Amendments To The State Funded Pension Law

Original Language Title: Grozījumi Valsts fondēto pensiju 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 promulgated the following laws of Valstsprezident: amendments to the State funded pension law make the State funded pension Act (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 2000, nr. 7; 2002, nr. 24; 2004, nr. 2, 9.; 2005, no. 12; 2006, nr. 21; 2007, no. 12; 2008, no. 21; 2009, 1., 10., 14. no; Latvian journal nr. 206., 2010; 2012, nr. 189; 2013, 142, 187. No.) the following amendments: 1. in article 11: adding to article 1.1 of the part as follows: "(11) the occupational pension scheme funds Manager, ensure that it is at least the minimum share capital: 1 500 000 euros) if it plans to manage or administer the funded pension scheme funds, an amount not exceeding eur 50 000 000; 2) 1 000 000 euro, if it plans to manage or administer occupational pension schemes that are about 50 000 001 up to eur 100 000 000 from the euro; 3) 2 000 000 euro, if it plans to manage or administer occupational pension schemes that are about 100 000 001 up to eur 200 000 000 of the eur; 4) 3 000 000 euro, if it plans to manage or administer occupational pension schemes, which features more than 200 000 000 euro. "; to make the fourth subparagraph by the following: "(4) occupational pension scheme funds Manager in the development of one or more of the occupational pension scheme investment plans — a systematic set of rules under which occupational pension schemes takes place management and which are set out in each relevant investment plan in the prospectus and the occupational pension scheme members provided basic information. The prospectus and the investment plan of the occupational pension scheme members and the basic information is the Agency's occupational pension schemes, the management contract form an integral part. Occupational pension schemes management according to the investment plan of the occupational pension scheme funds Manager is entitled to make only the prospectus and the investment plan of the occupational pension scheme for the members of the Commission of basic information logging. If the prospect of the investment plan or occupational pension scheme members in the basic information provided does not correspond to occupational pension scheme regulations of the regulatory requirements, the Commission refused the registration. "; replace words in part 4.1 and the number "next January 1st" by the words "six months after an agreement on the amendment to the Agency and occupational pension schemes management contract"; Add to article 4.2 part as follows: "(42) occupational pension scheme for the members of the format and content of basic information, as well as its preparatory arrangements to be determined by the Commission."; to turn off the second and the fifth part of the third sentence; Express 5.1 part as follows: "(51) occupational pension schemes for the payment of a management investment plan administration: 1) standing part of the payment, which is one percent of the investment plan assets average value per year and includes payments for the management of the funds, as well as payments to the holder to third parties by means of the investment plan, except for the expenses incurred in carrying out transactions with investment assets of the plan to repurchase; 2 payment of a variable part), which is the reward of occupational pension schemes for the management of the investment plan, and its size depends on the profitability of the pension scheme. '; Add to article 5.2, 5.3, and 5.4 to 5.5 in part as follows: "(52) order in which occupational pension schemes for the management of payment calculated on the investment plan administration permanent and variable part, as well as payment for the investment plan administration records and withholding procedures shall be determined by the Cabinet of Ministers. (53) the occupational pension scheme funds manager ensures that the maximum amount of payment for the investment plan administration, including permanent and variable payment, calculated for the last 12-month period shall not exceed: 1 1.5 per cent of the investment) plan assets average value of investment plans, investment plans prospectus which is not intended for investment company shares, other equity securities and the securities pielīdzināmo; 2) two percent of investment plan assets average value this part not listed in paragraph 1 of investment plans. (54) the occupational pension scheme funds Manager in the management of the existing occupational retirement schemes and manages accounts funds separate from any other of the funded pension scheme and its management in the management of existing assets. Occupational pension schemes means that is managed in accordance with a defined investment plan (investment plan), occupational pension schemes, funds Manager managed separately from the other assets and overall it investment plan. (55) the occupational pension scheme management includes the following services: 1) investment plan features investment management; 2) investment plan administration of the funds, which include: a) the legal and accounting matters, (b)) the provision of information on the activities of the investment plan, c) the value of the investment plan and investment plan, the determination of the value of part d) plan the activities of the regulatory compliance monitoring, e) investment plan income distribution, f) Agency order and the notice of compliance in respect of transactions with the investment plan features, g) with contractual obligations related to the implementation of the settlement with the investment, h) plan features related to the keeping of the transaction; 3) investment plan marketing (advertising, marketing research and other similar services). " 2. Make the second paragraph of article 11.2 the following: "(2) the application of this article, the first part of the investment plan is comparable to the investment funds, investment funds of the plan, the investment management of the Fund's contribution is comparable to investment management, investment funds of the plan, the administrative management of the investment fund, similar to the administrative management and investment plan marketing comparable investment fund marketing investment management company within the meaning of the law." 3. in article 11.3: Add to the first paragraph of point 1 a "c" section as follows: "(c)) of the funded pension scheme resources that manage scheduled;"; to make the second part of paragraph 1 by the following: "1) Member State licensed investment management company share capital corresponds to article 11 of the Act 1.1 the part, and during the year prior to the application for registration no capital requirements; "; Add to the second part of paragraph 5 with the following: "5), the supervisory body shall promptly inform the Commission if the Member State licensed investment management company's share capital shall no longer complies with this law, article 11 part 1.1."; to make the fourth paragraph (1) of the following: 1) the applicant does not comply with article 11 of this law first or 1.1 part; " make quarter point 7 by the following: ' 7) a management authority of the Member