Cabinet of Ministers Regulations No. 277 in Riga in 2003 (27 May. No 31, § 14) the rules on the functioning of the Treasury State funded pension scheme in the management of funds Issued in accordance with the State funded pension Act article 11, the first paragraph and the second paragraph of point 1 1. determines the order in which the Treasury manages the State funded pension scheme (the scheme).
2. Treasury scheme funds shall be managed in accordance with the laws of the State funded pension scheme, operating rules, these rules and regulations that govern the operation of the Treasury State funded pension scheme management, as well as according to the Treasury and the State social insurance agency (hereinafter the Agency) for the contract for the management of the scheme (hereinafter management contract).
3. the funds of the scheme recorded and managed separately from the other assets and Treasury for the administration of the assets, the containment of the decisions, and any other activities related to the management of the funds of the scheme, from the Treasury operations of public debt management and Government securities.
4. transactions with the funds of the scheme the Treasury carried out with the mediation of the custodian in accordance with these provisions, as well as according to the Treasury and custodian of the Treaty (hereinafter referred to as the custodian agreement).
5. The Treasury selects the custodian in accordance with the law "on procurement for State or local government needs".
6. The Treasury a custodian agreement provides that a custodian: 6.1. perform settlements with cash, securities and receives remittances, ensure that provide the Securities and other property secure storage as well as serving the scheme accounts in accordance with the management agreement and the custodian the terms referred to in the contract;
6.2. execution of orders the Treasury, if they do not conflict with the State funded pension law, these rules, the management contract and the custodian the terms referred to in the contract;
6.3. acts independently of the Treasury;
6.4. the Act only in the interests of scheme members, except those provisions referred to in paragraph 6.2;
6.5. the funds of the scheme there separately from the other assets of the bank, as well as provide legal means against the scheme creditors if a custodian is declared insolvent.
7. Switch the custodian agreement, Treasury provides to specify the following information: 7.1 Treasury registration number and registered office;
7.2. the custodian's name, registration number, license number starpniekdarbīb in the stock market, the legal address and location of the Executive Body;
7.3. the parties ' rights and obligations;
7.4. the scheme accounts servicing;
7.5. the order in which to execute the orders of the Treasury transactions with the funds of the scheme;
7.6. storage of funds of the scheme;
7.7. the reward of a custodian (the amount and payment of the remuneration arrangements);
7.8. the procedure for the settlement of the custody costs incurred in carrying out transactions with funds or operating the scheme the scheme funds accounts;
7.9. the responsibility for the performance of a contract or not properly carried out;
7.10. the term of the contract;
7.11. the amendment of the contract;
7.12. early termination of the contract conditions and arrangements;
7.13. dispute procedures;
9.09. other provisions arising from the management contract.
8. A custodian agreement Treasury provides the following custodian responsibilities: 8.1 to keep schema features in accordance with these rules and the custodian agreement;
8.2. to follow the Treasury to follow that rule, other legal and contract management requirements for the investment of the scheme, as well as investment rules and constraints, and to report immediately to the Ministry of finance, the Treasury and the Agency for custody of the Treasury to conduct that is contrary to the State funded pension law, these rules, management agreement or custody agreement;
8.3. to follow the scheme value to be calculated according to management conditions laid down in the Treaty;
8.4. ensure that income from the management of the scheme would be used in accordance with these terms and conditions of contract administration;
8.5. to follow in order to properly be carried out transactions with the funds of the scheme certain payments;
8.6. the full extent of the pay scheme, members of the public and third parties for damages, if the custodian with intent or recklessly violated the State funded pension law, these rules, a custodian contract or negligently performed his duties;
8.7. as soon as possible, but no later than the next working day to report to the Agency in writing of any action by the Treasury, which is in violation of the laws and requirements of the scheme in the field of management or which conflicts with the custodian agreement.
9. A custodian agreement Treasury may also contain other conditions which do not conflict with the State funded pension Act, these regulations and the management contract.
10. A custodian contract ceases in the following cases: 10.1 the contractual termination of the custody time limit;
10.2. the parties mutually agree;
10.3. one party unilaterally withdraw from the agreement, the custodian pursuant to the provisions referred to in paragraph 11 time limits;
10.4. the circumstances in which the custodian no longer corresponds to the State funded pension Act, these rules or management requirements of the contract;
10.5. the custodian is declared insolvent;
10.6. the cessation of the operations of the custodian;
10.7. in other custody cases laid down in the Treaty.
11. A custodian contract party unilaterally withdraw from the agreement, the custodian is obliged to notify the other party three months ' notice if the custodian contract does not specify otherwise.
