Provisions On Technical Provisions And The Covering Of Reconciliation By Currency Types

Original Language Title: Noteikumi par tehnisko rezervju un to seguma saskaņošanu pa valūtu veidiem

Read the untranslated law here: https://www.vestnesis.lv/ta/id/156615

Financial and capital market Commission Regulation No 54 in 2007 (26 April. Nr. 18, 2. p.)
Provisions on technical provisions and the covering of reconciliation through the types of currency Issued under the supervision of insurance companies and the law of the third paragraph of article 56.1 and law "on private pension funds ' in article 23.1 fifth i. General questions 1. determines the allowable deviation of the technical reserves the technical reserve coverage and coordination on currency.
2. The rules are binding on the insurance company, mutual insurance associations and cooperatives of the Member insurer not affiliates (hereinafter insurer), as well as private pension funds, which according to license conditions have put the cost of the plans, defined contribution plans with a certain guaranteed return or retirement plans, which provide cover against biometric risks (hereinafter Pension Fund).
3. Insurers and pension funds to develop and approve policies and procedures are provided and documented and the technical provisions cover coordination by currency types.
4. To cover the technical provisions will be applied in real estate value is expressed in the currency of the country in whose territory the immovable property is situated.  
II. The insurer and the technical provisions cover coordination by currency types 5. Insurer consists of covering technical provisions in assets in the currency in which technical provisions established for the performance of insurance obligations under the concluded contracts of insurance and reinsurance, i.e., taken with the currency agreed in assets. The requirements of this paragraph are considered to be met if the LCY create technical provisions are covered by assets in dollars or euros.
6. cover the technical provisions in non-harmonised monetary assets must not exceed 20 percent of the amount of the technical reserves in that currency. This requirement does not apply to the cases referred to in paragraph 7.
7. If the amount of the technical reserves in one currency is less than 7 percent of the other currencies to create the total technical provisions, then it is acceptable that the cover is constructed with the active currency other than the currency in which the relevant technical provisions.
8. the rules do not apply to the equivalent value of the created assets technical reserves unit-linked life insurance. 
III. Pension and their coverage of the technical reserves by matching the types of currency 9. type of pension fund pension coverage for technical provisions of pension fund assets in the currency in which established pension technical reserves to meet obligations to the pension plan the pension plan participants.
10. Pension coverage for technical provisions in non-harmonised monetary assets must not exceed 30 per cent of the pension amount of technical provisions in the relevant currency. 
IV. final question 11. Be declared unenforceable financial and capital market Commission on 20 May 2005, the provisions of no. 59 "rules on technical reserves and their coverage through the exchange of reconciliation". 
Informative reference to European Union directives, the regulations include provisions resulting from: 1) of the European Parliament and of the Council of 22 June 1988 on the second Directive 88/357/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC;
2) of the European Parliament and of the Council of 18 June 1992 Directive 92/49/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (third non-life insurance directive);
3) of the European Parliament and of the Council of 5 November 2002, Directive 2002/83/EC concerning life assurance;
4) of the European Parliament and of the Council of 3 June 2003 of Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision.
Financial and capital market Commission President When the U.