The Amendments To The Law On Credit Institutions

Original Language Title: Grozījumi Kredītiestāžu likumā

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
The Saeima has adopted and the President promulgated the following laws: the law of credit institutions to make the law of credit institutions (the Parliament of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1995, nr. 23; 1996, 9, 14, 23 no; 1997, no. 23; 1998; 2000, no. 13, no. 13; 2002, 10, 23; 2003, nr. 14. No; 2004, 2, 12, No 23; 2005, 13, 14, 15 no; 2006; 2007, nr. 7, 12 no; 2008 , 14, no. 23; 2009, 6., 7., 17, no. 22; Latvian journal 2010, 23, 51, 160. no; 2011, No 4; 2012, 50, 56, 92 no; 2013, 61, 106, 193. No.) the following amendments: 1. Replace the entire law, the words "home internet" (the fold) and "home internet" (fold) with the words "Web site" (fold). 2. Replace the entire law, the words "supervisory authority" (the fold) with the words "supervisory authority" (the fold). 3. Article 1: turn off 1., 7., 10., 12., 11.2, 11.4, 11.7, 11.8, 12, 15, 16, 18, 19, 20, 21, 40, 43, 46, 47, 49, 57 and 60; Express 11.1 points as follows: "a parent credit institution in a Member State 111) a credit institution which is the parent body of the Member State 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 referred to as the EU Regulation No. 575/2013) article 4, paragraph 1, point 28;"; to make this version 11.3: "113) the European Union's parent credit institution, a credit institution which is the parent body of the European Union EU Regulation No 575/2013 4. paragraph 1 of article 29 paragraph;"; Add to 11.5 points after "holding company" with the words "registered in the Republic of Latvia or mixed financial holding company"; Add to 11.6 points after "holding company" with the words "or other registered in the Republic of Latvia on financial holding company" mixed; make 36 point "a" the following: "(a)), the Council of the credit institution's shareholders and Board members, the internal audit service's Manager, risk manager, compliance control of the operation and a company controller, as well as that person's spouse, parents and children;" Add to article 62, 63, 64 and 65. point as follows: "62) internal access, the EU Regulation No. 575/2013 for method, model or another internal approach, which the credit institution uses a risk-weighted value or the calculation of capital requirements: (a) article 143) referred to in paragraph 1 to the internal ratings based approach; (b)), 283.221. and article 363. internal models; c) referred to in article 225 of the authorities to the same volatility estimates when calculating the value of exposures for the volatility adjustments; e) 259. paragraph 3 of article in an internal evaluation method; (d)) of article 312, paragraph in the measurement approach; systemic risks — 63) financial system risk, which may have a significant negative impact on the financial system and the economy; 64) important systemic institution — the mother of the European Union financial holding company, parent of a mixed financial holding company, the parent of a credit institution or credit institution whose disruption or disorder can cause systemic risk; 65) top management — a person (employee) that posts status allows them substantial influence over the direction of the institution, but who are not members of the Council or the Board; "; to supplement the article with the second and third subparagraphs by the following: "(2) the EU regulations No. 575/2013 meaning law is used in the following terms: 1) a credit institution, the EU Regulation No. 575/2013 article 4(1) subparagraph 1; 2) equity: the EU Regulation No. 575/2013 4. paragraph 1 of article 118. within the meaning of subparagraph; 3) financial holding company of the mother of the Member State of the EU Regulation n ° 575/2013 article 4 paragraph 1 of section 30; 4) mother's European Union financial holding company: the EU Regulation No. 575/2013 4. Article 31 paragraph 1 subparagraph a; 5) Member parent mixed financial holding company, the EU Regulation No. 575/2013 4. paragraph 1 of article 32 subparagraph; 6) European Union parent mixed financial holding company, the EU Regulation No. 575/2013 article 4 paragraph 1, point 33; 7) control, the EU Regulation No 575/2013 4. paragraph 1 of article 37 of the meaning of the subparagraph; 8) a significant interest, the EU Regulation No 575/2013 article 4 paragraph 1, point 36; 9) exposures — EU Regulation No 575/13 paragraph 1 of article 5; 10) interconnected group of customers: the EU Regulation No. 575/2013 article 4 paragraph 1, point 39; 11) financial institution: the EU Regulation No. 575/2013 4. Article 26 paragraph 1 subparagraph a; financial holding company: 12) the EU regulations No. 575/2013 4. paragraph 1 of article 20, subparagraph; 13) close relations: the EU Regulation No. 575/2013 article 4 paragraph 1, point 38; 14) recoverable values of risk reduction, the EU Regulation No. 575/2013 article 4 paragraph 1, point 53. (3) in addition to the first and second terms in the law is applied in the terms that meet the following EU Regulation No. 575/2013 used terms: 1) parent company — the term "parent" EU Regulation No 575/2013 article 4 paragraph 1 of section 15; 2) subsidiary company — the term "subsidiary" EU Regulation No 575/2013 4. Article 16 paragraph 1 subparagraph a; 3) mixed holding company — the term "mixed-activity holding company" EU Regulation No 575/2013 4. paragraph 1 of article 22, subparagraph; 4) home state — the term "home Member State" the EU Regulation No. 575/2013 article 4 paragraph 1, point 43; 5) participating country — the term "host Member State" the EU Regulation No. 575/2013 article 4 paragraph 1, point 44; 6) management authority — the term "competent authority" the EU Regulation No. 575/2013 4. paragraph 1 of article 40 of the meaning of the subparagraph; 7) consolidated management authority — the term "authority" of consolidated supervision of EU Regulation No 575/2013 4. paragraph 1 of article 41 section. "; believe the current text of article about the first part. 4. in article 6: make the first paragraph by the following: "(1) a foreign credit institution founding the branch, operation, reorganisation and liquidation is regulated by this law, except for the first paragraph of article 27, paragraph 5, of the 21.3, 35.2, 35.32, 36.2, 43, 49, 49.1, 50.9, 50.8, article 57. the first paragraph of article 58, 59, 77, 78, 79, 80, 83, 84, 85, 86, 87, 90, 91, 101.3, article 109, 126, in the first paragraph of article 1 and paragraph 3 , 127, 128, 129. the second paragraph of article 137, 138, 140, 141,., 142, 143, 144, 145, 149, 152, 170, 172, 173, 174, 172.1.,., 175, 176, 177.., 184, 185, 188., 189 and 190., as well as other laws. " make the third paragraph as follows: "(3) in another credit institution established in a Member State entitled to provide financial services in the Republic of Latvia, the Republic of Latvia is bound by laws on the provision of statistical information and the protection of the public interest, as well as this law 12.1, 37, 95 and 96, chapter V, article, article and chapter XVI 108.1 requirements."; to supplement the article with the fourth and fifth by the following: "(4) a foreign credit institution or branch of credit institution established in another Member State of the branch in the Republic of Latvia to apply this law and the regulations of article 59.4 59.2 of the undertaking or of part of it, including branches, separate property, assets or liabilities or with credit institutions clients magnitudes concluded contract transition of another person's property or use. (5) the financial and capital market Commission are entitled to request to another Member State of the branch of a credit institution established in this law started in the provision of financial services in the territory of the Republic of Latvia, shall provide it with information on their activities in the territory of the Republic of Latvia statistical information needs. " 5. in article 10.1: make the third paragraph as follows: "(3) the credit institution's internal audit duties can be delegated only sworn auditor certified auditor or company that carries credit at the annual accounts and the consolidated annual report of the inspection or the credit institution's parent company, credit institution established in a Member State."; to make an eighth of the following: "(8) the financial and capital market Commission has the right to inspect the activities of the outsourcing it outsourcing or place, including any request for filing documents and consult all documents and registers of accounting documents, make copies of or extracts of documents, as well as to request from the external service provider or its agents or employees for explanations and information related to outsourcing or necessary financial and capital market Commission's functions as well as interview any third party that would, for information about outsourcing. " 6. in article 12.2: replace the number in the fourth paragraph, and the word "30 days" with the words "two months"; replace the fifth paragraph, the words "and the size of the capital adequacy indicator" with the words "and the structure and amount of the equity capital requirements". 7. Supplement article 2.1 part 12.4 as follows: "(21) sending information on the Republic of Latvia registered financial institution branch in another Member State, Financial and capital market Commission in addition to this law, in the fifth subparagraph of article 12.2 to the prescribed information, send information about its credit institutions total exposure value that is registered in the Republic of Latvia, the parent company of the financial institution. " 8. Supplement article 14, paragraph 5, first subparagraph after number "24" with a name and a number "and" 26. 9. Replace article 16, in the fourth paragraph, the words "and the numbers 1, 2 or 3." with the figures and word "1 or 2". 10. Replace the second paragraph of article 19.1, the word "driver" with the words "Board and of the members of the Council". 11. Article 21: make the first paragraph by the following: "(1) credit institutions the initial capital shall not be less than five million. The initial capital is composed of one or more of the following elements that comply with EU Regulation No. 575/2013 requirements for the first level of basic elements: 1) capital shares and other capital instruments and the premium; 2) previous years retained earnings or losses; 3) other accrued income presented in the comprehensive income statement; 4) other reserves; 5) year current profit. "; turn off third. 12. Article 24: make the introductory part of the first subparagraph by the following: "(1) The Chairman of the Management Board of a credit institution, Member of the Management Board, head of the internal audit service, risk Director for operational control of compliance of the liable person, Inspector, a foreign credit institution branch manager and prokūrist can be a person:"; to complement the second paragraph after the word "driver" with the words "risk Director, conformity of the operation control of the person responsible, the foreign branch of a credit institution"; make the third paragraph as follows: "(3) a credit institution is obliged to immediately withdraw from the post of the first paragraph of this article, if they do not meet the requirements of this article."; turn off the fourth. 13. Article 25: express first and second subparagraph by the following: "(1) The Chairman of the Management Board of a credit institution, Member of the Management Board, head of the internal audit service, risk Director for operational control of compliance of the liable person, Inspector, a foreign credit institution branch manager and can not be prokūrist person: 1) is convicted of an intentional criminal offence, including the abuse of bankruptcy (apart from deleting or removing the criminal record); 2) against whom criminal proceedings for the criminal offence of intentional termination, even if a criminal case against a person not based on dissolved reabilitējoš. (2) a credit institution or, in the case of the Council of the society Inspector — it is the responsibility of the general meeting to immediately withdraw from the post of the first paragraph of this article, if they may be the subject of the first subparagraph of paragraph 1 or 2. "; turn off third. 14. in article 26: replace the numbers in the first paragraph and the words "1, 2 or 3." with the figures and word "1 or 2"; turn off the second paragraph after the words "have a duty", the words "or by the financial and capital market Commission's request"; turn off third. 15. To supplement the law with 26.1 article 26.1: "this article. (1) determining how the Council and the members of the Management Board of the credit institution of posts or Board member of the Council may take, at the same time takes into account individual circumstances, as well as the activities of the credit institution, the volume and complexity. (2) the Size, internal organisation and the nature of the activity, in terms of volume and complexity of the credit institutions a significant Council and member of the Board, except 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 within the same EU Regulation No 575/2013 article 113, paragraph 7, of the conditions in accordance with the institutional protection scheme; 3) companies (including non-financial institutions), in which a credit institution's qualifying holdings. (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 financial and capital market Commission may authorise credit institutions to the Council or the Executive Board to take one additional post of Council members. (6) the financial and capital market Commission regularly grants the European banking authority in accordance with the fifth paragraph of this article, the permissions granted. " 16. Make the first paragraph of article 27, paragraph 8 of the following: "8) credit institution do not comply with this law and other regulatory activities of the credit institution law;". 17. off the seventh subparagraph of article 27.1 after the number and the word "the", the words "article 50.9 of the seventh". 18. Make the article 29 paragraph 2 of part 5 of the following: "2) Council, Board and senior management that the proposed acquisition will be managed as a result of the business of credit institutions, knowledge and professional experience match the requirements of this law and impeccable reputation;". 19. Article 33 off first and fourth. 20. the title of chapter IV, Expressed as follows: "(IV) Department of the business of regulatory requirements and capital reserves" 21. off article 34. 