Financial and capital market Commission, the provisions of regulations no 228 Riga 2013 17 October (financial and capital market Commission Council meeting Protocol No 2.40 p.)
The legislative provisions on requirements for the investment fund investment objects, and the types of action identified funds Issued in accordance with the investment management company, article 61 of the law of the sixth and the fourth part of article 65 of title I General provisions 1. "the legislative provisions on requirements for the investment fund investment objects, and the types of action identified funds" (hereinafter-the rules) determines: 1.1. investment fund investment management company within the meaning of the law (hereinafter funds) investment objects and transactions by the investment management company (hereinafter – the company) on behalf of the Fund; 1.2. the Fund that replicates the composition of the index of securities, Fund, t.sk. funds with leverage funding, which follows the financial index, a regulated market traded funds; 1.3. the disclosure of information in the prospectus, investors of the Fund provided background information and other promotional materials for these funds and transactions. 2. The rules are binding on the investment management companies, setting up and managing the Fund in Latvia.
(II) transferable securities section 3. Transferable Securities is the investment management company Act (hereinafter Act) requirements according to the contribution, if possible losses from investments in financial instruments is limited and does not exceed the value of their purchase (partially paid financial instrument, the full purchase value) and if they meet all of the following criteria: 3.1. liquidity does not restrict the statutory investment certificate atpakaļpirkšan requirements; 3.2. they are reliably measurable; 3.3. for them sufficient information is available; 3.4. they have seized without restrictions (not negotiable); 3.5. These correspond to the investment policy of the Fund; 3.6. the risks involved to fund adequately address risk management process, as well as continuously evaluates to transferable securities to risks and the impact on the risk profile of the investment portfolio as a whole. 4. Regulated market listed or traded (hereinafter RT) the transferable securities are identifiable as liquid and without restrictions, unless the company seized does not have information to the contrary. 5. where a transferable security or society not RT is in possession of information which suggests that investment in transferable securities of DPL may embarrass atpakaļpirkšan demands the units, the company evaluated the transferable securities liquidity risk, taking into account the following factors: transferable securities emission 5.1 and turnover; 5.2. where the price is determined by supply and demand in the market, the total amount of emissions and emission by Fund Manager plans to buy, as well as the possibility of sale or purchase and transaction time required to perform an assessment of the transferable securities margin – compared with the turnover of a certain period of time; 5.3 in some cases for a certain period of time in the independent made transferable securities purchase and sale price assessments that may indicate transferable securities in comparative liquidity and purchase and sales opportunities, as well as to provide the available price comparison; 5.4. market intermediaries and market support, carrying out trade in transferable securities concerned, the number and quality of the analysis, the assessment of the transferable securities in the secondary market activities. 6. where a transferable securities liquidity is assessed as insufficient, following the acquisition of transferable securities or holding the Fund investment portfolio is permitted only if there is sufficient liquid in the portfolio of transferable securities amount to ensure the investment certificate atpakaļpirkšan requirements. 7. Transferable Securities is reliably measurable, if the following information is available: 7.1. financial instruments – RTT accurate, reliable and regularly updated (periodically) price, which is the market price or prices that are determined by the ranking system that is independent from issuers; 7.2. other financial instruments – regular (recurring) made the assessment based on transferable securities of the issuer or investment information, prepared a study of the financial instruments market law or comparable requirements. 8. Adequate information on transferable securities is: 8.1 RT to transferable securities-market available in regular, accurate and comprehensive information about the securities or, where appropriate, of the securities portfolio; 8.2. other financial instruments – the public a regular and accurate information about securities or, if necessary, of the securities portfolio. 9. Transferable Securities that are not RT, can be considered to be seized without restriction only if the company is evaluated the possibility of disposal of transferable securities and recognised that investing in transferable securities, it will be possible to provide the units atpakaļpirkšan requirements. 10. the company according to the Fund's risk management policies and risk management procedures to continually assess not only transferable securities concerned with risks, but also their impact on the investment portfolio of the Fund's risk profile. 11. For transferable securities, if they meet 3-10. the requirements referred to in paragraph 1, is to be recognized, the following investment objects: 11.1. investments closed the alternative investment funds which are founded as investment company or fund – case togetherness (constituted as investment companies or as unit trusts) or partnerships (constituted under the law of contract) and meet the following criteria: 11.1.1. investment companies are bound by the principles of corporate governance and partnerships are binding on the corporate governance principles which apply to commercial companies or are equivalent to the corporate governance principles adopted by the commercial companies; 11.1.2. the closed alternative investment fund manager or external Manager, who manages the Fund on behalf of its features, are bound by the laws of the country in certain investor protection requirements; 11.2. investments in financial instruments, which are based on other assets or associated with return of assets, which may vary from the requirements of the law According to the Fund's investment objects. 12. The evaluation of the alternative investment fund enclosed the corporate governance principles, take into account the following: 12.1 the holder of the investment share. rights attaching to the closed alternative investment fund prospectus (Charter or other contract to which the Fund is established based) and providing: 12.1.1. the right to vote for the closed alternative investment fund-related matters in the decision making process (t.sk. closed the alternative investment fund manager approval and replacement the amendment to the prospectus, or the rules of operation, changes in investment policy, merger, liquidation); 12.1.2. the right to control closed the alternative investment fund investment policy in the prospectus or the compliance with the rules of operation; 12.2. in the alternative investment fund enclosed the property is separated from the Manager and active to closed the alternative investment funds apply the provisions of the winding-up, which protects the holder of the investment share ownership. 13. the company shall assess whether the investing Fund enclosed alternative investment fund shares are following the law and the Fund investment restrictions laid down in the prospectus requirements.
