Financial and capital market Commission, the provisions of regulations no 262 Riga, 6 December 2013 (financial and capital market Commission Council meeting Protocol No 3 p. 47)
The amendments to the "Trust Fund for the preparation of the annual accounts the rules regulations" Issued in accordance with the investment management company, article 72 of the law, the first paragraph and the alternative investment fund managers and law 56. the first paragraph of article 57 and the first part of the article do the financial and capital market Commission of 19 May 2006, the normative regulation No 99 "Investment Fund annual report provisions of regulations" (hereinafter-the rules) the following amendments : 1. Express provisions of title as follows: "open investment fund and alternative investment fund annual report, consolidated annual report and half-yearly reports, to the preparation of the legislative provisions". 2. Express the point 1 and 2 by the following: "1." investment funds and alternative investment fund open to the annual accounts, the consolidated annual report and half-yearly report, the provisions of regulations "(hereinafter-the rules) is binding: 1.1. Latvia and state licensed investment management company (hereinafter investment management company): 1.1.1. preparation of investment funds registered in Latvia's annual report, the half-yearly report and accounts of the sort, 1.1.2. preparing Latvia registered open alternative investment fund's annual report and accounts of the sort; 1.2. external Manager and the open alternative investment fund, which was founded as a company, (hereinafter together: Manager) preparing Latvia registered open alternative investment Fund (hereinafter – the alternative investment fund) annual accounts, consolidated accounts and the accounts of the sort. 2. the investment management company and Manager of each it management existing in Latvia registered investment fund and Latvia registered alternative investment Fund (hereinafter together – the Fund) shall prepare the rules referred to in paragraph 1. " 3. Delete paragraph 3. 4. paragraph 4: Add to paragraph 4 after the words "financial statements" (the relevant fold) with the words in brackets "(consolidated financial statements)" (the relevant fold); replace the words "internet site" with the words "Web site". 5. Supplement with 4.1 and 4.2 point as follows: "4.1 Fund annual report as a single package consisting of: 4.11. financial statements, which include: 4.11.1. asset and liability report 4.11.2. the income and expenditure account, net asset movement 4.11.3 report 4.11.4. attachment, 4.11.5. cash flow statement; 4.12. the investment management company and the Manager of the message; 4.13. notification of investment management company and the Manager's responsibility; 4.14. a custodian, if any, of the message. 4.2 alternative investment fund, which was founded as a company, financial report (consolidated financial statements), prepared in accordance with international financial reporting standards requirements, include: 4.21. report on the financial situation of the end date of the reporting period or in the consolidated accounts for the financial position at the reporting period end date; 4.22. the reporting period was the comprehensive income statement or statement of comprehensive income in the period the consolidated report of all of the reporting period, income and expenses are presented in a separate comprehensive income statement, or in two reports that show a separate calculation of the profit or loss and the individual components of the comprehensive income statement (calculation, which also includes the rest of the profit or loss not recognised income components); 4.23. the reporting period, the cash flow statement or statement of consolidated cash flow statement for the period; 4.24. the reporting period changes in capital and reserves accounts or the consolidated accounting period changes in capital and reserves; 4.25. the annex; 4.26. report on the financial situation of an earlier comparative reporting period start date, if the alternative investment fund accounting policy is applied retrospectively or makes a retrospective of financial statement items, or reclassified financial statements; 4.27. comparative information for the previous period. " 6. paragraph 5 shall be expressed in the first sentence by the following: "sample statement of assets and liabilities, the income and expenditure account, net asset movement statement and cash flow statement item layout specified in that rule 19, 23, and 35 in paragraph 23.7." 7. Make paragraph 6 by the following: "6. the annex shall include descriptive information about the report of assets and liabilities, the income and expenditure account, net asset movement statement and cash flow statement item content as well as reveal other information that could have a significant influence on, or may have a significant effect on the Fund's financial position, performance and cash flows." 8. Add to paragraph 7, after the words "annual report" with the words in brackets "(consolidated annual accounts)". 9. Put the second chapter name as follows: "II. Investment Fund annual report".