22. in article 34.1: Supplement to the second part of the article as follows: "(2) the financial and capital market Commission lays down the requirements for the credit institution's internal control systems."; believe the current text of article about the first part. 23. To supplement the law with article 21.3, 21.3 and 21.4 as follows: "article 21.3. (1) a credit institution shall establish and implement a 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 non-trading portfolio, liquidity risk, the risk of excessive leverage and other significant risks to the credit institution. (2) a credit institution's strategy, policy, procedures and systems comply with the complexity and scope of its operations, as well as the credit risk of the Council defined acceptable levels and are developed taking into account the systemic importance of the credit institution in each Member State in which it operates. (3) a credit institution is developing contingency plans to restore liquidity, and business continuity, as well as the measures necessary for the implementation. (4) the financial and capital market Commission imposes requirements on credit risk management and action plans for emergencies, to restore liquidity and ensure business continuity. Article 21.3. (1) a credit institution, its officers or employees whose professional activities have a material impact on the risk profile of the credit institution, ensure that remuneration policies and practices that meet the prudent and effective risk management and promote, but do not encourage risk-taking over risk of the credit institution given in the reception level is permissible. (2) a credit institution, its officers or employees whose professional activities have a material impact on the risk profile of the credit institution, may not set 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, the third, fourth, fifth and sixth part of these conditions. (3) the meeting of shareholders of a credit institution with a separate decision for officials or staff whose professional activities have a material impact on the risk profile of the credit institution may determine 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. (4) a credit institution's shareholders meeting for officials or staff whose professional activities have a material impact on the risk profile of the credit institution, the variable part of remuneration in excess of a certain amount of official or employee of the reporting year specified in the variable part of the remuneration will not be adopted on the basis of the draft prepared by the credit institution, which includes the following remuneration for the determination of the variable part of the grounds indicated in the relevant officials or employees, positions held and the functions to be performed as well as assessing the impact of the decision to the credit institution's ability to maintain its stable operation the necessary equity. The decision shall be taken with at least 66 percent of the voting shares of the majority, provided that the credit institution's general meeting represented at least 50 percent of the voting shares, or to at least 75 percent of the voting shares of the majority, provided that the credit institution's general meeting represented less than 50 percent of the voting shares, if in compliance with legislative requirements or provisions of the Statute of the credit institution follows the shareholders ' meeting is valid. Officer or employee of a credit institution, which is voting shares holder, does not participate in any meeting of shareholders of a credit institution in the taking of a decision concerning his salary. (5) a credit institution shall immediately, but not later than five working days in accordance with the fourth paragraph of this article, the requirements the submission of the draft decision prepared by the shareholders electronically submit financial and capital market Commission, this draft decision and evidence that the respective officers or staff whose professional activities have a material impact on the risk profile of the credit institution, the determination of the variable part of the remuneration at a level that exceeds the remuneration laid down in the year unchanged, without prejudice to credit institutions the ability to comply with this law and the future EU Regulation No 575/2013 requirements, particularly the requirements of equity. (6) a credit institution shall immediately, but not later than five working days after the date referred to in the third subparagraph of decision of the general meeting of the electronically submitted financial and capital market Commission. (7) the financial and capital market Commission lays down the requirements for the remuneration policy and practices in respect of the credit institution, officials or staff whose professional activities have a material impact on the risk profile of the credit institution. 21.4 article. (1) a credit institution shall develop, maintain and restore its recovery plan to restore financial stability after its significant deterioration. (2) the financial and capital market Commission of the application of credit plans for their continuity and stability of the financial sector. (3) the financial and capital market Commission establishes requirements in relation to the first paragraph of this article and the contents of the plan development. (4) the financial and capital market Commission may determine reduced requirements referred to in the first paragraph of the recovery plan development or may not develop in the second part of the application of the credit institution referred to in the plan, after consultation with the Bank of Latvia has concluded that the insolvency of the credit institution, taking into account the size of the credit institution, the business model, linking with other credit institutions and the financial system or other circumstances, may not endanger the financial markets and the stability of credit institutions or other financial terms. (5) the financial and capital market Commission's timely notice to the European banking authority as they do with credit recovery and relief plans related to the conduct of meetings and the agenda. " 24. Turn off 35 and 35.1 article. 25. To supplement the law with article 35.3-35.32 as follows: "article 35.3. (1) a credit institution shall ensure that its tier one core capital is sufficient to cover the capital conservation reserve is 2.5% of total exposure value calculated in accordance with EU Regulation No. 575/2013 article 92 (3). Credit institutions shall comply with the requirement to ensure the preservation of the individual capital and consolidation at group level or subkonsolidēt in accordance with EU Regulation No. 575/2013 the first part of section II. (2) the first level of basic capital, maintained by the credit institution in accordance with the requirements of the first subparagraph shall not be used to meet: 1) the EU regulations No. 575/2013 article 92 establishes equity; 2) this law article 101.3. (3) a credit institution, which does not provide capital conservation reserve in accordance with the first and second part, followed this law article 35.27 in the first and third part distribution restrictions set out in. 22.0 article. (1) a credit institution shall ensure that its tier one core capital is sufficient to cover the credit institution the counter-cyclical role specific capital reserve, which is determined in accordance with the EU Regulation No. 575/2013 article 92 (3) calculate the total exposure value multiplied by the credit institution specific counter-cyclical role capital reserves. (2) the first level of basic capital, maintained by the credit institution in accordance with the requirements of the first subparagraph shall not be used to meet: 1) the EU Regulation No. 575/2013 in certain equity requirements; 2) of this Act and the requirements of article 101.3 35.3. (3) a credit institution, which does not provide the capital reserve an anti-cyclical behaviour in accordance with the first and second part, followed this law article 35.27 in the first and third part distribution restrictions set out in. 22.1 article. (1) the financial and capital market Commission quarterly determines the counter-cyclical role in capital reserve rules related to exposures, which concluded with the residents of the Republic of Latvia. Capital reserves a counter-cyclical role norms of financial and capital market Commission shall be determined taking into account: 1) in the quarter, estimated capital reserves a counter-cyclical role landmarks; 2) variables, which it considers essential to a cyclical evaluation of systemic risk; 3) the existing European systemic risk Board recommendations on capital reserves an anti-cyclical behaviour rules. (2) the financial and capital market Commission quarterly calculate capital reserves a counter-cyclical role landmark, used as a basis in determining capital reserves an anti-cyclical behaviour rules in accordance with the first paragraph of this article. Capital reserves a counter-cyclical role landmark meaningfully reflect the current credit cycle in the Republic of Latvia, the risks of excessively rapid economy of Latvia's lending, as well as the economy of the Republic of Latvia-specific features. Capital reserves a counter-cyclical role in landmark calculation is based on residents of the Republic of Latvia and of loans to gross domestic product ratio of deviation from the long-term trends, calculated by taking into account: 1) the amount of loans growth and particularly indicators that reflect the level of loans and the gross domestic product for changes; 2) the existing European systemic risk Board guidelines and recommendations on capital reserves a counter-cyclical role in landmark and how the measured and calculated the amount of the loans and the gross domestic product for the deviation from the long-term trends. (3) capital reserves an anti-cyclical behaviour the norm, which is expressed as a percentage of the total with the residents of the Republic of Latvia concluded the exposure value calculated in accordance with EU Regulation No. 575/2013, down 0 to 2.5 percent, with 0.25% of the interval or intervals that are of significance to 0.25 percent. (4) the financial and capital market Commission may determine a counter-cyclical role capital reserves that exceed the norm for 2.5 percent, if it is reasonable, having regard to the first part of the above indicators and criteria. This increased capital reserves an anti-cyclical behaviour rules is included in the credit institution specific capital reserves a counter-cyclical role norms in the calculation. (5) the financial and capital market Commission, the first time such a counter-cyclical role by setting a capital reserve margin that is greater than zero, or increase their existing capital reserves an anti-cyclical behaviour rules, determines the date from which the credit institution the capital reserves an anti-cyclical behaviour rules apply when calculating a counter-cyclical role by the credit institution-specific capital reserves. This date is the date of the day, followed by 12 months from the date on which under the seventh paragraph of this article published in the notice of the capital reserves of a counter-cyclical role norm-setting that is greater than zero, or notification of existing capital reserves an anti-cyclical behaviour rules. Financial and capital market Commission in exceptional cases may provide an earlier date than the day after 12 months from the date of publication of the notice on the capital reserves of a counter-cyclical role norm-setting that is greater than zero, or notification of existing capital reserves an anti-cyclical behaviour rules. (6) the financial and capital market Commission, lowering capital reserves an anti-cyclical behaviour rules, regardless of whether a counter-cyclical role capital reserves rate is reduced to zero, determine the approximate period, which provides no capital reserves an anti-cyclical behaviour rules. Financial and capital market Commission may change this predetermined about the duration of the period. (7) the financial and capital market Commission quarterly publishes statement on its Web site, giving at least the following information: 1) down the capital reserves a counter-cyclical role; 2) the loans and the ratio of gross domestic product and its deviation from the long-term trends; 3) in accordance with the second paragraph of this article calculate capital reserves a counter-cyclical role landmarks; 4) in certain capital reserves a counter-cyclical role norms; 5) date from which the credit institution, a credit institution calculating the specific capital reserves an anti-cyclical behaviour rules, the capital reserves a counter-cyclical role norms, if it is determined that a counter-cyclical role capital reserves that is greater than zero, or is raised in an anti-cyclical behaviour in force in capital reserves. 6) exceptional circumstances due to which this part, paragraph 5 of the date is earlier than the day after 12 months from the date of publication of the notice in a counter-cyclical role norms increase capital reserves; 7) about the period during which the counter-cyclical role in capital reserves, as well as provisions for the following reasons, the determination of the period if the counter-cyclical role capital reserves rate is lowered. (8) the financial and capital market Commission shall take all reasonable measures to harmonise the seventh subparagraph of this article, the publication of the notice referred to in time with other responsible authorities in the Member States. (9) the financial and capital market Commission each quarter shall notify the European systemic risk Board established an anti-cyclical behaviour in capital reserves, as well as that norms the seventh subparagraph of article information. 22.1 article. (1) the financial and capital market Commission may recognize a counter-cyclical role capital reserves ratio exceeds 2.5% and which is established by the Member State or another foreign authority responsible for capital reserves an anti-cyclical behaviour rules. If the financial and capital market Commission has recognized a counter-cyclical role capital reserves ratio exceeds 2.5 percent, the credit institution the capital reserves an anti-cyclical behaviour rules apply when calculating a counter-cyclical role by the credit institution-specific capital reserves. (2) the financial and capital market Commission that has recognised in another Member State or in a foreign country a counter-cyclical role specified capital reserves ratio exceeds 2.5 per cent, notify you by posting notice on its Web site. The notice shall contain at least the following information: 1) recognized a counter-cyclical role in capital reserves. 2), the Member State or foreign transactions in which residents of a counter-cyclical role recognised subject to capital reserves. 