Title III money market instruments 14. Money market instruments are legal requirements according to the contribution, if all the following conditions are met: 14.1 or not RT and meet the criteria-"usually traded on the money market"; 14.2. These are liquid; 14.3. it is precisely measurable at any time. 15. national and local governments in the internal loan promissory notes, certificates of deposit, short-term promissory notes and bills of exchange accepted by the bank's financial instruments, which meet the criteria-"usually traded on the money market". 16. Money market instruments is recognised as financial instruments usually traded on the money market, if they meet at least one of the following criteria: 16.1 original maturity until their deletion not more than 397 days; 16.2. the remaining period until the deletion not more than 397 days; 16.3. the yield according to money market conditions are updated regularly, at least every 397 days; 16.4. the risk profile, including credit risk and interest rate risk corresponds to the risk of financial instruments whose maturity not more than 397 days, or the yield adjustment under paragraph 16.3. 17. Money market instruments which generally are traded in the money market and which is recognised as a liquid, RT and accurately evaluated at any time, unless the company does not have information to the contrary. 18. Money market instruments are considered to be liquid if they can sell without a significant loss in a short time, enough to meet the obligations of the company to redeem certificate prospectus to investors in the Fund on time and in order. 19. In assessing the liquidity of money market instruments, take into account the following factors: 19.1. marketing and pricing (quotes) frequency; 19.2. the number of intermediaries who are ready to buy and sell instruments and maintain a specific instrument in the market, the nature of trade (nature of the marketplace trades), t.sk. the time required to sell the instrument of offer method of payment and the money market instruments of transfer (transfer) mechanism; 19.3. the emission or emission programs; 19.4. the opportunity to redeem, redeem or sell money market instruments in a short amount of time (for example, up to seven working days) without significant losses, as shown by the low commissions and no big difference between the buying and the selling price, and a brief settlement (settlement delay). 20. In assessing whether that investment will be provided in the relevant money market instrument does not adversely affect the liquidity of the Fund (the obligation to redeem units from investors for the period specified in the prospectus and order) take into account the following factors: 20.1. Fund's investment certificate holder structure and concentration (for example, by geographic criteria or the specific nature of the concentration of licence licence holders); 20.2. profile of the typical investor (investor, the Fund); 20.3. the quality of information on the Fund's cash flows; 20.4. the limits laid down in the prospectus of the investment certificate atpakaļpirkšan. 21. If any of the 19 or 20 of the factors referred to in paragraph evaluations suggest that it has a negative impact on the liquidity of the instrument, appropriate risk management process to assess whether money market instruments is still recognized as a liquid. 22. in the light of article 19, paragraph 21 of the money market instruments of liquidity, the company plans to fund the appropriate investment portfolio structure and the expected cash flows, to match the expected cash flows from the investment portfolio of the Fund in the relevant liquidity securities sales opportunities. 23. Money market instruments can accurately assess at any time if there is an accurate and reliable evaluation system that meets the following criteria: 23.1. ranking system lets you calculate the net value of the Fund's assets according to the value of an investment portfolio of the Fund financial instruments may be exchanged (sell) the transaction between knowledgeable, willing and financially independent persons; 23.2. the valuation is based on market data or on valuation models, which use the resulting cash market value of the instrument are not significantly different from the market value (not the individual securities or the investment portfolio as a whole). 24. Money-market instruments that are not RT is law according to investment objects, if the following requirements are met: 24.1. they are usually traded on the money market under 16 the criteria laid down in point; 24.2. they are liquid according to paragraph 18; 24.3. they can accurately assess any time under paragraph 23; 15.2. they are freely transferable; 15.2. for them have the appropriate information to assess the risks associated with an investment, t.sk. assess the credit risk associated with investments in those instruments, according to the 25-27. 25. information on money market instruments that are not RT and issued by a company, the securities of which are the RT or the investment in money market instruments covered by the protection of investors (in accordance with article 62 of the law of the second paragraph, the requirements of point 5), or for money market instruments that are issued by State authorities or the international financial institutions, but which are not guaranteed by a Member State or, in the case of the Federal State of one of the members of the Federation – is proper if the following requirements are met: 25.1. information on emissions or emissions program and the issuer's legal and financial status is available before the money market instrument; 25.2. the information referred to in paragraph 25.1 is regularly but not less frequently than once a year, restored, and is updated after each significant event; 25.3. the information referred to in paragraph 25.1 is verified by an independent, qualified third party. This person is specialized in financial and legal documents, and subject to verification of good faith on the part of the professional standards; 25.4. is available and reliable statistics on the issue or the issuance programme. 26. information on money market instruments that are not RT and issued or guaranteed by a credit institution (in accordance with article 62 of the law of the second paragraph, the requirements of paragraph 4) is appropriate if the following requirements are met: 26.1. information on emissions or emissions program, or on the issuer's legal and financial status is available before the money market instrument; 26.2. the information referred to in paragraph 26.1 are regularly but not less frequently than once a year, restored, and is updated after each significant event; 26.3. reliable statistics are available on emissions or emissions programs or other data, which allows you to assess credit risk enough in relation to investments in financial instruments. 27. information on money market instruments that are not RT and issued or guaranteed by a Member State or the Member State authorities, other State or Federal Government in the case of one of the members of the Federation, the European investment bank and international financial institutions, where one or more Member States are members, they have the appropriate when information on emissions or emissions program, or the issuer's legal and financial status is available before the money market instrument. 28. Money market instruments which meet 14 conditions listed in the law, but does not meet the requirements of article 62, is considered the law compliant investment objects that can invest up to 10 percent of the Fund's assets. 29. Money-market instruments that are based on investments in precious metals, t.sk. precious metals certificates are not considered appropriate for the law to fund investment.
