions Act apply to 105.3 and 105.4 article. (16) the Commission will apply the requirements of this article individually and consolidation at group level or subkonsolidēt in accordance with Regulation No. 575/2013 the first part of section II of the application requirements. If the investment brokerage company is exempted from compliance with the requirements of equity consolidation at group level in accordance with Regulation No 575/2013, the requirements of article 15, the Commission that investment brokerage company of this article ninth, tenth, eleventh and 11.2 requirements apply to individual parts. (17) this article ninth, tenth, eleventh, 11.1, 11.2, 11.3, 11.4, 11.5, 11.6, 11.7, 11.8, 11.9, the thirteenth fourteenth fifteenth, sixteenth, and the part attributable to the investment brokerage company, which is the authority of Regulation No 575/2013. (18) the Commission shall inform the European banking authority referred to in this article the Commission decision-making principles. " 31. in article 139.1: replace the second subparagraph of paragraph 1, the word "payment" by the words "payment, clearing"; to replace the tenth paragraph, the words "central bank or other monetary systems and the competent authority responsible for the supervision of the authorities of host Member States" with the words "the European system of central banks include central banks, the European Central bank and the European systemic risk Board". 32. To supplement the law with article 141.1 as follows: "article 141.1. The remuneration policy and practice related to information gathering (1) the Commission shall collect the remuneration policy and practice related information that investment brokerage firms that license allows you to provide this law, article 3 of the fourth part 5 and 6 referred to investment services, published in accordance with Regulation No 575/2013 requirements, as well as the information that these investment firms have provided in accordance with this law, article 124 part 1.6 of and evaluate remuneration trends and practices. That information, the Commission shall submit to the European banking authority. (2) the Commission, with the interval of 1 million euro, collect information that investment brokerage firms that license allows you to provide this law, article 3 of the fourth part 5 and 6 referred to investment services, is published in accordance with Regulation No 575/2013 requirements on their own officials and the number of employees who the remuneration in the reference year is equal to or greater than eur 1 million, including the details of such officers and employees of their duties, the scope and the main elements of remuneration. That information, the Commission shall submit to the European banking authority. " 33. in article 146: Add to fourth with 5, 6, and 7, paragraph by the following: "5) the national authorities or bodies that are required to monitor the financial stability of Member States using makroprudenciāl framework; 6) reorganization of bodies or public authorities, the aim of which, in accordance with the laws and regulations to carry out the reorganization, as well as protect financial stability; 7) contractual or institutional customer protection system. "; to make a fifth by the following: "(5) the provisions of this article shall not preclude a Commission to provide limited accessibility information for the European Securities and markets authority, a European systemic risk Board, the European banking authority, the European insurance and occupational pensions authority, the Bank of Latvia, the central banks of Member States and other institutions responsible for the payment, clearing and settlement systems monitoring, if they need their own statutory functions as well as publish, in accordance with the requirements of the supervisory authorities, the stress test results. " 34. Article 147: put the name of the article as follows: "article 147. The Commission's obligation to provide information to the European Commission, the European Securities and markets authority and the European banking authority "; to supplement the article with the seventh and eighth by the following: "(7) the Commission shall inform the European banking authority of the decision taken in the context of article 148 of the Act referred to in the fifteenth and the appeals process. (8) the Commission shall inform the European Commission, the European banking authority and the European Securities and markets authority of laws and regulations governing investment brokerage company and activity in the Republic of Latvia. " 35. Express article 147.3 as follows: "article 147.3. Payments to finance the activities of the Commission (1) for external credit assessment institutions (rating agency) registration and supervision Commission is financed under Regulation No 1060/2009 on the set and in order. (2) investment brokerage company paid to the Commission for funding its activities up to 1 percent of the investment including brokerage company average gross revenue in the quarter, but not less than euro 2845 year. (3) the operator of a regulated market shall be paid to the Commission for funding its activities up to 2 percent of its business including average gross revenue in the quarter, but not less than euro 7114 year. (4) the depositary shall pay to the Commission for funding its activities up to 2 percent of its transactions, including average gross revenue in the quarter, but not less than euro 7114 year. (5) the Commission shall issue regulatory provisions on the second, third and fourth part payment calculation and reporting procedures.