12. The Treasury scheme's funds may invest in securities of the Republic of Latvia (hereinafter state securities), the mortgage in mortgage bonds, certificates of deposit and term bank, subject to the State funded pension law article 12, second paragraph under certain restrictions.
13. Investing in the funds of the scheme State Treasury securities, subject to the following restrictions: 13.1 features a scheme may invest freely transferable securities state their original deployment only in accordance with the Ordinance of the Ministry of Finance of the State securities in circulation on the increase of the amount of the release with the same release. Repeated release of the emission rate is determined according to this release, the last auction average interest rate. National Securities initial deployment can only be purchased in the auction settlement date;
13.2. the scheme may be to invest it in a State securities in circulation;
13.3. the contribution of the scheme is the one issuing State securities may not exceed 20% of the total auction (auctions) the nominal value of the securities sold by the State and the amount of 20% of the total State Treasury management of the resources.
14. Investing in bank term schema, the Treasury is subject to the following restrictions: 14.1 means investment scheme in term of the bank must not exceed 25% of the total management of Treasury funds for existing schemes;
14.2. the investment of funds in term of the scheme is acceptable to the bank, the laws of which the order is received the license for the operation of the credit institution and whose own capital at least three times the legislation set the minimum bank formation capital. This limitation does not apply to transactions in which the Treasury buy securities for a fixed period to expire, and selling them to the previous owner of securities at a fixed price.
15. the transactions in which the Treasury buy securities for a definite period of time and, when time expires, selling them for the previous owner of securities at a fixed price, the State funded pension law article 12 1 and the second subparagraph of paragraph 4.
16. The Treasury investment takes place only on the mortgage in mortgage bonds and certificates of deposit, which are included in the Republic of Latvia registered stock exchange official list or equivalent list (official list) or where emissions regulations provides that the official securities list will include one year from the date of subscription to these securities.
17. Investing in the funds of the scheme, the Treasury followed the principle of diversification of investments, as well as ensure adequate liquidity of the investment management agreement.
18. in order to ensure the short-term financial liquidity and timely delete parts, the Treasury may sell state securities for a definite period of time and, when time expires, redeem it at a fixed price. Such transactions shall not exceed three months and cannot exceed 10% of the total management of Treasury funds to existing schemes.
19. Investing in the funds of the scheme, the Treasury is obliged to obtain sufficient information on the potential contribution of obtained or objects, as well as to monitor their bank financial and economic situation, which in term is or will be invested in the funds of the scheme.
20. the funds of the scheme-allowed in the currency in which costs will be taken from the diagram.

21. The Treasury performs the schema means accounting and prepare reports in accordance with the laws, regulations and financial and capital market Commission (hereinafter the Commission) established reporting procedures.
22. the report on the management of the funds of the scheme by the Treasury in the Ministry of finance and submitted to the Agency.
23. Annual and quarterly reports on the management of the funds of the scheme is publicly available to all schemes in action.
24. the functioning of the Treasury scheme management oversees the Ministry of finance. Monitoring aims to ensure the Treasury is complying with these rules and regulations, issued in accordance with national law for occupational pensions, as well as to protect the interests of scheme members.
25. The Ministry of Finance has the right to: 25.1. make internal Treasury check;
25.2. the written request and receive from the Treasury and custodian information about Treasury accounts and the transactions conducted with the scheme;
25.3. given the Treasury to change the order of the custodian, if the custodian violates these rules or of the custodian agreement or if it is necessary to protect the interests of scheme members.
26. The Treasury is obliged to allow the Finance Ministry authorised persons carrying out the internal Treasury check, free to consult all documents and information relating to the functioning of the Treasury management of the scheme.
27. it is the responsibility of the Ministry of finance to inform in writing the Treasury for inspection deficiencies identified and the copy of the message to send to the Agency and the Commission.
28. This rule 25.3. in the case referred to in subparagraph a custodian contract terminated in accordance with the procedure laid down in the Treaty. In this case the Treasury the next day after the expiry of the custody to the custody of the new order to choose investment plan cash and securities accounts to another bank, entitled to provide custody services.
29. The Treasury expenditure related to the management of the funds of the scheme (including payments to third parties-custodian, sworn auditors, brokers and others) are covered from the remuneration of the investment plan the management of the funds, and the level of remuneration is specified in the prospectus in the investment plan.
30. Be declared unenforceable in the Cabinet of 12 June 2001 No. 253 of rules "rules for the functioning of the Treasury State funded pension scheme management" (Latvian journal, 2001, no. 97).
Prime Minister e. Repše Finance Minister v. dombrovsky Editorial Note: the entry into force of the provisions by 31 May 2003.