Title IV deals in the investment portfolio of the Fund effective management 30. using the Fund's business portfolio, efficient management the company shall ensure that such transactions comply with the fund prospectus declared investment objective and investment policy, as well as additional risks to those referred to in the prospectus of the Fund's risk profile and investment-related risk analysis in the description. 31. The company shall ensure that the operations of the Fund for effective portfolio management is carried out in the best interests of the Fund and all revenue reduced by these transactions with the related direct and indirect costs, are credited to the Fund assets. 32. The company shall ensure that the assets of the Foundation are made only to portfolio management effective operations that meet the following criteria: 32.1. securities lending business case have the opportunity at any time to undo the aizdoto securities or terminate contracts; 32.2. reverse repo transaction case has the option at any time to request money for financial instruments amortised acquisition value (accrued basis) or market value or terminate contracts when receiving the money. If the money can be claimed, the market value of the reverse repurchase agreement market value used in the calculation of the net asset value of the Fund; 32.3. the repurchase transaction in the event have the opportunity at any time to undo all transactions involving securities involved or terminate contracts. 33. Fixed-term repo and reverse repo agreements, which shall not exceed seven calendar days shall be regarded as contracts with the ability assets be withdrawn at any time. 34. the company, which uses the business portfolio of the Foundation for effective management, take into account these transactions, developing the Fund's liquidity risk control process to ensure that the Fund's ability to meet the requirements of atpakaļpirkšan units. 35. For transactions in portfolio management to ensure effective fund prospectus shall provide the following information: 21.8. indicate which transactions referred to in article 33 of the law, will be carried out, providing a detailed description of the risks associated with each of the transactions concerned, t.sk. counterparty risk, and possible conflicts of interest;
35.2. provides an explanation of the impact of these transactions the operations of the Fund; 35.3. provides explanations, what direct and indirect expenses and fees of the Fund (Costa and fe) of the Fund's resources are related to the transactions of the Fund investment portfolio of efficient management of the Fund withheld the proceeds of these transactions. In these editions and the cost does not include the hidden income. Revealing the person receiving these payments, identity, as well as indicate whether such persons have a close relationship with the company or the custodian.
Section v deals with the derivative financial instruments derivative financial instruments 36., t.sk. credit derivatives, is law according to investment objects, if they meet all of the following criteria: 36.1. they act 65 allows the first paragraph of article 1, paragraph of the underlying credit risk transfer regardless of other risks associated with these assets;
36.2. they do not provide for the delivery of other assets or transfer, t.sk. in monetary terms, as only the assets that are the law, according to the Fund's investment objects; 36.3. not traded on a regulated market (hereinafter – RTA) derivative financial instrument counterparties (hereinafter the counterparty) corresponds to article 65 of the law in the first part of the requirements of paragraph 2 and RTA derived financial instruments reliable and verifiable assessment throughout the duration of the contract corresponds to 38-39; 36.4. the related risks are adequately covered in the risk management processes and internal control system-specific risks that arise due to the asymmetry of information between the public and the counterparties if the counterparty has sensitive information about companies whose assets are credit derivatives base assets. 37. the company according to the risk management policy and procedures and especially carefully assess the risk referred to in paragraph 22.6 in cases where the counterparty has the company or the grantor of credit (credit issuer) the related person. 38. The public each day performing RTA derivative financial instrument and verifiable reliable evaluation, determining its true value, which does not rely solely on the counterparty's reported sales prices (market quotation) and who meet the following requirements: 38.1. the evaluation is based on the instrument's reliable current market value or, where such value is not available, a pricing model that is based on recognized methodologies; 38.2. the assessment test (verification), i.e., the process by which regularly checks the market value or model the entered data accuracy and independence, take one of the following forms: 38.2.1. by from unit, responsible for asset management, an independent public body which employees have professional experience and technical equipment for carrying out this task; 38.2.2. it is performed from the counterparty's independent third party in accordance with regularity and in a way that society's ability to control it. 39. The public can use scoring models developed by an independent third party. If the model has been developed by the public entity responsible for the management of the Fund's assets (e.g., unit that deals with the RTA financial derivatives business closings), to assess and review the development of qualified, independent of the model. Whatever happens to that unit testing the model, including the mathematical calculation assessment, assumption and using the software. The data is not allowed (for example, information about the fluctuations or correlations), which previously have not been evaluated by the company and accepted by including in its derivative financial instruments valuation policies and procedures. 40. Derivative financial instruments fair value is the value at which the asset could be exchanged or a liability to cover transaction between knowledgeable, willing and financially independent persons. 41. Financial derivatives valuation procedure which provides the derived financial instrument RTA accurate and independent assessment in relation to the evaluation of credible and verifiable, determining its true value, means: 41.1. in relation to the exact evaluation of the ability of the public throughout the derived financial instruments while operating reliably and with reasonable accuracy to assess the contribution of the Fund concerned according to its fair value, reflecting its market value at the time; 41.2. with regard to the evaluation of the independent – to ensure the company's internal control system and the means to carry out the risk analysis unit that is independent from the management of the assets of the Fund or the investment activities of the investigating bodies and the counterparty, or if these conditions cannot be met, an independent third party. The company shall ensure that the independent third party could adequately assess all RTA derivative financial instruments, intended for use on the Fund account, types, having regard to their nature and complexity. 