10. To make the first sentence of paragraph 9 in the following wording: "the annual report, the investment management company executive protocol statement of approval of the annual report and the full Fund sworn auditors or certified auditor commercial companies (hereinafter referred to as the sworn auditor) report on the annual report submitted to the financial and capital market Commission (hereinafter the Commission), the investment management company in accordance with the procedure prescribed by law." 11. Delete paragraphs 11 and 12. 12. To supplement the provisions of chapter II. 1 by the following: "(II) 1 Investment Fund semi-annual report preparation and filing

12.1 the half-yearly report reflects information on the Fund's financial position and operating results of the review by the beginning of the year to 30 June and include: 12.11. statement of assets and liabilities; 12.12. the income and expenditure account; 12.13. the annex, which includes at least the following information: 12.13.1. detailed information on investment in accordance with paragraph 56, in addition to indicating the contribution ratio of the carrying amount of an investment fund total assets, expressed as a percentage, the Investment Fund's net 12.13.2. assets under 21.8. and paragraph 22.1, 12.13.3. the Fund's investment certificates issued in accordance with 35.7 and 22.2, referred to in paragraph 12.13.4. net assets of investment funds to one investment certificate in accordance with 22.3. and paragraph 35.10 12.13.5. Investment Fund, profitability, taking into account paragraph 65.3 and 65.4. conditions, 12.13.6. relevant information on transactions and events, t.sk. about the changes in the structure of investment, in the reporting period 12.13.7. at the end of the reporting period the level of deviation tracking investment funds that track the performance of a financial index. 12.14. sworn auditor's report, if any, is provided. 12.2 investment management company of the half-yearly report shall be submitted to the Commission in electronic form and ensure that all investment fund stakeholders would have the opportunity to become acquainted with the Investment Fund's semi-annual review of the investment management company and in accordance with the procedure prescribed by law within the time limit. " 13. Add to paragraph 13, after the word "society" with the words "and the Manager". 14. Express 13.2. subparagraph by the following: "13.2. investment management company and the Manager's name, registered office and registration number in the trade register, license and investment management company Manager transaction number and date of issue, but the registered manager registration number Commission;". 15. To supplement 14 to the second sentence as follows: "the manager sign the external message Manager or Fund, which was founded as a commercial company, Chairman of the Board." 16. Express 15, 16 and 17 as follows: "15. Investment management company and manager written notification confirming their responsibility for the financial statements (consolidated financial statements) the truth: that the Board 15.1 the is obliged in accordance with existing legislative requirements to prepare financial statements (consolidated financial statements), which clearly and truly reflect the financial position of the Fund at the end of the accounting year, as well as the review on performance; 15.2. the Executive Board is responsible for the proper keeping of accounts, for the conservation of the resources of the Fund, as well as fraud and other fraudulent activities; 15.3. do financial statements (consolidated financial statements) the items are evaluated consistently using international financial reporting standards; 15.4. or Board decisions and assumptions about annual report (consolidated annual accounts) have been preparing carefully and wisely. 16. notification of investment management company's responsibility to sign the investment management company Board Chairman. Statement of responsibility signed by the Manager of the external Manager or Fund, which was founded as a commercial company, Chairman of the Board. 17. Custodian report: 17.1. Fund custodian name, registered office and registration number; 17.2. the custodian of the list of duties and responsibilities; 17.3. the units and parts, sales and atpakaļpirkšan in consistency with the law, the prospectus and the investment fund investment fund management regulations, the alternative investment fund rules or instruments of incorporation; 17.4. the property of the Fund storage compliance with legal and contractual requirements of the custodian; 17.5. the Fund's net asset value calculation in compliance with the law, this provision, investment fund prospectus and fund management regulations, the alternative investment fund rules or instruments of incorporation; 10.9. the investment management company and the Manager submitted order compliance with the law, the prospectus and the investment fund investment fund management regulations, the alternative investment fund rules or instruments of incorporation and the custodian agreement; 17.7. other information about the Fund, which is essential for the Fund's investors. " 17. Replace paragraph 18, the word "bank" with the words "credit". 18. Make 20.1. the last sentence of the subparagraph as follows: "a credit institution within the meaning of these provisions comply with 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 article 4 paragraph 1 referred to in paragraph 1." 19. Add to 23.2.2. subparagraph after the word "public" with the words "and the Manager". 20. To complement the 25 after the word "licence" with the words "and part". 21. Express the 28 and 29 of the following paragraph: "28. Reward investment management company and the Manager of this item displays the remuneration due to the investment management company and the investment manager of the Fund in accordance with the provisions of the prospectus, the alternative investment fund rules or instruments of incorporation, t.sk. payments to the Commission. 29. The remuneration to the custodian under this item displays the remuneration due to the custodian in accordance with the provisions of the prospectus of investment funds, alternative investment fund rules or instruments of incorporation. " 22. Delete paragraph 30, the words "investment". 23. Make the following paragraph 35.3: "Dividend Fund contributions 35.3. licence and part holders". 24. Add to 22.0.,.,., 35.4.3 35.4.1 35.4.2.,.,., 22.2 22.2 22.3.,.,., 35.10 65.1 65.2 65.3 and 65.4.,.,., paragraph 37 and 38, after the word "licence" (the relevant fold) with the words "and part" (the relevant fold).