3) If recognition results in an anti-cyclical behaviour in capital reserve margin has risen, the date from which the credit institution the capital reserves an anti-cyclical behaviour rules apply when calculating the credit institution specific capital reserves a counter-cyclical role; 4) If this part 3 paragraph date is earlier than the day after 12 months from this part of the publication of this notice in the days — exceptional circumstances that justify such earlier period of commencement of the application. Article 22.2. (1) If one or more credit institutions registered in the Republic of Latvia shall be carried out subject to credit risk exposures to foreign residents, but the foreign authority responsible for capital reserves a counter-cyclical role norm-setting, and not published with its residents an anti-cyclical behaviour applicable provisions of capital reserves, the financial and capital market Commission may impose capital reserves an anti-cyclical behaviour the norm for transactions exposed to credit risk with these foreign residents you need to apply to the credit institution, a credit institution calculating specific counter-cyclical role capital reserves. (2) If one or more credit institutions registered in the Republic of Latvia shall be carried out subject to credit risk exposures to foreign residents and the foreign authority responsible for capital reserves an anti-cyclical behaviour standards, has established and published by transactions with residents of the counter-cyclical role applicable to capital reserves, but its rules, by the financial and capital market Commission, the evaluation is not high enough to ensure that the credit institution against too rapid in a foreign country the amount of loans growth risks Financial and capital market Commission, may provide for other capital reserves an anti-cyclical behaviour the norm for exposed to credit risk exposures to these foreign residents, which requires credit institutions to apply the calculation of a credit institution specific counter-cyclical role capital reserves. (3) in determining the other capital reserves a counter-cyclical role norms according to the second subparagraph of this article, the financial and capital market Commission, it does not lower the capital reserves of a counter-cyclical role norms established by the relevant foreign authority responsible for capital reserves an anti-cyclical behaviour rules, if these authorities in certain foreign capital reserves a counter-cyclical role does not exceed 2.5 per cent of the exposed to credit risk exposures to these foreign residents requesting the total credit exposure values calculated in accordance with EU Regulation No. 575/13 (4) the financial and capital market Commission, established in accordance with the first and second part of the capital reserves of a counter-cyclical role norms with foreign residents entered into transactions, which is higher than the existing capital reserves an anti-cyclical behaviour rules, determines the date from which the credit institutions this higher capital reserves an anti-cyclical behaviour rules apply when calculating a counter-cyclical role by the credit institution-specific capital reserves. This date is the date of the day, followed by 12 months from the date on which in accordance with the fifth paragraph of this article published in the communication on capital reserves an anti-cyclical behaviour rules. Financial and capital market Commission in exceptional cases may provide an earlier date than the date after 12 months from the date of publication of the notice concerning capital reserves a counter-cyclical role norms. (5) the financial and capital market Commission announces that in accordance with the first and the second part is detected by foreign residents concluded the exposed to credit risk exposures of a counter-cyclical role applicable to capital reserve rules by publishing a notice on its Web site. The notice shall contain at least the following information: 1) the counter-cyclical role capital reserves and foreign norms, on the exposed to credit risk exposures to which it applies to residents; 2) in certain capital reserves a counter-cyclical role norms description; 3) If transactions with foreign residents have increased certain counter-cyclical role capital reserves, the date from which the credit institution is required to apply to the calculation of a credit institution-specific capital reserves a counter-cyclical role; 4) exceptional circumstances due to which the part referred to in paragraph 3, the date is earlier than the day after 12 months from the date of publication of the notice concerning capital reserves a counter-cyclical role norms. Article 22.2. Credit institution-specific capital reserves an anti-cyclical behaviour rules shall lay down the procedure for the calculation of the Financial and capital market Commission. Article 22.3. Financial and capital market Commission recognizes the Republic of Latvia registered global systematically important institutions consolidation at group level, pursuant to this law, the requirements of article 35.11 35.10 and methodology referred to in article 1, and other significant systemic institutions, consolidation of the individual group level or subkonsolidēt in accordance with the requirements of article 35.13 of the law and the criteria referred to in article 69.35. 35.10 article. On global systemic importance to the authority may recognise the Republic of Latvia to the European Union established in the parent credit institution, the parent financial holding company, the Union's parent mixed financial holding company or a credit institution. On global systemic importance to the authority can't recognize the credit institution which is the parent credit institution of the European Union, the European Union, the financial holding company of the mother or the mother's mixed financial holding company subsidiary. 35.11 article. (1) a credit institution, financial holding company or a mixed financial holding company, which is recognized as a global systemic importance, are included in one of at least five globally significant systemic institutions subgroups, based on the following criteria: 1) evaluation of the credit or the size of the Group; 2) group in the financial system; 3) group the interchangeability of the services provided or the financial infrastructure of the Group; 4) the complexity of the Group; 5) groups of cross-border activity both in other Member States, and abroad. (2) each of the criteria used to evaluate numerically quantifiable indicators and all the criteria has equal weight in determining the overall rating. Breakdown of subgroups and separates between the subsets have a clear basis in accordance with the first part of the evaluation, and reflects the global systemic problem of credit institutions a significant potential impact on the global financial market. (3) the financial and capital market Commission, on the basis of the supervisory rating, is entitled: 1) include globally important systemic institution subgroups corresponding to the higher systemic importance, than for being determined in accordance with the second subparagraph, the calculation made of the methodology; 2) recognize the importance of global systemic authority that a credit institution, financial holding company or a mixed financial holding company, whose importance in the assessment of systemic, carried out in accordance with the first and second part, below the minimum, after which a credit institution, financial holding company or a mixed financial holding company is recognized as a globally significant systemic authority, and include the following significant systemic global authority in the subgroup, which is higher than the minimum value corresponding to systemic cases. (4) the financial and capital market Commission shall inform the European Commission, the European systemic risk Board and the European banking authority for credit institutions, financial holding company or a mixed financial holding company which is recognised as a global systemic importance, and corresponding subgroups, in which they are included, as well as public global systemic importance list, specifying the relevant sub-groups, in which they are included. (5) the financial and capital market Commission review of systemic importance globally recognised authorities of credit institutions, financial holding company or a mixed financial holding company and corresponding systemic sub-groups, in which they are included, not less frequently than once a year and inform the global systemic importance for the decisions of the authority shall notify this information to the European Commission, the European systemic risk Board, the European banking authority, as well as public institutions globally significant systemic list , specifying the appropriate subgroup in which they are included. (6) If a credit institution, financial holding company or a mixed financial holding company is recognised as a global systemic importance to the institution and included in the appropriate subset of the third part of this article, paragraph 2, in the cases provided for in the financial and capital market Commission included this article in the fourth and fifth part in the European banking authority communications information on the decision and the reasons therefor. (7) a credit institution, financial holding company or a mixed financial holding company is recognised as a global systemic importance and included in the appropriate subgroup based on European legislation set out in the methodology. 35.12 article. (1) a globally significant systemic authority consolidation at group level is determined globally significant capital reserves the authority rules from 1 percent to 3.5 percent according to the subgroup established under article 35.11 of this law. The first four of this law article 35.11 referred to subgroups globally important systemic institution capital reserves margin is determined by the interval 0.5 percent, but the last subgroup it is 3.5 percent. All subgroups, except the last, the global systemic importance authorities capital reserves increased linear rules globally significant systemic problems of credit institutions to the possible impact on global financial markets. (2) global systemic importance of the institution's capital reserve is calculated as in accordance with EU Regulation No. 575/2013 estimated total exposure value multiplied by its specific global systemic significance of institutions capital reserves. Global systemically important institution ensures that its tier one core capital is sufficient to cover the global systemic importance of the institution's capital reserve. (3) global systemically important institution first level of basic capital, which it maintained in accordance with the requirements of the second subparagraph, shall not be used to meet the capital requirements laid down in the EU Regulation No. 575/2013 and 35.3, 35.4 this law and in article 101.3. Article 35.13. Financial and capital market Commission identifies other systemic importance. The other significant systemic authority may recognise the Republic of Latvia to the European Union established in the parent credit institution, the parent financial holding company, the Union's parent mixed financial holding company or a credit institution. 69.35 article. (1) a credit institution, financial holding company or a mixed financial holding company could become another important systemic institution, on the basis of one or more of the following criteria: 1) the evaluation of the credit or the size of the Group; 2) the importance of the European Union or to the economy of the Republic of Latvia; 3 the importance of cross-border activities); 4) credit institutions or groups relationship with the financial system. (2) a credit institution, financial holding company or a mixed financial holding company of systemic importance evaluation methodology, taking into account the criteria referred to in the first subparagraph shall be determined by the financial and capital market Commission. 35.15 article. (1) a credit institution, financial holding company or a mixed financial holding company, recognized as another important systemic institution this law referred to in article 69.35 evaluation results, financial and capital market Commission may define other important systemic institution capital reserves to 2 percent margin. Determining the significance of another systemic capital reserves the authority rules, financial and capital market Commission observed that its application should not leave a disproportionate negative impact on the financial systems of other Member States or part of it, or the European Union as a whole, creating obstacles to the European Union's internal market. (2) other significant systemic authority capital reserve requirement is calculated in accordance with EU Regulation No. 575/2013 estimated total exposure value multiplied with it down the other important systemic institution capital reserves. Other important systemic institution capital reserve requirements follow through the first level of basic capital may not be used to meet the capital requirements laid down in the EU Regulation No. 575/2013 and 35.3, 35.4 this law and in article 101.3. (3) other significant systemic authority that are global to the systemic significance of institutions, subsidiary or other significant systemic institutions, which is the parent company of the European Union to which the consolidation at group level is set other important systemic institution capital reserve requirements, the subsidiary company, individual, or other specific subkonsolidēt the systemic importance of the institution's capital reserves the claim does not exceed the greater of the following indicators: 1) in 1 percent of the total value of exposures calculated in accordance with EU Regulation No. 575/2013; 2) global systemic significant capital reserves the authority rules or other systemic importance to capital reserves the authority rules applicable for the consolidation of the parent group level. (4) the financial and capital market Commission report on other significant systemic institutions recognized for credit institutions, financial holding company or a mixed financial holding company laid down for other important systemic institution capital reserve rules of validity not less frequently than once a year and shall inform the other significant systemic authority of the decision, notify the European Commission, the European systemic risk Board, the European banking authority, as well as other relevant public institutions list systemically. (5) the financial and capital market Commission shall notify the European Commission, the European systemic risk Board, the European banking authority and the public about other important systemic institution recognised credit institutions, financial holding company or a mixed financial holding company name. (6) no later than one month before the decision is announced on the other important systemic institution capital reserves the fixing or revision of standards, financial and capital market Commission, the European Commission, the European systemic risk Board, the European banking authority and the responsible authorities in the Member States where other important systemic institution or the consolidation group shall take action, notice that: 1) set out in detail the reasons why it is considered that other important systemic institution capital reserves provisions may be effective and proportionate instrument for risk reduction; 2) in detail, using all available information, assess the systemic importance of other capital reserves the authority rules discovery potential positive and negative impacts on the internal market of the European Union; 3) another important systemic institution capital reserves, which is intended to measure. 35.16 article. (1) the financial and capital market Commission, to prevent or reduce long-term systemic or makroprudenciālo cyclical financial system risks, which may have a significant negative impact on the financial system of the Republic of Latvia and the economy and not subject to EU Regulation No 575/2013, may provide to or for one or more subgroups of credit requirements to maintain systemic risk capital reserve. Systemic risk capital reserve requirement is calculated in accordance with EU Regulation No. 575/2013 estimated total exposure value multiplied by systemic risk capital reserve margin, determined in accordance with this law, the first paragraph of article 35.20 requirements published in the notification. (2) systemic risk capital reserve margin of at least 1 percent, based on transactions, which, under the first paragraph of this article shall apply to the systemic risk capital reserve individual consolidation at group level or subkonsolidēt according to EU Regulation No. 575/2013. (3) a credit institution first level of basic capital, which it maintained in accordance with the requirements of the first subparagraph shall not be used to meet: 1) the EU Regulation No. 575/2013 requirements to maintain a level of capital base pointer 4.5% of the total value of exposures; 2) of this Act, and in article 35.3 35.4 101.3 requirements for equity. (4) a credit institution, which does not provide a systemic risk reserve according to the first paragraph of this article shall comply with the requirements of this law article 35.27 in the first and third part distribution restrictions set out in. (5) where the distribution restrictions, taking into account the systemic risk, are not sufficient to increase the level of the credit institution's capital base, financial and capital market Commission may implement one or more of this law, in article 113. 