42. The company shall observe due diligence in making decisions about the RTA assessment of derivatives of functions delegation or delegated service interruption, designing and implementing order in which society assesses and tests the person that will be delegated to the RTA financial derivatives valuation function, its competence and the ability to reliably, professionally and effectively make RTA the Fund derivative financial instruments, as well as the evaluation procedures continuous performance evaluation for this person. 43. If the Fund is closed in the name of total return swaps (total return swap) or transactions in financial derivatives with similar characteristics of the transaction, the company shall ensure that the assets involved in the swap, meet the law. 67.66 and the investment restrictions laid down in article. For example, switch a (unfunded) unfunded total rate of return swap, these restrictions also apply to the transaction (swapped out) the Fund's investment portfolio. 44. the company, on behalf of the Fund closing total return swap or contract with similar characteristics of the transaction, take into account the risk of the underlying value, the calculation of the amount of the transaction, the concentration risk under the financial and capital market Commission 11.11.2011. regulatory arrangements no 242 "and the Fund's overall risk exposure to a counterparty of the size calculation regulations rules". 45. If the agreement between the counterparty and the public gives the counterparty the right to decide on the Fund's investment portfolio composition changes, or Manager, or a derivative financial instrument underlying asset changes, then such an agreement be considered a fund management service delegation and it law fund management service for delegation. 46. the Fund, which is closed in the name of the total rate of return swap contracts or contracts with similar characteristics of the transaction, provide the following information in the prospectus: 46.1. clear description of the strategy used by the Fund database assets or certain strategies of investment objective and investment portfolio of the Fund or index; 46.2. the total rate of return swap agreement or contract with similar characteristics of the transaction the transaction partner or partners; 46.3. Description of counterparty default risk and its impact on the profitability of the Fund; 46.4. whether and to what extent the counterparty has the right to decide on the Fund's investment portfolio composition or derivative financial instrument underlying asset changes, and transactions with the Fund or investment is required the consent of the counterparty; 46.5. the identity of the counterparties, if it is involved in the management of the investments of the Fund under this provision, paragraph 45.
Title vi relating to the effective management of the portfolio of transactions and financial derivatives collateral received 47. Engaging in transactions with the RTA and the financial derivatives portfolio management transactions effectively, the security is recognized as a suitable counterparty risk management and continuously meet all the following requirements: 29.3. received collateral complies with article 67 of the law requirements. Get security, not money, is highly liquid and RT or traded in the multilateral trading system with transparent price discovery process, which it can sell as soon as the price, which is close to the pre-sales assessment; 47.2. the received collateral is assessed at least once a day and active, which has a significant price fluctuations, it is not considered appropriate, unless it is taken with due care in the value of the discount (haircut); 47.3. the coverage is very high quality, i.e. the issuer in accordance with the company's assessment possesses a high kredītkvalitāt; 47.4. the securities issuing, received from a counterparty's independent party and cross-correlation between the value of the collateral and counterparty performance is not high; 29.5. one or more counterparties received coverage is sufficiently diversified. On diversified enough to be considered a guarantee of in particular the risk of the issuer or counterparty concentration risk no more than 20 percent of the Fund's net asset value; 29.6. the society created in the internal control system provides to get security risks, t.sk. the operational and legal risk management process effective, which covers risk identification, evaluation and control; 29.6. property rights Exchange (title transfer) the case shall be referred to the holding of received collateral Fund custodian. In other cases, you can pass a received security for the holder of the funds, which is supervised by the financial services supervisory authority and who is not related to the collateral provider; 47.8. received coverage is at the disposal of the Fund, and it has the right to use without prior coordination with the counterpart; 29.8. get security, not money, not alienated, reinvested or mortgaged, or otherwise encumbered with rights in rem; 47.10. Security has received the money, may: 47.10.1. to deposit, subject to the requirements of article 63 of the law; 47.10.2. to invest in high-quality government bonds; 47.10.3. using buying assets with atpakaļpārdevum (reverse repo) transactions, provided that the transactions are carried out with the credit institution that is supervised by the financial services supervisory authority, and the company may at any time withdraw the entire amount of the purchase value amortised; 47.10.4. to invest in short-term money market funds, whose operating rules evaluation shows that their operation complies with the financial and capital market Commission 11.11.2011. regulatory arrangements No. 250 "regulatory rules for money market funds, the use of the name". 48. the security of money Invested, the company complied with this provision of the collateral requirements 29.5 diversification. 49. the Fund for which the securities received is equal to or more than 30 percent of the value of the Fund's assets, the company's operational risk management policy development with security related received liquidity risk control procedure which provides for regular stress tests and financial market under normal and extreme liquidity, covering at least the following elements: 30.5. stress test scenario analysis, including calibration, certification and the sensitivity analysis , development; 30.6. the empirical approach to impact assessment, including the retroactive checks, liquidity projections; 30.6. the restriction or loss threshold or threshold of tolerance; 49. risk reduction actions to reduce losses, including the value of the discount applied policy and protection or insurance kredītkvalitāt the deterioration of situations (gap risk protection); 30.8. public officials provided the report frequency. 50. the Fund, which receives the support, the company shall establish and maintain documented value discounting policy, which provides the framework for each security type of the asset received appropriate value discounting. Developing value discounting policy, take into account the inherent characteristics of the assets, such as kredītkvalitāt, price volatility, and in accordance with paragraph 49 of the stress test results. 51. The prospectus provides information indicating the security policy, t.sk. allowed security modes, callable securities value discounting policies, as well as obtaining the money, its security-policy and the risks associated with these investments.