25. paragraph 36 be expressed as follows: "36. Dividends and investment of the Fund share holders under this item displays the results of the investment in net assets increase, the part that is not taken into account in determining the unrealized appreciation of investments, the cost amount for the Fund certificates and holders of shares in proportion to their existing holdings of units and number of parts." 26. To complement the provisions of chapter IX. 1 by the following: "IX. 1 38.1 of the cash flow statement the cash flow statement sample 38.11. Cash flows from operating 38.11.1. received interest income 38.11.2. interest expenses paid 38.11.3. investment acquisition expenses. Income from investments 38.11.4 sales 38.11.5. Investment management expenses 38.11.6. Cash and cash equivalents increase/(decrease) from operating activities cash flow from 38.12. financing activities 38.12.1. Income from the units and part sales. investment certificate 38.12.2 and part of atpakaļpirkšan expenses 38.12.3. Dividend investment certificate and share holders 38.12.4. Cash and cash equivalents increase/(decrease) from financing activities No 38.13. Net cash and cash equivalents increase/(decrease) 38.14. during the reporting period, the effects of changes in foreign exchange rates on cash and its equivalents 38.15. Cash and cash equivalents at the beginning of the accounting year, 38.16. Cash and cash equivalents at the end of the year. " 27. To supplement the provisions under Chapter IX. 2 as follows: "IX. 2 explanation of the cash flow statement

38.2 the cash flow statement shows cash and its equivalent income and charges in the year to assess the Fund's ability to generate cash and cash equivalents Fund obligations. 23.8 on the money is considered a cash balance in the Fund which, to demand and requirements with the remaining repayment period up to three months to credit institutions. The cash balance will be reduced by the liabilities to credit institutions on request, and with the remaining repayment period up to three months. 38.4 cash equivalents are to be considered as highly liquid short-term investments, i.e. those that short period of time can be converted to cash and there is little chance that its value will change significantly. Usually, the investment is considered cash equivalents only if, from the acquisition date until the maturity date (repurchase) residual maturity is short, such as three months or less. 38.5 the cash flow statement separately, distribution of cash flows in accordance with the international accounting standard 7. " 28. Add to 24.3. section and paragraph 66, after the word "society" with the words "and the Manager". 29. Replace 24.7. in the second sentence of the subparagraph the word "Board" with the words "and the Manager". 30. Add to paragraph 41 and 51, after the word "public" with the words "and the Manager". 31. Express in paragraph 46 the first sentence by the following: "assets and liabilities in foreign currency the money of the Republic of Latvia in accordance with the accounting units used in foreign exchange rate on the last day of the reporting period." 32. paragraph 47 be expressed as follows: "47. If between the end of the year and the date on which the annual accounts have been approved for issue, received information that provide evidence of conditions that existed at the end date of the reporting period, the following events take account of relevant items of the financial statements. " 33. To supplement the rules by 51.1 points as follows: "51.1 Manager, developing alternative investment fund valuation policies and procedures, taking into account the 2012 December 19 Regulation (EU) no 231/2013 supplementing the directive of the European Parliament and of the Council in 2011/61/EU for exemptions, the General operating conditions, the proportion of the liability for the depositary, transparency and monitoring as referred to in section 7." 34. The deletion of paragraph 57, the word "Euro". 35. Make 68, 69 and 69.1 points as follows: "68. information about the Fund's investment certificate holders and displays information about the Fund's investment certificate and part of investment certificates issued and the total number of parts, which is an investment management company and the Manager held by interested parties. 