35.17 article. (1) the financial and capital market Commission can determine the individual credit institution, the consolidation at group level or subkonsolidēt claim to maintain systemic risk capital margin in relation to exposures: 1) in the Republic of Latvia; 2) abroad; 3) in the other Member States, subject to compliance with the law of the fifth subparagraph of article 35.18 and 35.20 article. (2) the financial and capital market Commission determines the systemic risk capital reserve rules to the extent of significance to 0.5 percent. (3) financial and capital market Commission may determine different systemic risk capital reserve rules for different subgroups of credit institutions. (4) the financial and capital market Commission ensures that systemic risk capital reserve requirements determination leaves no disproportionate adverse effects on other Member States or the European Union's financial system and do not constitute an obstacle to the European Union's internal market. (5) the financial and capital market Commission review the systemic risk capital reserve margin at least once every two years. 35.18 article. (1) the financial and capital market Commission that it detects systemic risk capital reserve rules that does not exceed by more than 3 percent, the risk of the transactions concluded with the Republic of Latvia or foreign residents a month previously notified to the European Commission, the European systemic risk Board, the European banking authority and foreign supervisory authorities. (2) the notification provided under the first paragraph of this article, includes: 1) detailed information about the risks of systemic or makroprudenciāl in the Republic of Latvia, which is a certain systemic risk capital reserves. 2) detailed information on the reasons for which this part of the risk referred to in paragraph 1 to the size of the Republic of Latvia is threatening the stability of the financial system and that the systemic risk be determined capital reserves; 3) reasons why it is considered that the systemic risk capital reserve requirements determination can be an effective and proportionate means of this part of the risk referred to in paragraph 1 for the elimination or reduction; 4) assessment, which is conducted on the basis of the information available about the systemic risk capital reserve requirements determination of possible positive or negative impact on the internal market of the European Union; 5) reasons why systemic risk capital margin requirements is a more effective tool in this part referred to in paragraph 1 to the prevention or mitigation of risks than one or more of the other means provided for in this Act or in the EU Regulation No. 575/2013, except: (a)) at Member State level identified systemic or makroprudenciāl the risk prevention or reduction measures; b) stricter application of prudenciāl, if you need to deal with mikroprudenciāl and makroprudenciāl changes in the intensity of risk related problems arising from market developments in the European Union or outside the European Union and all the Member States affected; 6) would be the systemic risk capital reserves. (3) the financial and capital market Commission that will identify systemic risk capital reserve margin of 3 to 5 percent risk of the transactions concluded with the Republic of Latvia or foreign residents a month previously notified to the European Commission. Decision on the systemic risk capital reserve rules discovery 3 to 5 percent risk of the transactions concluded with the Republic of Latvia or foreign residents, will not be published before the point of view of the European Commission. If the European Commission does not support the financial and capital market Commission notice said systemic risk capital reserve rules, the determination of the financial and capital market Commission shall not publish a notice of the systemic risk capital reserve rules setting or publish notice of the systemic risk capital reserve rules and has failed to justify why the European Commission's views. (4) If systemic risk capital reserve rules, laid down 3 to 5 percent in accordance with the third paragraph of this article, is applicable to the credit institution which is the parent company of another Member State, the Republic of Latvia established a subsidiary company financial and capital market Commission shall inform the other Member State authority responsible for systemic risk reserve setting, the European Commission and the European systemic risk Board. If no agreement is reached with other Member State authority responsible for systemic risk reserve setting, and if both the European Commission and the European systemic risk Board received the recommendation to exclude systemic risk capital reserve rules to a credit institution which is the parent company of another Member State, the Republic of Latvia established a subsidiary company financial and capital market Commission decision not to include systemic risk capital reserves on credit rules that is the parent company of another Member State, the Republic of Latvia established a subsidiary company, or contact the European banking authority involved in proceedings before the European Parliament and of the Council of 24 November 2010 to Regulation (EU) no 1093/2010 establishing a European supervisory authority (European banking authority), amending Decision No 716/2009/EC repeals Commission decision 2009/78/EC (hereinafter referred to as the EU Regulation No. 1093/2010). (5) If systemic risk capital reserve rules will be applied to the risks of the transactions concluded with another Member State residents, the financial and capital market Commission imposes the same systemic risk capital reserve rules to all exposures within the European Union. 35.19 article. (1) the financial and capital market Commission that is expected to set or change the systemic risk capital reserve ratio exceeds 3 percent, the risk of the transactions concluded with the Republic of Latvia or foreign residents, a month in advance, to give this law, in the second paragraph of article 35.18 specified information, the European Commission, the European systemic risk Board, the European banking authority and the relevant foreign supervisory authorities. (2) the financial and capital market Commission may set planned systemic risk capital reserve rules as soon as the European Commission allows it, by adopting appropriate legislation. 35.20 article. (1) the financial and capital market Commission informed of specific systemic risk capital reserve rules, published a statement on its Web site. The notice shall contain at least the following information: 1) the systemic risk capital reserves. 2 the names of credit institutions) which are obliged to respect the systemic risk capital reserve requirements; 3) certain systemic risk capital reserve rules description; 4) date from which the credit institutions to comply with the new start or change the systemic risk capital reserves; 5) transactions in which the residents covered a certain systemic risk capital reserves. (2) if the first paragraph of this article, paragraph 3, of the information referred to in the publication could endanger the stability of the financial system, financial and capital market Commission does not include this information in the communication. 35.21 article. (1) the financial and capital market Commission can be recognised in the other Member State certain systemic risk capital reserve rules and to determine the requirements of the credit institution in another Member State the specific systemic risk capital reserve rules for exposures, with residents of that Member State. (2) if the financial and capital market Commission recognises in another Member State certain systemic risk capital reserve rules, it shall inform the European Commission, the European systemic risk Board, the European banking authority and the Member State concerned. (3) the decision of the other Member States of certain systemic risk capital reserve rules, financial and capital market Commission takes account of the Member State concerned, the competent authorities of the information provided. (4) the financial and capital market Commission, defining systemic risk capital reserves in accordance with the provisions of this Act, may request the article 35.17 European systemic risk Board in accordance with the European Parliament and of the Council of 24 November 2010 Regulation (EU) no 1092/2010 of the European Union macro prudential oversight of the financial system and establishing a European systemic risk Board to issue recommendations for the establishment of one or more Member States to recognise the specific systemic risk capital reserve margin. 35.22 article. (1) global systemic importance the institution's overall capital reserve requirement is determined as the amount of such capital reserves: 1) capital conservation reserve, calculated in accordance with this law, the first paragraph of article 35.3; 2 an anti-cyclical behaviour in capital reserve), calculated in accordance with this law, the first paragraph of article 35.4; most of the following 3) capital reserves: globally important systemic institution capital reserve, calculated in accordance with this law, the second paragraph of article 35.12, other systemic importance the institution's capital reserves, calculated in the light of this law article 35.15 second or third part, and systemic risk capital reserve, calculated in accordance with this law, 35.17. (2) If systemic risk capital margin requirement is set to reduce or eliminate the risk of makroprudenciāl in the Republic of Latvia, and is restricted to exposures to residents of the Republic of Latvia, the total capital reserve requirement is calculated not according to the first subparagraph of paragraph 3, but adding a systemic risk capital reserve requirements, with most of the following capital reserves: globally important systemic institution capital reserve calculated in accordance with this law, the second paragraph of article 35.12, and other systemic importance the institution's capital reserves, calculated in the light of this law article 35.15 second or third part requirements. 35.23 article. (1) other significant systemic institutions total capital reserve requirements for consolidation at group level is determined as the amount of such capital reserves: 1) capital conservation reserve, calculated under this law, the first paragraph of article 35.3; 2 an anti-cyclical behaviour in capital reserve), calculated in accordance with this law, the first paragraph of article 35.4; most of the following 3) capital reserves: other important systemic institution capital reserve, calculated in the light of this law article 35.15 second or third part, and systemic risk capital reserve, calculated in accordance with this law, 35.17. (2) If systemic risk capital margin requirement is set to reduce or eliminate the risk of makroprudenciāl in the Republic of Latvia, and is restricted to exposures to residents of the Republic of Latvia, the total capital reserve requirement is calculated not according to the first subparagraph of paragraph 3, but the sum of the capital reserve of the systemic risk to other important systemic institution capital reserve, calculated in accordance with this law, the second or third 35.15. 35.24 article. (1) a credit institution — global systemic importance of the subsidiary bodies — the total capital reserve requirements can not be less than that calculated by the application of this law, the provisions of article 35.22 individually. (2) a credit institution, other important systemic institution subsidiaries, the total capital reserve requirements can not be less than that calculated by the application of this law, the provisions of article 35.23 individually. (3) other significant authorities — systemic global systemic significance authority subsidiary, the total capital reserve requirements are included in the calculation of the greatest of the following indicators: 1) globally important systemic institution capital reserves and other systemic importance of capital reserves; 2) global systemic significance of institutions capital reserves, other systemic capital reserves and significant systemic risk capital reserve requirements. 28.50 article. If a credit institution is not globally important systemic institution, other significant systemic authority or global systemic importance or other significant systemic authority subsidiary, its total capital reserve requirement on an individual basis, the consolidation at group level and subkonsolidēt are identified as such in the capital reserve amount: 1) capital conservation reserve, calculated in accordance with this law, the first paragraph of article 35.3; 2 an anti-cyclical behaviour in capital reserve), calculated in accordance with this law, the first paragraph of article 35.4; 3) systemic risk capital reserve, calculated in accordance with this law, 35.17. 35.26 article. The credit institution shall comply with the common capital reserve requirements established in accordance with this law, 35.23, 35.24 and 28.50 35.22 article, it is prohibited to conduct first level of basic elements in the capital, where the first level of basic capital so that the credit institution would no longer comply with the total capital reserve requirements. 35.27 article. (1) a credit institution, which does not comply with the total capital reserve requirements established in accordance with this law, 35.23, 35.24 and 28.50 35.22 article, calculate the maximum amount and to be informed of the financial and capital market Commission. Before the maximum amounts to be distributed calculation) the credit institution shall be prohibited: 1 perform the first level of the basic elements in the capital distribution, which includes the meaning of this law: (a) the monetary costs of dividends); b) partially or fully paid bonus (shares that are granted free of charge to shareholders) or EU Regulation No 575/2013 article 26, paragraph 1, "a" section contains other equity instruments; (c)) the same stock or the EU Regulation No. 575/2013 article 26, paragraph 1, "a" section contains other equity instruments of the deletion or purchase; (d)) in the context of the EU Regulation n ° 575/2013 article 26, paragraph 1, subparagraph "a" capital instruments specified in the repayment of the amount paid; (e) the EU regulations) no 575/2013 article 26, paragraph 1, "b", "c", "d" and "e" in the specified element; 2) take the variable part of the remuneration or pension benefits discretionary (EU Regulation No 575/2013 understood) payment obligations or pay the variable part of remuneration, if the payment obligations assumed by the credit institution at a time when it did not respect this law, 35.22, 35.23, 35.24 and 28.50 article total capital reserve requirements; 3) take interest or dividend payments for the first level of the additional equity instruments. (2) the calculation of the maximum amounts to be distributed in the order determined by the financial and capital market Commission. (3) a credit institution, which does not follow this law, 35.23, 35.24 and 28.50 35.22 article total capital reserve requirements, prohibited any of the first paragraph of article 1, paragraphs 2 and 3 of the operations for an amount in excess of this article in accordance with the requirements of the second subparagraph, the maximum amount to be calculated. (4) in this article as well as this law article 35.26 limits apply only to payments, which results in a reduction of the first level of the basic capital or profits and the suspension or the omission which does not breach the basis of the credit institution or insolvency proceedings. (5) If a credit institution, which does not follow this law, 35.23, 35.24 and 28.50 35.22 article total capital reserve requirements, the plan to split the profits or take one of the first paragraph of this article 1, 2, and 3. the actions referred to in paragraph 1, it shall inform the financial and capital market Commission and submit information about: 1) a credit institution's equity capital separately first level of basic capital, tier one capital, and second tier capital; 2 the credit institution's interim profit) and the profit for the financial year; 3 the maximum amount to be distributed), calculated in accordance with the financial and capital market Commission's procedures; 4) profit, which the credit institution intends to split between the payments as dividends, repurchase shares, interest or dividend payments for the first level of the additional equity instruments, as well as the variable part of the remuneration or pension benefits discretionary (EU Regulation No 575/2013 understood) payments, either taking on new commitments or payments under payment obligations assumed by the credit institution at a time when it did not respect this law, 35.22 , 35.23, 35.24 and 28.50 article total capital reserve requirements. 