Section VII derivative financial instruments, which are the underlying financial indexes 52. Investment in financial derivatives, which are financial assets database indexes is the law, according to the investment object, if the financial indices comply with the following criteria: 52.1. they are sufficiently diversified in such a way that the following requirements are met: 52.1.1. index is designed to include a single underlying asset price changes or excessive trading activity would not affect the performance of the whole index; 52.1.2. If the index is composed of the law, according to the investment objects, index composition is at least diversified in such a way that each individual index constituent base of assets does not exceed 20 percent of the entire index in the underlying position in the totals. Where justified by the specific conditions of the market, reflected in the Fund's prospectus, one of the index is composed of the existing base of assets is allowed to increase the rate to 35 percent. Index to leverage funding, one of the base of the active effect on the total return index, taking into account the leverage funding, meet identical restrictions; 52.1.3. If the index is composed of assets that are not identifiable as law the appropriate investment objects, index composition (structure) corresponds to the level of diversification, as determined in paragraph 52.1.2; 52.2. the market reflects an adequate standard to which the index applies, subject to the following requirements: 52.2.1. index adequately reflect the representative group of the underlying performance (performance); 52.2.2. the index periodically revised or rearranged (re-balance) its structure to ensure that it continues to reflect the performance of the markets to which it applies, according to publicly available criteria; 52.2.3. index consists of the existing base sufficiently liquid assets to a third party if necessary, it would be possible to replicate the index; 52.3. they are duly published, subject to the following requirements: 52.3.1. index values are calculated and published in accordance with the detailed procedures that provide for the underlying index price collection, including pricing procedures index in such financial instruments whose market price is not available; 52.3.2. timely and in-depth access to relevant information for the index calculation, recalculation methodologies, index changes or any complications associated with timely or accurate information. 53. If the index consists of base assets that are not identifiable as law compliant investment objects, and the company uses the following index derivative financial instruments the Fund's risk of diversificēšan, and shall ensure that the composition of the index is diversified according to the level of restrictions, up to 10 percent of the index underlying asset totals, but 5 percent of transactions exceeding the value does not exceed 40 percent, then it may not distribute a separate index structure forming the base of assets the calculation of the contribution. 54. Such derivative financial instruments that do not correspond to the underlying 52. the criteria set out in paragraph 1 shall not be considered as financial index, financial derivatives, but are to be considered as a different article 65 of the law referred to in the first subparagraph of the underlying asset. 55. The index may not be considered appropriate in paragraph 52 above requirements, if at least one of the following conditions: 55.1. index and calculated upon request received from a participant of the market of one or a very limited number of market participants, and according to the requirements of market participants, and thus do not reflect its market adequate standard to which the index applies; 55.2. index reordering frequency prevents investors an opportunity to replicate the index. These are indexes that are rearranged in one or several times a day. However, the index's technical corrections (adjustments) that are made available to the public according to criteria, such as indexes to leverage funding (leveraged index) or volatility target (target volatility) indexes are not considered in the context of upgrading; 55.3. index maintainer does not provide complete information on the calculation methodology, which gives investors the opportunity to replicate the financial index. This applies to the provision of detailed information about the index base assets (the components), the calculation of the index, t.sk. leverage funding impact on the index's performance, upgrading methods, index changes, as well as information on possible operational difficulties or obstacles in connection with timely or accurate information. Within the calculation methods are omitted important characteristics or elements that investors should take into account, to be able to replicate the financial index. Investors and potential investors are provided with easy and free access to this information, for example, via the internet. Investors are not freely available information on the performance of the index; 55.4. index components and their respective share of the index are not made public or the current proportion of components is published after every index reorganize in such a way that the information covers all of the previous period and the composition of the index before the last realignment. Investors and potential investors are not free and free available this information, such as via the internet; 55.5. index component selection and upgrading methodology is not based on a predefined and objective criteria; 57.5. index maintainer receives consideration for inclusion in the index of the component; 55.7. index build methodology allows to make changes to previously published in the index value (backfilling); 55.8. index is not subject to an independent evaluation. 56. Investment in financial derivatives, which are the underlying commodity indexes, may be carried out only by respecting all the following requirements: 56.1. the composition of the index is diversified according to the requirements of paragraph 52; 56.2. the index is composed of a variety of goods. One of the subcategories of goods cannot be considered as different goods if they are obtained, for example, different regions or markets or industrial process derived from the identical material. For example, WTI crude oil (West Texas intermediate Crude Oil), Brent crude oil, gasoline or fuel oil contracts are to be considered as a single item (i.e. oil) and subcategories. Product subcategories to be regarded as different goods, if the correlation between the price is not high. Cross-correlation between two components of the index of goods that are of the same product subcategories, not high, if 75 percent of the correlation observation of correlation coefficient not exceeding 0.8. Correlation observations are made on the basis of equal weighting of the goods price yield of sub-category for each of the days of continuous observation period 250 days in the last five years. 