69. information on the management of the Fund presented information about the investment management company and the members of the Management Board of the Investment Fund Manager, as well as the Manager, officials empowered to manage alternative investment fund, the name, surname and position and with the Fund's management rights and obligations. The news also provides for those fund managers who left this year in the post. information on the Fund managed 69.1 costs investment fund whose resources are invested mainly in the investment management company law article 64 in the funds or common investment, presented not only for the provision of government services the amount of remuneration paid, paid from the Trust Fund's assets, but also withheld from investment funds or common investment vehicles which invest. The alternative investment fund management costs are presented by structuring them according to the alternative investment fund rules or instruments of incorporation. " 36. To supplement the rules by EB 69.2 69.3 69.4 points, and by the following: "EB 69.2 information about transactions investment portfolio of the Fund for effective management of the Fund, which receives coverage under concluded contracts, the financial security guarantee, do receive active sales, repurchase, as well as lend securities or make other transferable securities and money market instruments related business portfolio of efficient management, displays the following information : 69.21. identity of the counterparty; 69.22. form and level of support that has been received by the Fund to mitigate the counterparty risks; 69.23. size of the transactions; 69.24. income amount that is associated with such transactions, as well as direct and indirect costs of the Fund and paid out of the Fund. 69.3 information on fund transactions in financial derivatives, the Fund, which carries out transactions in financial derivatives, displays the following information: 69.31. identity of counterparties, as well as indicate whether that person has a close relationship with the investment management company and the Manager or custodian; 69.32. form and level of support that has been received by the Fund to mitigate the counterparty risks; 69.33. of the underlying risk arising from financial derivatives. 69.4 Fund that follows the financial index performance, disclosures Foundation provides information about the report at the end of the year found the tracking deviations and explains any differences between planned and actual tracking deviation of the reference year. Provides information about the year tracking the difference (annual tracking difference) between the Fund's performance and the financial index, which tracks the funds, performance. " 37. To supplement the provisions under Chapter XI. 1 by the following: "XI. 1 additional requirements of the consolidated annual report for the preparation of consolidated financial statements 69.5 alternative investment fund will be prepared in accordance with international financial reporting standards. 72.2 alternative investment fund, who prepares the consolidated financial statements, develop and approve the preparation of consolidated financial statements, as well as establishing internal control system that ensures the timely receipt of information fair for group companies. 69.7 in preparing the consolidated financial statements comply with the methods of consolidation used the principles of coherence, and use them consistently from year to year. Depart from this principle may only in exceptional cases. Any such cases, as well as the reason for the change in the consolidation method and the change's impact on the consolidated financial statements items explains the consolidated annual accounts. " 38. To supplement the final issues with 72 and 73 of this.: "72. amendments of rules 20.1., 57, paragraph 46 and shall enter into force on January 1, 2014 and are applicable in the preparation of the half-yearly report, the annual accounts and the consolidated annual report for the reporting period that begins on or after that date. 73. Closed investment funds established according to the laws of the investment management company that recognizable on alternative investment funds of alternative investment funds and their Manager law and alternative investment funds and their Manager after the date of entry into force of the law of 7 august 2013 accounting was kept and the financial statements were prepared according to the requirements of these provisions, these provisions set out the sort of accounting and financial reporting principles except EB 69.2 69.3 69.4, and referred to in paragraph 1, applicable to the operations of the Fund. " 39. Make informative reference as follows: "XIII. Informative reference to directives of the European Union and the European Securities and markets authority the guidelines included in the provisions of rules arising from: 1) the European Parliament and of the Council of the 13.07.2009.2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS); 2) European Securities and markets authority 18.12.2012. guidelines and the competent authorities of the UCITS investment management firms (am/2012/832) for ETFS and other UCITS-related matters. " Financial and capital market Commission President k. Zakuli States