35.28 article. A credit institution shall ensure that the maximum amount of profit and the amount to be calculated accurately, and represents the maximum amount of profit and the distributable amount calculation accuracy of the financial and capital market Commission, at its request. 35.29 article. Credit institution, which does not follow this law, 35.23, 35.24 and 28.50 35.22 article total capital reserve requirements, capital conservation plan drawn up in accordance with this law, the requirements of article 35.30 and submit them to the financial and capital market Commission not later than five working days from the time the identified non-compliance with the said requirements, except in the financial and capital market Commission extend this plan and the submission deadline. Financial and capital market Commission may extend the said plan and deadline for the submission of up to ten days, taking into account the individual situation of the credit institution, the transaction volume and complexity. 35.30 article. Capital conservation plan includes: 1) the credit institution's estimates of income and expenditure, as well as the projected balance of the credit institution; 2) measures of the credit institution's capital increase of indicators; 3) a credit institution's equity capital increase plan and deadline to fully ensure this law, 35.23, 35.24 and 28.50 35.22 article total capital reserve requirements; 4) after the financial and capital market Commission's request any other information it needs this law article 35.31. 35.31 article. Financial and capital market Commission evaluated and submitted to the credit institution's capital, a retention plan. Financial and capital market Commission approved that plan only if it considers that the implementation of such a plan with a high probability to maintain or provide sufficient capital to credit institutions to comply with this law, 35.23, 35.24 and 28.50 35.22 article total capital reserve requirements within a period of time, the financial and capital market Commission considers appropriate. 35.32 article. If the financial and capital market Commission does not approve the credit institution designed and submitted to capital conservation plan in accordance with this law, the requirements of article 35.31, so: 1) requires that the credit institution's equity capital increase up to a certain level, in certain periods of time; 2) setting stricter limits than the distribution specified in this law and in article "35.26 35.27 26. in article 36.2: replace the first paragraph, the words "and article 35 of this law" with the words and figures "EU Regulation No. 575/2013 for certain equity"; to supplement the article with the third part as follows: "(3) a credit institution shall regularly review the strategy referred to in the second subparagraph and the procedures to ensure that they remain comprehensive and proportionate with the activity of the credit institution, the magnitude and complexity." 27. in article 36.3: turn off first and second subparagraph; to supplement the article with third, fourth and fifth paragraph as follows: "(3) a credit institution information in accordance with EU Regulation No. 575/2013 eighth down the public on their website or choose another appropriate disclosure of information to the media or location. (4) the financial and capital market Commission is entitled to impose the requirement that referred to in the third subparagraph are published more frequently than once a year, and to set deadlines for the publicity. (5) a credit institution 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 14, paragraph 2, first subparagraph, and article 34.1, second subparagraph article 50.9 requirements. " 28. Turn off 36.4, 39, and article 42. 29. Article 43 be worded as follows: "article 43. (1) the credit institution's exposures for which a credit institution shareholders have a significant interest and shareholders — physical person — spouses, parents and children of the Council of the credit institution and 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 with commercial companies in which these persons have significant interest, not to exceed a total of 15 percent of the equity of a credit institution applicable to large exposures restrictions in accordance with EU Regulation No. 575/2013 (2) credits in the first paragraph, those persons who, individually or in total exceed 0.1 percent of the equity of a credit institution, which applies to large exposures restrictions in accordance with EU Regulation No. 575/2013, or 50 000 euro, whichever amount is less, granted unanimously adopted the decision of the Board of Directors of the credit institution. (3) the procedure for the determination of exposures to the first part of this article, the persons referred to in the amount determined by the financial and capital market Commission. " 30. off 44 and article 45. 31. Supplement article 48 by the word "the" with the words "shares and other equity instruments to be included in". 32. Article 49: Supplement 1, after the word "capital" with the words and figures "applicable to large exposures restrictions in accordance with EU Regulation No. 575/2013; Add to paragraph 2, after the word "capital" with the words and figures "applicable to large exposures restrictions in accordance with EU Regulation No. 575/2013. 33. To supplement the law with article 49.1 of the following: ' article 49.1. (1) a credit institution which has received permission to use internal access exposure or risk weighted capital requirement calculation, except permission to operational risk capital requirements for the calculation, in addition to the EU 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 financial and capital market Commission is entitled, in consultation with the European banking authority, establish a benchmark portfolio or portfolios, which differs from the European banking authority established. (3) a credit institution shall prepare and submit, at least once a year in the financial and capital market Commission report on 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 financial and capital market Commission has established the benchmark portfolio or portfolios, which differs from the European banking authority, a credit institution shall prepare and submit, at least once a year, financial and capital market Commission, a separate review of risk weighted capital requirements or calculations of the financial and capital market Commission set benchmark portfolio or portfolios include exposures and financial instruments. " 34. Article 50 of the expression as follows: "article 50. (1) the EU Regulation No. 575/2013 the expected choice for prudenciāl and the determination of the transitional period, the application of the provisions of this Regulation shall determine the Financial and capital market Commission. (2) the financial and capital market Commission is entitled in addition to the set of the business of credit institutions, other regulatory requirements in areas that are not in accordance with EU Regulation No. 575/2013, to reduce the risk of the business of credit institutions and to protect the interests of creditors. (3) the financial and capital market Commission is entitled to impose certain events related to the reporting, preparation and submission of reports, as well as for the supervision of credit institutions in the preparation of the information required, and to provide the necessary authorisation procedures, if not defined by the European Commission. (4) The EU regulations No. 575/2013 458. application of article the responsible authority is the financial and capital market Commission. " 35. Express article 50.9 50.8 and by the following: ' article 50.8. (1) a credit institution which is neither a registered in the Republic of Latvia and the monitoring subject to consolidated parent company and/or its subsidiaries, as well as any credit institution which is not subject to consolidated supervision under EU Regulation No 575/2013, the requirements of article 19 of this Act, comply with the requirements of article 36.2 individually. (2) the Republic of Latvia, the parent credit institution comply with the requirements of article 36.2 of the Act consolidation at group level. (3) a credit institution which is the parent of the Republic of Latvia or of a financial holding company of the Republic of Latvia parent mixed financial holding company subsidiary, comply with the requirements of article 36.2 of the Act consolidation at group level. If the parent financial holding company or a mixed financial holding company controls more than one body, this law article 36.2 consolidation at group level apply only where the credit institution in accordance with this law, the first, 112.2 second, third, fourth, fifth and sixth part covered by the consolidated supervision. (4) where a credit institution which is the parent of the Republic of Latvia, the Republic of Latvia of a credit institution the parent financial holding company or of the Republic of Latvia parent 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 (EU Regulation No 575/2013 4. Article 19 paragraph 1 of the meaning of paragraph) or membership in those institutions or societies such credit institution comply with this law, the requirements of article 36.2, subkonsolidēt. 50.9 article. (1) a credit institution that is not exempt from the regulatory requirements of the individual in accordance with EU Regulation No. 575/2013 article 7 shall respect this law 34.1, 34.2, 21.3, and 21.4 30.5 article individually. (2) a credit institution is subject to consolidated supervision under EU Regulation No 575/2013 first requirements of title II of part, followed this law, 34.1, 34.2, 21.4 21.3 and article 49.1 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 EU Regulation No. 575/2013 first requirements of title II of part as well as provide all necessary monitoring data and information. With the financial and capital market Commission's authorization, a credit institution may not follow this law, 34.1, 34.2, 21.4 21.3 and article 49.1 of the foreign subsidiaries, which are not included in the consolidation group under the EU Regulation No 575/2013 first requirements of title II of part, if the credit institution can demonstrate that these requirements do not correspond to subsidiary legislation of the country of registration. " 36. off 51, 52, and article 54. 37. Supplement article 55 to the sentence by the following: "the financial and capital market Commission establishes requirements for the evaluation of quality of assets and savings." 38. Article 57: Express 1.1 part as follows: "(11) the financial and capital market Commission shall submit documents and the order in which it shall assess the credit Council and Board members, the internal audit head of service, the Director of risk control of compliance activities and foreign credit institution branch manager compliance with the requirements of this law. Financial and capital market Commission shall determine the order in which the credit institution shall evaluate persons exercising functions. '; Supplement 1.2 part after the word "driver" with the words "the Director for risk control of compliance of activity of the person responsible; Supplement 1.3 part after the word "driver" with the words "risk Director, conformity of the operation control to the person in charge"; turn off third. 39. Turn 59.7 article. 40. in article: 59.8 to supplement the first subparagraph after the word "credit" with the words "Council and"; adding to the third paragraph after the word "support" with the words "and the Council" and after the word "discovery" with the words "the members of the Management Board, but the shareholders ' meeting, the members of the Council". 41. Supplement article 62 with 4.1 part as follows: "(41) news on customer credit, credit, payment schedules, including the payments made and the remaining amount of debt after written request of the customer's credit be given guarantor." 42. Add to article 65 of the fourth subparagraph by the following: "(4) a credit institution don't start business relationship with the gaming Organizer or its intermediary credit institution specified in the Lotteries and gambling supervisory inspection decision on the begin or to continue a business relationship with gambling, which the organizer of the action was taken without the laws of the Republic of Latvia of a license, or an intermediary (hereinafter the unlicensed gambling Organizer). Where the credit institution has launched a business relationship with unlicensed gambling, organising it after receipt of the decision of this business relationship shall be terminated. A credit institution shall not be liable for losses incurred by running Lotteries and gambling supervisory inspection decision. " 43. off 74.1 in the first paragraph the words "on the internet, if any". 44. Make article 85 of the third paragraph as follows: "(3) a credit institution a month before it plans to pay a dividend, it shall notify the financial and capital market Commission. Financial and capital market Commission has the right to prohibit a credit institution to pay dividends if the dividends resulted in a credit institution does not respect the law and directly applicable EU legislation in certain indicators and limits that amount (level) affect the dividend payout. " 45. To express the article 88(2), second subparagraph by the following: "(2) a sworn auditor checks the credit institution comply with the first paragraph of this article. For audit services and expert or fiduciary duties of detected violations of the laws or other facts, which is a threat to the obligations of the credit institution or business continuity, or credit the customer's interest or sworn auditor disclaims an opinion or opinion with caveats, sworn auditor shall immediately submit a written report of the financial and capital market Commission. While this report shall also be submitted to the management of the credit institution, if there are no compelling reasons not to do so. " 46. Add to article 100 of the first part of the sentence by the following: "the financial and capital market Commission, the rights and obligations of credit institutions under the supervision of the joint monitoring mechanism established within the framework of the Council of 15 October 2013 Regulation (EU) no 1024/2013 European Central bank entrusted with specific tasks concerning policies relating to the supervision of credit institutions prudenciāl." 47. Article 101 be expressed by the following: ' article 101. (1) the financial and capital market Commission, the monitoring arrangements shall be determined in accordance with this Act and other legislation. Financial and capital market Commission shall each year draw up a monitoring inspection scheme, indicating: 1) financial and capital market Commission Act, this law and other regulations laid down by the financial and capital market Commission's functions and duties of the envisaged measures and the necessary resources; 2) planned monitoring measures applicable to: (a) credit institutions which carried out) this article 101.3 of the law 4.1 parts 5 and 6 referred to the results of the stress test or assessment by the financial and capital market Commission in accordance with this law, article 101.3, point to the risks which threaten its financial stability, or to this law, directly applicable European Union legislation or financial and capital market Commission issued regulatory rules violations; (b)) credit institutions that create systemic risk to the financial system; c) other credit institutions by the financial and capital market Commission's discretion;