(6) in the second, third and fourth payments referred to in the following month of the quarter, the 30th. (7) For the second, third and fourth part of that payment or remittance missed the full calculation not of money 0.05% of the unpaid amount for each delayed day. (8) payments referred to in this article is included in the Commission's accounts in the Bank of Latvia. " 36. in article 148: turn off the twelfth; make part of the fourteenth as follows: "(14) if the financial instruments market participant or other person who is bound by the applicable directly to the institution of the European Union legal acts issued by the markets in financial instruments (except Regulation No 575/2013), it does not follow, the Commission has the right to speak to the person concerned or to impose a fine. Legal entities impose fines of up to 142 300 euro, natural persons-up to 57 000 euro. "; to supplement the article with the fifteenth part as follows: "(15) if the investment firm does not comply with this law, and article 124 article 122.2 from the first paragraph of point 11 of the law of credit institutions, 35.26, or 35.28 35.27 article or regulation no 575/2013 28, 52. or article 63 requirements for payments to equity holders of the instrument, Regulation No 575/2013 article 99, paragraph 1 of article 101, paragraph 1 of Article 394.- , 395, 405 article, article 415. Article 1 and 2, article 430, 431. Article 1, paragraphs 2 and 3 or of article 451, repeatedly or persistently does not comply with Regulation No 575/2013 412. Article, take actions that result in a breach of the legislation in relation to criminal money laundering and terrorist financing prevention or investment brokerage company executive and Council member does not meet the requirements of article 106.1 of the law The Commission is entitled to apply for one or more of the following penalties: 1) make a public statement, indicating an infringement of the natural or legal persons responsible, and the nature of the infringement; 2) require an investment brokerage firm or a person responsible for the infringement shall immediately cease the activities concerned; 3) determine the temporary ban on investment brokerage company executive or Board member or other natural person responsible for the offence, to perform the duties devolved investment brokerage company; 4) impose a legal person a fine up to 10 percent from the previous fiscal year's net income the amount corresponding to the amount to which, in accordance with Regulation (EC) no 575/2013 is used to calculate the operational risk capital requirements according to the KPI approach. If 10 percent of the previous fiscal year's net income, calculated in accordance with the first sentence of this paragraph, is less than 142 300 euro, the Commission is entitled to impose a fine of up to 142 300 euro. If the legal person is the parent company of subsidiary company in the previous financial year's net income amount matches the amount in accordance with Regulation (EC) no 575/2013 is used to calculate the operational risk capital requirements in accordance with the fundamentals of the approach based on the extreme parent company in the preceding financial year is reported in the consolidated financial statements; 5) impose for infringement of the responsible natural person a penalty of up to five million euro; 6) impose fines up to earned income as a result of an irregularity or to prevent possible damages to approximately double. " 37. To supplement the law with article 150 the following: ' article 150. Penalties for disclosure of information (1) the Commission, on penalties, in the persons of this law applied to 148 in the fifteenth article referred to violations, on its website, giving details of the administrative act issued and accepted the challenge to the ruling. (2) the first paragraph of this article, the Commission, the information can be made public without identifying the person, if, after the preliminary assessment, finds that the disclosure of personal data for which an appropriate sanction or measure is disproportionate or natural or legal persons data disclosure may endanger the financial stability of the market or the conduct of the criminal proceedings initiated or cause disproportionate damage to the parties involved. (3) If it is expected that this referred to in the second subparagraph of article circumstances reasonable period may expire, the first paragraph of this article on the publication of the information may be postponed to the following period. (4) in accordance with the procedure laid down in this article is on the Commission's website information is available for a period of five years from the date of insertion. (5) the Commission shall inform the European banking authority of the penalties imposed on this law, article 148 of the fifteenth paragraph of irregularities. " 38. To supplement the law with the title I by the following: "(I) section with the customer-owned property investment brokerage company winding up and bankruptcy case Article 151. Handling client funds (1) investment brokerage company the liquidator or administrator invite investment brokerage firm customers get its holdings in existing funds and agree on a procedure for the receipt. Written notification of investment brokerage company the liquidator or administrator shall send to each customer, as well as published in the media and in the Official Gazette of the "journal". (2) funds, which are investment firms to clients is not removed, the investment brokerage company the liquidator or administrator, concluding a written contract, shall be deposited in the same registered in the Republic