57. the company before investing, financial derivatives whose underlying assets are financial or commodity index, document the details of carrying out the evaluation of the quality of each index, which takes into account at least the following factors: 57.1. comprehensive review of the methodology for creating the index, t.sk. the arrangements for the application of the index components, specific gravity and selection principles, based on the chosen investment strategy, and whether the financial index is considered the standard of adequate market to which it refers; 57.2. about the index, an assessment of the available information, URt.sk.: 57.2.1. or the available information clearly, a market benchmark index reflects, and detailed description of the components in the index, as well as the composition of the index or is sufficiently diversified; 57.2.2. or index is subject to independent audit and what it covers, for example, the audit shall cover the test, which determines whether the composition of the index is created for a specific methodology and accurately calculated; 57.2.3. frequency of publication index and whether or not it will affect the Fund's ability to calculate their net asset value. 58. the Fund may start investing financial derivatives, which are financial assets of the base or commodity index, after the company on the index, the Commission has submitted: 58.1. explanation in support of the compliance with this provision in the index, and a statement that the index is set to reflect the market adequate standard to which it relates; 58.2. proof that if the index strategy also provides for the management of the funds, it does not affect the index calculation methodology of impartiality; 58.3. in accordance with paragraph 57 of the evaluation of the quality of the index. 59. the fund prospectus shall clearly indicate the information on the composition of the index and on the criteria contained in the index components are selected for the strategy, as well as information on the composition of the index base rearranging existing active frequency and its impact on the cost of the strategy.
Section VIII in transferable securities and money market instruments derivative financial instruments included 60. Transferable Securities or money market instruments with the financial derivatives are financial instruments with the following criteria according to the ingredients: 60.1. these components affect the cash flows that otherwise would be required in relation to transferable securities or money market instruments that are essential, in part or in full may change according to the interest rate , the price of a financial instrument, currency rates, prices or rates, credit rating or credit index in the index, or other variable, and thus cash flow changes similar to how an individual derived financial instrument; 60.2. the economic characteristics and risks are not closely related to the economic characteristics and essential risks; 60.3. it will impact the transferable securities or money market instruments of risk and pricing. 61. A transferable security or money market instrument is considered, which includes derivative financial instrument where it contains a component which, in accordance with the agreement, it is possible to dispose independently of the transferable securities or money market instruments. This component as a separate financial instrument. 62. Backed debt securities (collatrealized debt obligation) or asset-based securities (asset backed securities) with the financial derivatives, whether or not the security is or is not actively managed, not be considered as financial instruments to the financial derivatives, except when the tool has at least one of the following factors: 62.1. debt securities provided or asset-based securities are structured so that are not limited investors ' potential losses (not limited recourses the vechicle) and investor losses can be greater than the initial investment; 62.2. structure of securities that is not sufficiently diversified. 63. If a financial instrument is structured as an alternative to the RTA derived financial instrument, then apply the RTA derived financial instrument the statutory stipulations and restrictions. Thus the Fund needs a custom hybrid (tailor-made hybrid instrument) financial instruments (for example, the same release the secured debt securities (a single debt obligation tranche collatrealized)) are to be considered as financial instruments with the derivatives. This tool offers an alternative to the RTA derived financial instruments for use with the same objective-to achieve the diversification of risks and risk management policy defined in the credit risk level of the investment portfolio of the Fund. 64. Structured financial instruments, valued as tools to the financial derivatives, are, for example: 64.1. credit risk associated with debt securities (credit linked notes); 64.2. structured financial instruments that yield is associated with a particular bond index yield; 64.3. structured financial instruments that yield is associated with a particular basket of shares that are or are not actively managed, profitable; 64.4. structured financial instruments with a face value of guaranteed profitability which is associated with a particular basket of shares that are or are not actively managed, profitable; 64.5. convertible bonds (convertible bond); 64.6. exchangeable bonds (exchangeabl bond). 65. the Fund investments in structured financial instruments with the financial derivatives, comply with the following conditions: 65.1. the company shall ensure that the law and the fund prospectus defined investment (by type) limit is complied with, taking into account also contained derivatives; 65.2. taking into account that the transferable securities or money market instruments contained in derivative financial instruments included in the calculation, the overall risk of the firm: 65.2.1. uses the risk management policy, which gives it the opportunity at any time to monitor and identify with relevant financial derivatives positions the associated risks and the impact of derivatives on the investment portfolio of the Fund's overall risk exposure; 65.2.2. ensure that the overall risk resulting from transactions in financial derivatives and calculated in accordance with the financial and capital market Commission 11.11.2011. regulatory arrangements no 242 "and the Fund's overall risk exposure to a counterparty of the size calculation regulations regulations", shall not exceed the net asset value of the Fund; 65.2.3. ensure that the size of the transactions with a single issuer or counterparty, taking into account in derivatives, calculated in accordance with the financial and capital market Commission 11.11.2011. regulatory arrangements no 242 "and the Fund's overall risk exposure to a counterparty of the size calculation regulations regulations", shall not exceed the law laid down in the prospectus and the Fund's investment restrictions. 66. the company is obliged to check whether the transactions in transferable securities or money market instruments contained in financial derivatives match 65 conditions listed in. This way, the frequency of checks and the amount is provided for risk management procedures, depending on the financial derivatives and their impact on the investment risk of the Fund, taking into account the fund prospectus defined investment policy and risk profile of the Fund. 67. The company shall ensure that the Fund meets the risk management transactions and complexity. If the company finds that the transaction in securities or money market instruments contained in financial derivatives impact on fund investment risk is not significant, according to adjust the risk controls, such as the question of investment restrictions, taking into account the conditions referred to in paragraph 65.