3) credit institutions which are intended to determine the increased monitoring, and measures applicable to them; 4) on-the-spot checks of credit plan, showing separately the planned face-to-face examination credit subsidiaries in other Member States, subsidiary of credit institutions and credit institutions the parent company, which is the financial holding company or a mixed financial holding company, financial holding company or a mixed financial holding company or of another subsidiary company. (2) where, under this law, article 101.3 of the evaluation identified the need for financial and capital, the Commission is entitled to take the following measures: 1) increase the number of on-the-spot checks, the credit institution or frequency; 2) to designate the person empowered to constantly be in the credit institution; 3) require that a credit institution submit additional reports or reports more frequently; 4) make credit operational, strategic or business plan for additional or more frequent checks; 5) to make the target inspections to control certain risks that the accession is expected. " 48. in article 101.3: express first, second and third subparagraph by the following: "(1) the financial and capital market Commission verified credit strategies, procedures and measures it implemented to comply with this law, other laws, directly applicable European Union legislation and financial and capital market Commission issued regulatory rules and decisions and evaluate: 1) of the business of credit institutions and the right to possible risks; 2) according to the guidelines of the European banking authority and the European systemic risk Board's recommendations made in the assessment of the systemic risk the risks identified by the operation of a credit institution, the financial system; 3) risks identified in the stress test process in light of the operations of the (business) volume, diversity and complexity. (2) the financial and capital market Commission determined in the first paragraph above examination and assessment and its regularity, depending on the size of the credit institution, the systemic importance of the operation (transaction) volume, diversity and complexity. Financial and capital market Commission not less frequently than once a year, review and update this article in the first part of the assessment referred to in the information on the monitoring of credit institutions included in the programme. (3) on the basis of the checks and assessments, financial and capital market Commission shall decide whether the credit strategy, procedures and measures to ensure adequate risk management and liquidity or credit institutions and equity capital is sufficient for the operation and alleged inherent risk. "; Add to article 3.1 part as follows: "(31) the financial and capital market Commission shall inform the European banking authority of the checks referred to in this article and the Organization of the evaluation process." to make the fourth subparagraph by the following: "(4) the financial and capital market Commission shall immediately inform the European banking authority, if the checks referred to in this article and the results of the evaluation found that the credit institution can pose a systemic risk." Add to article 4.1, 4.2, 4.3, with 4.4, 4.5, 4.6, 4.7 and 4.8 of part as follows: "(41) the financial and capital market Commission in the first part of the assessment referred to in addition to the credit risk, operational risk and market risk assessment evaluated at least: 1) credit management, corporate culture and values, Board and Council members ' ability to carry out their responsibilities; 2) credit institutions business model; 3) credit exposure to liquidity risk, liquidity risk management, including alternative scenario analysis, liquidity management, risk mitigation measures, in particular the liquidity reserves, the composition and quality of the assets they contain, the existing contingency plans; 4) systemic risk assessment in accordance with the criteria referred to in the first subparagraph; 5) If a credit institution authorised to use an internal model for the calculation of capital requirements for credit risk — in accordance with EU Regulation No. 575/2013 requirements of the stress test results; 6) If a credit institution authorised to use an internal model to the market risk capital requirement calculation, — in accordance with EU Regulation No. 575/2013 requirements of the stress test results; 7) credit exposure to concentration risk and its management, including compliance with EU Regulation No. 575/2013 requirements relating to large exposures restrictions; 8) a credit institution's exposure to the geographical distribution; 9 impact of diversification effects) and their inclusion in the risk measurement system; 10) the possibility that a credit institution may incur significant loss not trading book exposure to interest rate risk, and considerations about the possible emergence of such damage; 11) credit exposure to excessive leverage risk; 12) other significant risks to the credit institution. (42) the financial and capital market Commission at least once a year out of credit stress test, which takes into account the results of the assessment carried out in accordance with the first paragraph of this article. Stress test methodology complies with the European banking authority established by the guidelines. (43) in the first paragraph of this article, the assessment of the financial and capital market Commission may apply to the same or a similar approach to credit institutions 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. (44) the application of this article, the first and third parts of the rules and the EU Regulation No. 575/2013, the financial and capital market Commission entitled to require credit institutions: 1) maintained a higher level of own funds laid down in the EU regulation than no 575/2013, which increased the total capital reserve requirements, calculated in accordance with this law, 35.23, 35.24 and 28.50 35.22 article to cover it right for the operation of the credit institution and the possible risks and their elements, not provided for in the EU Regulation No. 575/2013; 2) enhances your strategy, procedures and measures to be taken, 34.1, 34.2, this law or in article 36.2 21.4 requirements; 3 develop a plan) of this Act, other legislation, directly applicable European Union legislation and financial and capital market Commission issued regulatory compliance rules, defining the measures included in a plan due dates; 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; 6) reduced its activities, products or systems right risks; 7) lays down the limit of the officers and employees pay a variable part, which is expressed as a percentage of net revenue and allows the credit institution to maintain a solid capital base; 8) diverts profits after tax for strengthening equity capital; 9) is reduced or not make a distribution of profits or interest payments to shareholders, the first level of the capital instrument holders, if it does not cause non-performance; 10) provide additional reports or more frequent reports, including reports on the credit institution's capital and liquidity positions. (45) the financial and capital market Commission requires credit institutions to comply with this part of article 4.4 requirement of paragraph 1 at least in the following cases: 1) the credit institution has not adhered to this law or in article 34.1, 34.2 36.2 requirements or the EU Regulation No. 575/2013 under certain large exposures restrictions; 2) has identified the risks or the risk elements, which are not covered under the EU 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 reasonable limits according to improve credit structure, processes, mechanisms and strategies; 4) capital requirements is not sufficient because the credit institution 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 institution that received permission to use internal models for the calculation of capital requirements, no longer meets the following conditions of licence; 5) there is reason to believe that credit risks inherent to the transaction valued too low, although the EU regulation are complied with, no 575/2013 and the requirements of this law; 6) a credit institution is authorised 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. (46) on the basis of the assessment carried out in accordance with the requirements of this article, the financial and capital market Commission shall assess whether it is not necessary to establish the equity requirements in addition to those required for the functioning of the credit institution and the inherent risk of potential, taking into account: 1) in accordance with this law, the requirements of article 36.2 credit assessment carried out qualitative and quantitative results; 2) in accordance with this Act and the requirements of article 21.2 21.4 credit institutions established internal control system, as well as the recovery and management plans; 3) in accordance with the first paragraph of this article, the requirements of the financial and capital market Commission, the results of the investigation; 4) systemic risk assessments. (47) on the basis of the relevant requirements of this article are carried out by credit institutions for the operation and alleged inherent risk assessment and taking into account the credit institution's business model, this law 34.1 and 34.2 article risk management organization and possible systemic liquidity risk, which can endanger the Republic of Latvia on financial market integrity, financial and capital market Commission shall assess the need to establish a credit of that special liquidity requirements: 1) request from credit institutions additional reports about liquidity positions or determine the that report should be provided more frequently than the specified in the EU Regulation No. 575/2013 sixth part or other legislation; 2) determine credit institutions other special liquidity requirements, including restrictions on the maturity composition of assets and liabilities of the imbalances. (48) the decision of a special liquidity requirements and the application of penalties, on the basis of the relevant requirements of this article are carried out by credit institutions for the operation and alleged inherent risk assessment and taking into account the credit institution's business model, this law 34.1 and 34.2 article risk management organization and possible systemic liquidity risk, which can endanger the Republic of Latvia on financial market integrity, financial and capital market Commission shall assess the impact of the decision of the other Member States, the stability of the financial system and take into account the liquidity of a credit institution the scores from this law or The EU Regulation No. 575/2013 in the sixth part of the liquidity or stable funding requirements. "; Supplement fifth after the word "procedures" with the words "corresponding to the European banking authority guidelines"; express the sixth part as follows: "(6) in the fifth paragraph of this article if the above calculation shows that the economic value of the credit institution will fall by 20 percent or more of equity due to the sudden and unexpected changes in interest rates of 200 basis points or other European banking authority guidelines specific changes, Financial and capital market Commission requires that the credit institution shall take measures to ensure the conformity of the non-equity trading book exposure to interest rate risk."; Add to article 6.1 of the part as follows: "(61) financial and capital market Commission shall apply the requirements of this article individually and consolidation at group level or subkonsolidēt according to EU Regulation No 575/2013 the first part of section II of the application requirements."; off the seventh; to supplement the article with the ninth subparagraph by the following: "(9) the financial and capital market Commission shall inform the European banking authority referred to in this article the principles of decision-making." 49. To supplement the law with 105.1, 105.3 and 105.4 Article 105.2, as follows: "article 105.1. Financial and capital market Commission gathers with the remuneration policy and practice related information published by credit institutions in accordance with EU Regulation No. 575/2013 requirements, as well as information provided by credit institutions in accordance with this law, article 21.3 of the sixth part, and evaluate remuneration trends and practices. The information referred to financial and capital markets, the Commission shall submit to the European banking authority. rule 105.2. Financial and capital market Commission, using the interval to one million euros, collects information, published by the credit institution in accordance with EU Regulation No. 575/2013 requirements for their officials and the number of employees in the year under review the remuneration equal to or more than eur 1 million, including the details of such officers and employees of their duties, the scope and the main elements of remuneration. The information referred to financial and capital markets, the Commission shall submit to the European banking authority. rule 105.3. (1) the financial and capital market Commission on a regular basis, but not less frequently than every three years to verify whether the credit institution authorised to use internal risk-weighted value of the approach or the calculation of capital requirements, comply with the permit conditions contained in EU Regulation No 575/2013 the third part. In assessing compliance, financial and capital market Commission's special focus on the business of the credit institution, the internal model approach for the application of the new products, the credit institution improve its internal approach based on proven techniques and modern practices.