State has not agreed to inform the Commission of the facts, which endangers or may endanger the Member State of the branch or Member State of Latvia, a licensed investment management company's share capital by the amount of non-compliance with article 11 of this law 1.1 part; " make the fifth subparagraph of paragraph 9 by the following: "9) a management authority of the Member State of the branch shall inform the Commission of the facts, which endangers or may endanger the Member State of the branch or Member State of Latvia, a licensed investment management company's share capital by the amount of non-compliance with article 11 of this law 1.1 part;" Supplement fifth with paragraph 10 by the following: ' 10) occupational pension schemes the capital management does not comply with article 11 of this law 1.1 part. " 4. in article 12: express the second part of paragraph 7 and 7.1 as follows: "7) investment in one fund must not exceed 10 percent of the assets of the investment plan and 30 percent of the net assets of the Fund; 71) investment in one alternative investment fund shall not exceed 10 per cent of the assets of the investment plan and 30 percent of the alternative investment fund's net assets, but the total of all contributions to alternative investment funds may not exceed 10 per cent of the assets of the investment plan "; to express the second part of paragraph 13, first sentence as follows: "one investment amount in the venture capital market must not exceed 5 percent of the assets of the investment plan, but the total of all investments in the venture capital market may not exceed 10 per cent of the assets of the investment plan". make the second paragraph 14 by the following: "14) total investment alternative investment funds and risk capital markets must not exceed 20 percent of the assets of the investment plan, pursuant to the second paragraph of this article, the limits laid down in paragraph 7.1 investment alternative investment funds, and the second paragraph of this article, paragraph 13 limits investments in risk capital market;"; turn off the fifth, sixth and seventh. 5. To supplement the law with article 12.1 and 12.2 of the article as follows: "article 12.1. Occupational pension scheme investment consequences of infringements of the provisions of (1) investment plan set out in the prospectus-regulations shall not invalidate the validity of the transaction in question, but the occupational pension scheme trustees of funds are obligated to pay all damages that investment plan participants incurred as a result of such action. Management has the responsibility to develop the procedures that govern the assessment of damages and reimbursement procedures. (2) occupational pension scheme funds Manager immediately, but not later than the day the Commission informed in writing-a breach of the provisions, as well as on measures for the prevention of these irregularities, indicating the deadlines for the correction of irregularities. (3) if the funded pension scheme Manager of funds-the prevention of infringements of the provisions is necessary to realize the investment plan investments, but such investment (asset) disposal of the financial markets is not possible, the management is obliged to buy back those investments of their true value. The fair value of the investment to be in line with the Commission's rules governing the occupational pension scheme investment plan the preparation of the annual report. (4) the provisions of the prevention-occupational pension scheme trustees of funds are obligated to immediately assess whether such activities have caused damages to the members of the investment plan. (5) if the occupational pension scheme funds Manager finds that-as a result of infringements of the provisions of the investment plan participants have suffered damage, the occupational pension scheme trustees of funds must not later than the day after the injury assessment to pay the specified amount of funds paid to the investment plan account. (6) the holder of the funds is the obligation, to monitor, as occupational pension funds Manager of the scheme comply with the investment plan set out in the prospectus-terms, and, finding the infringement, shall immediately notify, in writing, the funded pension scheme and management of the Commission. (7) the holder of the funds is the obligation, to monitor the injury assessment and remediation process, as well as to submit to the Commission evidence that occupational pension schemes, the management estimates the loss corresponds to the actual amount of loss, and information on damages for the transfer of funds to the investment plan account. (8) investment plan in certain investment restrictions are permitted to exceed, if they occurred due to the extreme and adverse events in the financial markets. Occupational pension scheme funds Manager shall immediately inform the Commission of the contribution limit being exceeded in accordance with the second paragraph of article naming policy. 12.2 article. Cash flow (1) occupational pension scheme management has a duty to ensure cash flow according to the contracts concluded. (2) If occupational pension schemes for the management of the cash flow necessary to realize the investment plan investments, but such investment (asset) disposal of the financial markets is not possible, the management is obliged to buy back those investments of their true value. If such a repurchase of investment plan investments have resulted in damages to the members of the investment plan, the occupational pension scheme funds Manager and holder of the funds handled in accordance with the provisions of article 12.1 of the Act, which defines the activities to be funded pension scheme features- in the event of infringements of the rules. " 6. transitional provisions be supplemented with 16, 17, 18 and 19 of the following paragraph: "16. the investments made to the alternative investment fund manager from the date of entry into force of the law, but under the understanding that law should be considered an alternative investment fund, apply this law of alternative investment funds restrictions. 17. Article 11 of the Act 1.1 the minimum share capital set out in part a occupational pension scheme funds Manager provides: 1) by January 1, 2015, 50 percent; 2) by 2016 January 1 — 100 percent. 18. Article 11 of this law and of the fourth part of the 4.2 the requirement for occupational pension schemes of management responsibilities to prepare occupational pension scheme for members of the background information document, article 11 of this law 5.1, 5.2 and 5.3 of part in relation to occupational pension schemes, the payment management for investment plan administration and amendment article 11.3 in relation to occupational pension schemes for the management of fixed capital requirements laid down shall enter into force on January 1, 2015. 19. Occupational pension scheme fund managers ensure that by 1 January 2015 investment plan comply with the provisions of article 11 of this law 5.3 requirements in part that determines the maximum amount of payments for investment plan administration. " The Parliament adopted the law in 2014 on April 3. The President a. Smith in Riga 2014 on April 15.


Related Laws