Title IX Fund comparable to the total investment company 68. In assessing whether the investment fund comparable to the total investment that is not registered in a Member State (hereinafter – the company) investment certificates (shares) with regard to the legal framework for the enterprise governmental supervisory equivalence and the financial and capital market Commission in cooperation with the national supervisory bodies comply with the requirements of the law, the following shall be taken into account: 68.1. the financial and capital market Commission has concluded bilateral or multilateral information exchange agreement (Memorandum of Understanding) with the management authority of the State concerned; 68.2. the company's investment management company, the rules of operation and the custodian (holder of the funds) is approved by the supervisory authority, which monitors the activities of this company; 68.3. company is established in the Organization for economic cooperation and development in a Member State. 69. In assessing whether the company's investor protection can be considered analogous to the legal requirements, the following shall be taken into account: 69.1. investment management operating rules for the independent management of the company in the interest of investors; EB 69.2. an independent person whose duties and responsibilities in relation to enterprise storage and transaction monitoring is comparable to a custodian duties and responsibilities; 69.3. There are certain requirements of the company's units (parts) for the determination of price and sharing, as well as for the preparation of the report; 69.4. There are certain requirements of the investment company certificate (part), which is analogous to the atpakaļpirkšan Foundation; 69.5. There are restrictions relating to transactions with persons affiliated with the company; 72.2. supported the separation of the company's assets or resources managers the assets of the holder.
Title x Funds, which replicates the equity or debt securities index 70. composition of the equity or debt securities index replication means the composition of the Fund's investment portfolio building according to the index of the underlying composition and structure, t.sk. using derivative financial instruments or to the transferable securities and money market instruments affiliated transactions that enable efficient management of portfolios of investments of the Fund.
71. the equity or debt securities index which is made to replicate the composition of the Fund's legal requirements according to the index, if all the following conditions are met: 71.1. the composition of the index is sufficiently diversified, i.e. to replicate the index composition, the contribution of each individual index contained in the issuer's securities does not exceed 20 percent of the Fund's assets, but in cases where the Fund's documents submitted for registration are provided additional information in support of specific market conditions the proportion of one investment index contained in the issuer's securities are permitted to increase to 35 percent. Also include this information in the prospectus of the Fund; 71.2. index creator uses generally accepted index methodology for creating that don't allow you to exclude from the index of the relevant market to which it refers, a major issuer; 71.3. the index is published, respectively, under the following conditions: 71.3.1. investors are free, for example, via the internet, available in all the relevant information about the index; 71.3.2. the creator of the index is independent of the company, which manages the Fund that replicates an index. It is acceptable that the creator of the index and the companies can be in one of the company in the group, if the effective prevention of conflicts of interest, described in the Fund's investment risk management policy.
Section XI Fund that follows the financial index 72. Foundation who follows financial index (Index-tracking UCITS) Fund, which is the strategy to follow the (track) of one or more financial index performance using synthetic or natural replication. 73. the Fund, which follows the financial index, the prospectus shall contain the following information: 73.1. financial index or index description, t.sk. information on the existing base of underlying assets, the internet site that is made public the exact composition of the financial index; 73.2. on the way the Fund follows the performance of a financial index, such as whether the Fund completely replicating the composition of financial indices – investment in index composition-based assets – or use the random input model (sample based physical replication model) – selectively investing in financial instruments, other than the composition of the underlying index, but that mutual correlation is high, or use synthetic replication. Provides a description of the selected type (explanation) and the impact on the performance of the Fund, taking into account the risks facing the financial composition of the underlying index, and counterparty risk; 73.3. the expected level of tracking deviations (level of tracking error) under normal market conditions. Tracking the deviation is the difference, between the Fund, the financial index, yield volatility and index or the index yield volatility; 45.6. the factors that are most likely to influence the Fund's ability to accurately track the performance of a financial index, such as transaction costs, small illiquid index base assets, dividend reinvestment-. 74. This rule 73.2. information referred to in paragraph 1 shall also include the basic information provided to investors.
Title XII Foundation with leverage funding that follows the financial index 75. Foundation with leverage funding that follows the financial index (index-tracking the leveraged UCITS) Fund, which is a strategy to track the financial performance of the index, using the leverage of funding (leveraged exposure), or the performance of a financial index, which uses leverage funding (leveraged index). 76. the Fund to leverage funding, who follows the financial index, the prospectus shall contain the following information: 76.1. leverage funding policy description and how it is achieved, or leverage funding is included in the index level or in the index of the associated risks, leverage the cost of funding and with the use of this policy-related risks; 76.2. the description of a possible reverse (reverse) the leverage effect of funding on performance when leverage funding fee is higher than the resulting return on investment financed; 76.3. explanation why the Fund's performance over the medium to long term may differ significantly from the multiply code performance. 77. The information given in a prospectus shall contain in summary form the key information provided for investors in the well.