(2) If the first paragraph of this article is found in the examination that the credit institution's internal approach does not cover all significant risks, financial and capital market Commission requires credit institutions to prevent these failures. To reduce risks to the failures of the financial and capital market Commission may determine the increase factor used for the calculation of equity requirements in accordance with the internal approach, more own capital requirements, or take other appropriate and efficient measures. (3) if the credit market risk capital requirements for the calculation of the internal model used, the test found that the internal model is not or is no longer accurate because by doing retrospective testing in accordance with EU Regulation No. 575/2013 366. Article, it has been established that the number of excess does not meet acceptable levels, financial and capital market Commission requires that the credit institution immediately eliminates this flaw, or revoke the permission to use an internal model. (4) if the financial and capital market Commission finds that credit institution does not meet the internal approach authorisation of the use conditions and the credit institution cannot reasonably demonstrate that non-compliance does not have a significant impact on the risk exposure weighted value or the capital requirements calculated in accordance with EU Regulation No. 575/2013 requirements, financial and capital market Commission requires credit institutions to develop and implement a plan that ensures the prevention of non-compliance. Financial and capital market Commission requires that the credit institution makes changes to its proposed plan to resolve, if the intended measures do not provide full restoration of compliance or implementation deadlines are not acceptable. (5) If there is reason to believe that the credit institution will fail within a reasonable time to restore its internal approach to the authorization of the use conditions and the credit institution are not reasonably established that non-compliance does not have a significant effect on the capital requirements calculated in accordance with EU Regulation No. 575/2013 requirements, financial and capital market Commission shall revoke the permission to use internal access or permission to use it only in areas that offer or within a reasonable time will ensure full compliance with the permit conditions. (6) the financial and capital market Commission shall inform the European banking authority referred to in this article the principles of decision-making. rule 105.4. (1) the financial and capital market Commission not less than annually assesses the quality of the internal approach, analyzing the credit report of the benchmark portfolio exposure and position or risk weighted capital requirements and paying special attention to: 1) approaches, which results in a significant difference in equity requirements in equal exposures; 2 internal) approaches, the results of which indicate substantial and systematic too low equity requirements about discovery or the application of which the benchmark portfolio and credit risk exposures presented a particularly large or particularly small differences in the modeling results. (2) If a credit institution the appropriate internal approach uses substantially different from most of the similar institutions internal approaches and can clearly determine that credit internal approach applied to use the same capital requirements are assessed too low and it is not explained by a credit institution or financial positions of the differences, the risks inherent in the financial and capital market Commission requires that the credit institution shall take such corrective measures applicable to the development of the internal approach that will provide credit risk exposures, the applicable internal approach compliance with the results of the benchmark portfolio results. The ruling on corrective measures, financial and capital market Commission ensures that they do not restrict access to the credit institution's internal risk sensitivity, does not promote internal standardization approach the determination of benefits or an internal approach, do not create the wrong incentives and does not contribute to a variety of credit suitable internal standardisation of approach. " 50. the express article 106 of the first and second subparagraph by the following: ' article 106. (1) the financial and capital market Commission or its authorised representative has the right to check the credit institution, financial holding company, financial holding company, mixed a mixed holding company, subsidiaries of those companies ' activities and that company the operation of the necessary functions with these sponsoring other companies associated person or authorized representatives of those companies. (2) the financial and capital market Commission or its authorised representative has the right to require from the first paragraph of this article, the persons referred to in financial and capital market Commission's functions, the necessary information, look at the first part of the persons referred to in the documentation, check the accounting data and records and to receive a copy of the statement or get out of the first part of this article, the persons referred to in or their agents or employees explanations , information about companies in which consolidation group has investments in, or ask anyone else who would, in order to obtain information on the subject. " 51. in article 108.3: make the second part of paragraph 2 as follows: "2) branches in the suspension or termination of the Republic of Latvia may affect payment, clearing and settlement systems, as well as the liquidity of the financial markets;" turn off 4.1; to make a fifth by the following: "(5) If, within two months from the first paragraph of this article the request will not be accepted for the coherent decision, financial and capital market Commission is entitled, subject to the supervisory authority in the home Member State or the institution of consolidated supervision, within a further two-month period without a consensus to take a decision on the recognition of the importance of the branch."; turn off the 5.1; make the eleventh subparagraph by the following: "(11) if the financial and capital market Commission establishes emergency, it, subject to the availability of limited disclosure rules and using existing information-sharing ways to immediately warn you of this situation in the European system of central banks included in the participating national central banks, the European Central bank and the European systemic risk Board". 52. in article 110.1: make the second paragraph as follows: "(2) the first part of this article are without prejudice to the provisions of the financial and capital market Commission under its competence exchange limited availability information with other Member States in the financial and capital market supervisory bodies and the European Central bank, the European banking authority, the European Securities and markets authority, the European insurance and occupational pensions authority and the European systemic risk Board by saving the information provided limited availability status, as well as publish, in accordance with the requirements of the supervisory authority of the stress test results ". Supplement fifth with 5, 6, and 7, paragraph by the following: "5) the national authorities or bodies which have the responsibility 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. " 53. Article: 112.2 to make eighth-such: "(8) a financial holding company or a mixed financial holding company shall ensure that the Republic of Latvia registered financial holding company registered in Latvia or mixed financial holding company and the Council of the members of the Management Board shall comply with the same requirements and to apply the same limits for credit institutions Council and the Executive Board respectively in article 24 of this law in the first and second subparagraphs, article 25, first paragraph, and article 26, first paragraph in the light of the Republic of Latvia registered financial holding company registered in Latvia or mixed financial holding company activity specifics. "; to complement the ninth subparagraph after the word "purposes" with the words and figures "in accordance with EU Regulation No. 575/2013 down"; to supplement the article with the eleventh subparagraph by the following: "(11) where a financial holding company has a mixed binding requirements of this law and similar laws of the financial conglomerate, in particular with regard to risk management and internal control, Financial and capital market Commission, if it is a consolidated supervision institution is entitled, after consultation with the participating supervisory organs apply this only to the public law requirements of the financial conglomerate. Financial and capital market Commission shall inform the European banking authority and the European insurance and occupational pensions authority decision referred to in this article. " 54. in article 112.3: make the first part of paragraph 2 as follows: "2) in collaboration with the consolidation of other Member States included in the group supervision of credit institutions, plan and coordinate daily monitoring activities, including activities that require concerted decision about specific prudenciālaj requirements and applicable sanctions;" replace the first subparagraph of paragraph 3, the words "with the central banks of the Member States" with the words "with the European system of central banks included the central banks of the Member States and the European Central bank '; to turn off the second, third, fourth, fifth, 4.1, 5.1, 7.1 for the sixth, seventh, and eighth. 55. Article: 112.4 make first and second subparagraph by the following: "(1) the financial and capital market Commission and the other Member States ' supervisory bodies that monitor the registered in the Republic of Latvia in the European Union's parent institution subsidiaries, registered in the Republic of Latvia in the European Union's parent mixed financial holding company or by a subsidiary established in the Republic of Latvia in the European Union the financial holding company of the mother's subsidiaries included in the consolidation group, carried out activities within their competence you need to make a coherent decision about: 1 the consolidation group and consolidation) in the subsidiaries in the group capital adequacy assessment process evaluation and monitoring the implementation of the inspection process by setting all of the Group's consolidation and consolidation of the subsidiaries in the group activity and possible risks inherent to cover necessary capital levels, as well as, if necessary, by setting the whole consolidation group and included in the consolidation Group subsidiary companies the obligation to maintain a higher level of equity capital in accordance with this law, article 101.3 4.4 part 1; 2) actions necessary to address the essential elements under the supervision of the liquidity related findings, including those relating to liquidity risk management organisational structure and adequacy of the procedures, as well as, if necessary, establish special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3. (2) the first subparagraph of this article referred to in paragraph 1 shall adopt the agreed four months after financial and capital market Commission decision making involved in the supervision of the subsidiary bodies submitted a report on the consolidation of the Group's risk and capital required to cover it. The first part of this article referred to in paragraph 2 of the agreed decision month after financial and capital market Commission decision making involved in the supervision of the subsidiary bodies submitted a report which included the consolidation of the Group's liquidity risk assessment in accordance with the requirements of article 101.3 of the law. Adopting coherent decisions also take into consideration the subsidiary risk and capital required to cover the evaluation carried out consolidation Group subsidiary involved in the monitoring institution. "; make the fifth and 5.1 part as follows: "(5) if the financial and capital market Commission and the consolidation of the subsidiary included in the group supervision institution in the second part of the said periods does not adopt a coordinated decision and none of the consolidation Group subsidiary included in the supervisory bodies or the financial and capital market Commission in these time periods have not contacted the European banking authority for settlement of the dispute, the decision of the special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 in part or a decision on supervision inspection the implementation of the process of consolidation at group level, determining the intrinsic activities of the consolidation group and the alleged need to cover risk capital, as well as, if necessary, by setting the whole consolidation group, the obligation to maintain higher capital levels than the minimum capital requirement of total, adopt the financial and capital market Commission, in the light of all the subsidiary bodies of the monitoring of risk and capital required to cover it. The decision on the special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 part and on monitoring the implementation of the verification process of the subsidiary individual or subkonsolidēt, determining the subsidiary operation and the potential risks inherent to cover necessary capital individually or subkonsolidēt, as well as, if necessary, by establishing the subsidiary individual or subkonsolidēt the obligation to maintain higher capital levels than the minimum total capital requirements , adopted subsidiary involved in the supervisory authority, taking into account the financial and capital market Commission, the views expressed and the other subsidiary bodies of the monitoring of risk and capital required to cover it. (51) if the financial and capital market Commission and the consolidation of the subsidiary included in the group supervision institution in the second part of the said periods does not adopt a coordinated decision and one of the consolidation Group subsidiary included in the supervisory bodies or the financial and capital market Commission in these time periods have contacted the European banking authority for the settlement of disputes, financial and capital market Commission, deciding on the special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 part or the decision of the supervisory review process implementation of consolidation at group level or for the operation of the consolidation group and the possible risk inherent to cover necessary capital levels, as well as, if necessary, by setting the whole consolidation group, the obligation to maintain higher capital levels than the minimum total capital requirements, the European banking authority decision. "; replace the eighth paragraph, the words "the decision" with the words "these decisions"; to make the ninth subparagraph by the following: "(9) of this article, the decisions referred to in the first paragraph or any other decision taken, if not coherent decision, reviewed at least once a year or when subsidiary's supervisory body requests a review decision to maintain higher capital levels than the minimum total capital requirements or the decision on the special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 part by submitting a reasoned written request financial and capital market Commission. If the review of the decision proposed by any of the subsidiaries, it may review the Financial and capital market Commission, involving only the subsidiaries concerned supervisory authorities. "; to complement the tenth part of the first sentence, after the word "total" in words and numbers "as well as the adoption of the decision on the measures necessary to address the essential elements under the supervision of the liquidity related findings, including those relating to liquidity risk management organisational structure and adequacy of the procedures, as well as, where appropriate, the applicable special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3"; make the tenth part of the third sentence by the following: "If this referred to in the second subparagraph of article and periods, which are counted from the consolidated supervision of the institution of the date of receipt of the report, agreed the decision is not adopted, but none of the consolidation group included in the supervisory bodies have not contacted the European banking authority for settlement of the dispute, the decision of the consolidation at group level shall be adopted by the institution of consolidated supervision, but the decision on the special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 part in Latvia registered credit institution or individual subkonsolidēt and decision for the Republic of Latvia registered a credit transaction and the possible risk inherent to cover necessary capital individually or subkonsolidēt, as well as, if necessary, a decision on the obligation for credit institutions established in the Republic of Latvia or its subgroup of consolidation to maintain higher capital levels than the minimum capital requirements total assumes financial and capital market Commission and the decision to send in the Republic of Latvia registered institution and the institution of consolidated supervision. "; replace 10.1 paragraph, the words "four months" with the words "periods" and add after the words "body parts" with the words and figures "special liquidity requirements in accordance with this law, article 4.7 and 4.8 101.3 part or the"; replace the eleventh paragraph, the words "the said agreed decision" by the words "those harmonised decisions". 56. To supplement the article with 112.5 part 1.1 the following: "(11) if the information on the first paragraph of this article into the emergency action by the Bank of Latvia, it will immediately notify you of this situation in the financial and capital market Commission and the European banking authority." 