of Latvia for the designated credit institution. Written notice of the transfer of funds to a credit institution, an investment brokerage company in possession of the liquidator or administrator shall immediately send to each customer, as well as published in the media and in the Official Gazette of the "journal". (3) the fee for the credit institution investment brokerage firm customer cash deducted according to the credit institution's storage price list from the cash amounts that customers deserve. (4) where an investment brokerage firm client in ten years from the time when the funds transferred are not removed by the credit institution, the funds owed to it, it loses the right to claim them. The funds, which are due to the investment brokerage firm's customers and for which barred, agree to the State as abandoned property. (5) After the conclusion of a storage contract with the credit institution investment brokerage company the liquidator or administrator shall submit to the Commission information on the credit institution, which funds deposited, and investment brokerage company's list of customers, giving each customer identification data and the amount of money owed to it. (6) investment brokerage company the liquidator or administrator after completely ended its commitment to investment brokerage firm clients, shall submit to the Commission information on termination of the fact. 152. article. Handling client financial instruments (1) investment brokerage company the liquidator or administrator invite investment brokerage firm customers get its holdings of existing financial instruments and to agree with them on receipt of order. Written notification of investment brokerage company the liquidator or administrator in writing sent per customer, as well as published in the media and in the Official Gazette of the "journal". (2) financial instruments investment brokerage firm customers not removed, investment brokerage company the liquidator or administrator a written contract may be transferred to any holding in the Republic of Latvia, the credit institution or other registered investment company. Written notice of the transfer of financial instruments credit institution or other public investment in storage investment brokerage company the liquidator or administrator shall send to each customer, as well as published in the media and in the Official Gazette of the "journal". (3) the fee for a credit institution or investment firm to the investment public holding of client financial instruments is deducted according to the credit institution or investment firm's price list from investment firms to clients when they travel requirements for the financial instruments, and of the financial instruments belonging to them. (4) where an investment brokerage firm client in ten years from the time that the financial instruments deposited the credit institution or other investment brokerage firm is not removed by the financial instruments that it's supposed to, it loses the right to claim them. Financial instruments, which are eligible for investment firms to clients and for which barred, agrees to the State as abandoned property. (5) After the conclusion of the contract of transfer to another credit institution or investment firm investment brokerage company the liquidator or administrator shall submit to the Commission information on the credit institution or investment firm for which the financial instruments were transferred, and investment brokerage company's list of customers, giving each customer identification data and the identification of the financial instruments and the number that it's due. (6) investment brokerage company belonging to customers of financial instruments for which a transfer to another credit institution or investment firm in the holdings of the investment brokerage company the liquidator or administrator has entered into an agreement, it may be disposed of by public auction. The auction, organised and its rules in the development of investment brokerage company the liquidator or administrator. (7) upon disposal of financial instruments auction investment company liquidator or administrator invite investment brokerage firm clients lodge a claim for the cost of funds pursuant to article 151 of this law in the handling of client money. (8) investment brokerage company the liquidator or administrator after completely ended its commitment to investment brokerage firm clients, shall submit to the Commission information on termination of the fact. " 39. transitional provisions be supplemented with 49 and 50 as follows: "49. This law, article 1, paragraph 28 referred to in" c "other accrued income presented in the statement of comprehensive income, including initial capital from 1 January 2015 in accordance with the Commission's specific conditions of the transitional period. 50. This law article 124 1.2 parts of requirements apply to the variable part of the remuneration determined by no later than 2014 second-half performance, and during the period in question, not the variable part of the remuneration irrespective of the employment contract or the date of conclusion of the contract of mandate. " 40. Add to the informative reference to directives of the European Union with 30 points as follows: "30) of the European Parliament and of the Council of 26 June 2013 Directive 2013/36/EU on access to credit and the credit institutions and investment firms for the monitoring of the prudenciāl, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and 2006/49/EC. ' The Parliament adopted the law in 2014 on April 24. The President a. Smith in Riga 2014 on May 14.