Title XIII regulated market traded fund. the Fund's name used in 78 designation ' ' regulated market traded fund ' ' or ' ' the designation of UCITS ETFS ' ' indicates that it meets the requirements referred to in paragraph 79. This sign is used in the name of the Fund, the Fund's Management Charter, prospectus, investors provided background information and advertising materials. Legend ' ' ' ' the same UCITS ETFS used in all Member States of the European Union. 79. the Fund traded on a regulated market (hereinafter ETF) Fund, which is at least one class of units during the trading day is traded on at least one regulated market or multilateral trading system with at least one market support, which ensures that the Fund's investment certificate price not significantly different from its net asset value and the indicative net asset value, if any, is calculated. 80. The indicative net asset value are the ETFS net asset value, which is determined during a trading day, on the basis of updated information. The indicative net asset value is the price at which the investor in the secondary market for buying and selling the Fund investment certificates. 81. the Fund name, fund management regulations, prospectus, provided basic information to investors or promotional materials may not be used ' ' ' ' legend of ETF or stock exchange legend ' '/traded on a regulated market, if the Fund ' ' Fund does not meet the requirements referred to in paragraph 79. 82. the ETF prospectus to investors provided the basic information and advertising materials contain at least the following: 82.1. explain what is portfolio transparency (transparensy) policy, and indicates which are made public information about the investment portfolio; 82.2. If is calculated indicative net asset value, provide an explanation, as it is calculated and how often, as well as specify which it is published; 82.3. actively managed ETFS, i.e. such that the Administration has the right to change the structure of the investment portfolio in accordance with the investment objectives and policies, unlike the ETF that follows the financial index and which does not have such right, give a clear indication that the investment portfolio of the Fund is actively managed and the implementation of a specific investment policy, also in cases where the investment objective is to exceed the performance of a financial index. 83. the prospectus, provided basic information for investors and advertising materials for the ETF, which units are traded on the secondary market – they are not reissued or atpakaļpirkt, contain the following warning: "the secondary market bought the ETF units are typically not possible directly atpakaļpārd ETFs. Investors buy and sell units in the secondary market through an intermediary, such as a stock broker, and may apply for this service. In addition, buying investment certificates, investors may pay a higher amount than the current net asset value and selling these units may receive less than current net asset value. " 84. If the ETF units on a regulated market prices vary considerably from the ETFS net asset value, investors who have purchased units in the secondary market, has the right to its atpakaļpārd the right ETFs. This applies to situations when the market is in disorder, such as market support is unable to perform his duties. In such situations, the company provides information on the regulated market, indicating that the ETF provides direct investment certificate atpakaļpirkšan. ETF 85. the ETF prospectus describes the situation referred to in paragraph 84, when investors have the right to purchase in the secondary market of atpakaļpārd units the right ETF as well, as investors act in such situations and the possible costs.
Title XIV transitional provisions 86. If this provision into force are hereby concluded on behalf of the Fund transactions in financial derivatives, which are financial assets of the base or commodity index, the company shall ensure compliance with the requirements of this regulation not later than 12 months after the date of entry into force of the provisions. 87. Until these regulations into force on behalf of the Fund received security compliance with these provisions the company not later than 12 months after the date of entry into force of the provisions. 88. From the date of entry into force of the provisions of the security of money received in the further-the company comply with the requirements of this regulation. 89. the Fund to which these provisions at the date of entry into force of the agreement on the distribution of income in accordance with the provisions of paragraph 35.3, ensure compliance with the requirements of this regulation not later than 12 months after the date of entry into force of the provisions. 90. the Fund's compliance with this provision of the name requirements the company provides with the next amendment of the Fund's registration documents (prospectus, the Fund's Management Charter, the basic information for the investor), but not later than 12 months after the date of entry into force of the provisions. 91. the requirements relating to registration of the Foundation documents for compliance with the requirements of these provisions, the company shall ensure compliance with the subsequent amendments thereto, but not later than 12 months after the date of entry into force of the provisions.
Section XV final provision 92. This provision into force the Commission shall lapse 18.07.2008. Regulation No. 104 "the legislative provisions on the criteria of the open fund investment object for investment management company compliance with legal requirements".
Informative reference to directives of the European Union and the European Securities and markets authority guidelines rules contain provisions resulting from: 1.20.12.1985) Council directives 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS); 2. the Commission's 19.03.2007) 2007/16/EC implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), the clarification of certain definitions; 3) the Committee of European securities regulators guidelines (CESR/07-044) relating to undertakings for collective investment in transferable securities eligible for investment assets; 4) the Committee of European securities regulators guidelines (CESR/07-434) relating to undertakings for collective investment in transferable securities eligible for investment assets. High risk index funds as financial index classification; 5) Commission directive 2010/01.07.2010.43/EU of the European Parliament and of the Council directive 2009/65/EC in respect of organisational requirements, conflicts of interest, professional ethics, risk management, and between the management company and the depositary of the agreement to be concluded; 6) the European Securities and markets authority guidelines (am/2012/832) and the competent authorities of the UCITS investment management firms for ETFS and other UCITS-related matters. Financial and capital market Commission Vice Chairman p. Bird