57. in article: 112.6 express the fourth part (1) of the following: "1) exchange of information between supervisory authorities concerned and the European banking authority;" to make the fourth paragraph 3 by the following: "3) surveillance testing programme in accordance with this law, the determination of the requirements of article 101, based on the consolidation of the Group's risk assessment carried out in accordance with article 101.3 of the Act;"; to make the fourth part of paragraph 5 by the following: ' 5) of consistent application of prudenciāl in accordance with this law and the EU Regulation No. 575/2013 all consolidation groups in commercial companies; " Replace in the fifth subparagraph, the word "Central" with the words "the European system of central banks, the central bank included the delegate or the European Central"; Add to article 10 by the following: "(10) the financial and capital market Commission is entitled to monitor the activities of the college-related dispute settlement to turn a European banking authority in accordance with EU Regulation No. 1093/2010." 58. in article: 112.7 to supplement the first sentence of the first subparagraph after the word "performing" with the words and figures "and this law and EU Regulation No 575/2013 compliance checks"; replace the first subparagraph of paragraph 1, the word "management" with the word "management" and turn off the words "seventh"; make the first part of paragraph 4 by the following: "4) major sanctions and monitoring measures in emergency situations, by the financial and capital market Commission and carried out in accordance with this law, including the obligation to maintain the highest the level of equity than the minimum total capital requirements and any restrictions developed operational risk measurement approach pursuant to EU Regulation No. 575/2013. "; adding to the third paragraph after the word "procedures" with the words and figures "according to this law and the EU Regulation No. 575/2013" set; to make the fourth part of the first sentence of paragraph 2 in the following wording: "2) on significant sanctions and monitoring measures in emergency situations, by the financial and capital market Commission plans to identify and take on the obligation to maintain higher also the equity level than the minimum total capital requirements and any restrictions developed operational risk measurement approach pursuant to EU Regulation No. 575/2013." 59. in article: 112.9 to replace the first paragraph, the words "other laws" with the words and figures "EU Regulation No. 575/2013; turn off the third; to supplement the article with the fourth paragraph as follows: "(4) the financial and capital market Commission shall determine the arrangements for the submission of the first paragraph of this article." 60. Article: 112.10 to replace the first paragraph, the words "within it, the information in accordance with the laws and regulations" with the words "in it, and these persons are obliged to provide information in accordance with laws and regulations, including the EU Regulation No. 575/2013; adding to the third paragraph after the words "from the" with the word "credit". 61. To supplement the provisions of the third paragraph of article 112.11, after the word "level" with the words and figures "according to EU Regulation No. 575/2013" set. 62. Article: 112.12 express the first part as follows: "(1) if it is necessary to check the veracity of the information that the financial and capital market Commission, carrying out supervision on a consolidated basis, taking on established in another Member State of the credit institution, financial institution, ancillary enterprises (EU Regulation No 575/2013 4. paragraph 1 of article 18, within the meaning of subparagraph), financial holding company, a mixed financial holding company, a mixed holding company or of credit institutions, financial holding company, financial holding company or a mixed mixed holding company subsidiary which are insurance companies or companies that provide investment services which are subject to authorisation (licence), or a credit institution, financial holding company or a mixed financial holding company subsidiary, which is not subject to consolidated supervision, financial and capital market Commission shall send the Member State concerned at the request of the supervisory authority to check the veracity of the information received. Financial and capital market Commission carried out a verification of the information received, if the management authority granting consent, as it can also participate in the examination of the information by the management authority of the Member State concerned, or any other that to make the person authorised. "; to complement the second paragraph after the word "institution" with the words and figures "ancillary services undertaking (EU Regulation No 575/2013 4. paragraph 1 of article 18, within the meaning of subparagraph)" and "after the word" society "with the words" which are insurance companies or companies that provide investment services which are subject to authorisation (licence), or a credit institution, financial holding company or a mixed financial holding company subsidiary, which is not subject to consolidated supervision. " 63. Article: 112.13 replace the first paragraph, the words and figures "to make this law article 101.3 of the seventh part and referred to in article 113, the monitoring activities and to apply the penalties laid down in these articles or the" with the words "to apply the sanctions referred to in this Act, including"; to turn off the second part. 64. in article 112.14: replace the first paragraph, the words "or by another Member State of the credit institution, insurance company or investment company, that is, at the request of the subsidiary credit institution" with the words "or by member credit institutions, insurance companies, reinsurance companies, alternative investment fund manager, investment management company or the investment company's request"; to complement the second paragraph after the word "authorities" with the words "referred to in the first paragraph of the decision"; adding to the third paragraph after the word "law" with the words and figures "and the EU Regulation No. 575/2013. 65. Article 113: replace the introductory part of the first subparagraph, the words "the law" with the words and figures "or financial and capital market Commission has reason to believe that the 12 months of the date on which it has decided on the activities referred to in this article are implemented, will not this law, EU Regulation No 575/2013; turn off the first parts 1, 2, 7, 8, 9 and 10; to supplement the first part of paragraph 11 with the following: "11") to apply this law article 101.3 4.4 measures referred to "; to supplement the article with the fourth paragraph as follows: "(4) the financial and capital market Commission shall inform the European banking authority of the activities referred to in this article for the implementation of the principles." 66. Article 117 of the turn in the third paragraph, the words "or members" and replace the words "other credit institution, as well as a person who, on behalf of a credit institution in adopting relevant decisions, causing civil obligations to the credit institution" with the word "prokūrist". 67. the express article 133 fourth and fifth by the following: "(4) to the court-appointed liquidator of credit institutions apply the provisions of chapter XI of this law, except article 160 article 161, the third paragraph and article 166, as well as the subject of this law and article 172.172.1 administrator rights, duties, and powers. (5) The General Meeting elected the credit institution shall apply the provisions of chapter XI of this law, except article 155 article 156. Second, article 157, the second and third subparagraphs, article 160, the third subparagraph of article 161, 166, 167, 168.. and article 169, as well as the subject of this Act 172.  and in article 172.1 administrator rights, duties, and powers. " 68. off 172. the third, fourth and fifth. 69. To supplement the law with article 172.1 as follows: "article 172.1. (1) the Administrator shall invite third parties to get their belongings and agree on the modalities of its receipt, the statement published in the media and in the Official Gazette of the "journal". (2) property of third parties which are not taken into the possession of, the administrator disposes of this law, article 185 of the order provided for in the second subparagraph and the three months after its disposal invite third parties to lodge a claim for the cost of funds, the statement published in the media and in the Official Gazette of the "journal". (3) funds, for which a third party filed its claims, the administrator, in concluding a written contract, transfer in trust of any other Republic of Latvia established credit institution, the conclusion of the contract notice published in the official media and the edition of the "journal". (4) payments regarding the storage of money is deducted according to the Pricelist of the credit institution of the amount of money owed to third parties. (5) a third party shall lose claims on the credit institution, if in 10 years time is not a credit institution applying for the claims and removed the money it owed. The money that belongs to third parties and for which the barred, agrees to the State as abandoned property. (6) in the second, third, fourth and fifth paragraph of administrator action with third party owned assets attributable to the disposal of the assets of the credit institution's creditors that are not filed their claims. " 70.174. Make the first paragraph by the following: "(1) a credit institution, or part of the goods donated can reclaim under civil law, the provisions of article 1927." 71.196. Article be expressed as follows: "article 196. About this law, directly applicable European Union legislation issued by the institution or the financial and capital market Commission issued regulatory rules or violations of the decisions adopted by financial and capital market Commission may apply the following sanctions: 1) make a public statement indicating the person responsible for the infringement and the nature of the infringement; 2) warn; 3) require that a credit institution or the person responsible for the infringement shall immediately terminate the action; 4) fix the provisional prohibition of the credit institution's Board or Council member or other natural person responsible for the offence, to perform the duties devolved institutions; 5) prescribe the general meeting of the credit institution, the Council or the Board to withdraw from the post credit Board Member, head of the internal audit service, risk Director for operational control of compliance of the liable person, Inspector, head of the branch of a foreign credit institution or prokūrist; 6) put in statutory fines; 7) cancel the licence in accordance with article 27 of this law, first paragraph 1., 2., 3., 7., 8 and 9. " 72. To supplement the law with article 196.1 as follows: "article 196.1. If shareholders of a credit institution's credit risk or impact can threaten its financial stability, prudent and regulations according to the management and operation of or if significant participation in the winning party does not comply with the credit institution's founders, is not financially stable, does not provide, or refuses to provide this law article 28 on the second or third part, the information referred to in the financial and capital market Commission in article 196 of this law the penalties provided the shareholder is entitled to prohibit the use of all of the shares it holds in the vote. " 73. off 197. article. 74. Article 198: make the first paragraph by the following: "(1) if the person does not comply with article 8 of this law, knowingly provided false or incomplete information provided under this Act or obstructed the information required by the Bank of Latvia and the financial and capital market Commission authorized persons to carry out inspection, finance and capital market Commission and the Bank of Latvia is entitled to impose on the person responsible for the infringement fines of up to 1400 14 200 euro."; turn in the second paragraph, the number "32"; turn off the fourth, eighth and ninth; Add to article 10 by the following: "(10) on deposit and other reimbursement fund raising without the financial and capital market Commission licenses (permissions) or if a person has acquired or increased a substantial participation in the credit institution before the article 29 of this law in the first or second part of the notification referred to in the financial and capital market Commission, it during or after the entry into force of this law, article 29 of the seventh part of the decision on the ban to acquire or increase qualifying holding in a credit institution , or reduced the essential ceased the participation, without notifying the financial and capital market Commission, or if the credit institution has acquired a license (permission) for the operation of the credit institution, providing false information or other unlawful manner, does not comply with this law, 32, 34.1, 35.26, or 35.28 35.27 article or EU Regulation No 575/2013 28, 52. or article 63 requirements for payments to equity holders of the instruments included 99. paragraph 1 of article , article 101, paragraph 1 of Article 394, 395. Article 405, 415 article 1 and article 2, paragraph 1 of article 430, 431. Article 1, paragraphs 2 and 3, paragraph 1 of article 451, repeatedly or continually fails to fulfil the EU 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 if the credit institution's Board or Council member does not meet the requirements of this law, financial and capital market Commission is entitled: 1) impose a legal person a fine up to 10 percent from the previous fiscal year's net income the amount corresponding to the amount in accordance with EU Regulation 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 financial and capital market 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 EU Regulation 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; 2) impose for infringement of the responsible natural person a penalty of up to five million euro; 3) impose fines up to earned income as a result of an irregularity or to prevent possible damages to approximately double. " 75.199. Article be expressed as follows: "article 199. On the other, article 198 of this Act not referred to in actions that result in a breach of this Act or the regulations issued on the basis of legislation or directly applicable to the institutions of the European Union issued the legislative requirements, financial and capital market Commission and the Bank shall be the person responsible for the infringement fines of up to eur 142 300. " 76. Article 201 off "196.". 77. To supplement the law with article 201.1 follows: 201.1 "article. (1) the financial and capital market Commission information about the person's sanctions and at the same time, in accordance with article 113 of this law and article 101.3 4.4 part showcases activities on its website, stating the particulars of the person and of the infringement, as well as the financial and capital market Commission issued administrative act and accepted the challenge to the ruling. (2) the first paragraph of this article, the information financial and capital market Commission 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, 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, the financial and capital market Commission's website information is available for a period of five years from the date of insertion. (5) the financial and capital market Commission shall inform the European banking authority of personal sanctions. (6) the financial and capital market Commission is entitled to in the first subparagraph in accordance with the procedure laid down to publish information about other decisions it has taken in accordance with article 113 of this law and article 101.3 4.4 share if they may affect the interests of the client, but you can not threaten the credit or financial market stability. " 78. To supplement the law with article 208.1 as follows: "article 208.1. (1) the financial and capital market Commission issued the administrative act of the law referred to in Chapter XV of the imposition of sanctions, with the exception of the imposition of the fine, the appeal shall not suspend the execution of this Act. (2) the decision on the imposition of sanctions for persons who violated financial and capital market laws, regulations, regulatory, financial and capital market Commission takes into account the financial and capital market Commission of the conditions specified in the law, as well as the possible consequences of a systemic violation. " 79. the transitional provisions be supplemented with 55, 56, 57, 58, 59, 60 and 61 of the paragraph by the following: "55. This law, article 65 of the fourth part shall enter into force on 1 June 2014. 56. This law, 22.1, 22.2 22.0 22.1, 22.2 and article about the counter-cyclical role capital reserve shall enter into force on January 1, 2016. 57. This law, 22.3, 35.10, and 35.12 article 35.11 on a globally significant systemic authority capital reserve shall enter into force on January 1, 2016. From 1 January 2016, the requirement to observe the 25 percent discount from 1 January 2017 — 50 percent, from January 1, 2018, 75 percent, and from 1 January 2019 — 100 percent of this law. 58. This law, 35.13, and 35.15 69.35 article about other important systemic institution capital reserve shall enter into force on January 1, 2016. 59. This law article 35.18 third and fourth subparagraph shall enter into force on January 1, 2015. 60. This law, article 21, paragraph 3, first subparagraph of the said other accrued income presented in the statement of comprehensive income, including initial capital from 1 January 2015 in accordance with the financial and capital market Commission for specific conditions of the transitional period. 61. Article 21.3 of this law the second part shall apply in relation 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. " 80. Add to the informative reference to directives of the European Union to 22 the following: "22) 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.