Financial and capital market Commission, the provisions of regulations no 246 in Riga on 11 November 2011 (financial and capital market Commission Council meeting No. 43 8. p.)
 Investment management company internal control system rules, regulations Issued under the investment management company of article 13 of the law the fifteenth part 1. "investment management company internal control system regulations" (hereinafter-the rules) determines the requirements for the internal control system and are binding on the Republic of Latvia licensed investment management companies (hereinafter-the company) providing management services. Authorised in another Member State of the investment management company branch in Latvia comply with the requirements of this regulation, which provides investment management company, article 77 of the law, part of the ninth compliance and enforcement.
2. the terms used in the rules: 2.1.  compliance with laws, rules and standards (compliance laws, rules and standards)-firm regulatory laws and other legislation, the activities associated with the self-regulatory bodies set standards of professional conduct and code of ethics, and other activities associated with best practice standards;
2.2. Management Services-Investment Fund (open or closed), the investment plan or pension plan;
2.3. counterparty risk – risk management services for recipients to suffer losses in the event that a counterparty will stop fulfilling its obligations before the settlement of the cash flow the last payment;
2.4. liquidity risk – the risk that recipients of government investment portfolio of financial instruments will not be possible within the desirable without substantial losses to sell, to eliminate or to carry out a transaction that results in the closed position, and the risk that the open investment fund will thus be limited to units atpakaļpirkšan performance requirements;
2.5. market risk – risk management services recipient suffer losses in an investment portfolio that the revaluation of financial instruments linked with changes in the market value of factors such as exchange rates, interest rates, equity and commodity prices or the creditworthiness of the issuer;
2.6. the operational risk – risk management services for recipients to suffer losses, inadequate or incomplete internal process developments, people and systems or external conditions effects, which also include legal and documentary risks, as well as the risk of losses arising from management services carried out in the name of trade, settlement and valuation procedures;
2.7. operating compliance risk – the risk that the public may experience loss, or it may be legal obligations imposed on, or it may be subject to sanctions or may degrade its reputation because the company does not comply with or violate the compliance rules, regulations and standards;
2.8. the use of other terms comply with the investment management company law, financial and capital market Commission (hereinafter the Commission) regulatory provisions No 02.05.2007.60 "minimum capital requirements rules ' and the Commission's regulatory rules 11.11.2011. No 242" to the overall risk of the Fund and the amount of exposures with the counterparties calculation rules "for the use of the term.
Title I General issues 3. company's internal control system and the effective functioning of the Management Board of the public response and the Council.
4. the Management Board of the Company and the Council shall ensure that: 4.1 the internal control system in the society is organised so that the public and Government services, the recipient of the assets secured against loss and unauthorized use of the reign and;
4.2. the company's operational risks are continuously identified and managed;
4.3. the transactions are carried out pursuant to community developed operating procedures and policies;
4.4. the company operates carefully and efficiently, respecting the activities of regulatory legislation.
5. the company's internal control system, in view of its size, the amount of the transactions, their diversity and complexity, the magnitude of the risk associated with each area of activity, the degree of centralization of management, information technology security and other factors that are relevant to the specific activities of the company's objectives.
6. Internal control the key elements of the system are: 6.1 operational organisation of society;
6.2. all the activities of the relevant risk identification and management, t.sk. measurement, evaluation, monitoring and reporting of risks;
6.3. the internal control system of regular review, evaluation and improvement of efficiency according to the changes in society and society in affecting external circumstances, as well as any system failures detected timely.
Title II Community action organization 7. The company shall ensure the proper functioning of the organisation, URt.sk.: 7.1. establish the company's size and operational risks the appropriate and transparent organisational structure;
7.2. ensure compliance with the company's personnel;
7.3. ensure adequate public accounting system;
7.4. develop a management information system;
7.5. developing service delegation policy and procedure, as well as to take the necessary measures to ensure the respect of such documents;
7.6. procedure and shall take the necessary measures for the management of conflicts of interest;
7.7. Design procedure and shall take the necessary measures for the protection of public assets and the protection of information systems.
Part 1. Organizational structure of the company developed 8 organizational structure description, stating: 8.1, a Council of public officials, heads of the departments and organs (functions) of the duties, powers and responsibilities of business and control, t.sk. prepare job descriptions (service instructions) responsible officers;
8.2. unit responsible for risk control function, control of the conformity of the activities (compliance) function and the internal audit function (all together, the internal control functions) of the society, subject to this provision the requirements of title VI;
8.3. public reporting and the procedure for the exchange of information in society, as well as with third parties, t.sk. indicate what information that you and when is obliged to provide and receive and what information is confidential and undisclosed.
Part 2. Staff compliance with 9. The company shall ensure that its employees are aware of their responsibilities, knowledge of information related to the execution of their duties, and they are appropriate for the performance of the duties of a position's qualifications and sufficient experience. To ensure compliance of employees, the company: 9.1. develop and document the personnel policies and procedures that govern the Department Manager and the Administrative Services Manager selection procedures, fees, monitoring and succession planning, as well as the requirements for various posts in the necessary skills, potential employee conformity assessment criteria and procedures;
9.2. establish and document the employee's professional training program, the purpose of which is to prepare employees for the position's duties and continuously improve employee knowledge, as well as procedures for information about changes to policies, procedures, compliance with the laws, regulations and standards related to the performance of the duties of the position.
10. The company shall ensure that the person with the company asked for more functions and does not hinder this person can interfere with any function to perform properly, honestly and professionally.
Part 3. 11. Public accounting organisation represents the accountancy system, accountancy organizations subject to the regulatory requirements of the regulations, developing and documenting the accounting policy and accounting, control, evaluation and reporting procedures.
12. If the company shall transfer the Fund's investment portfolio management to another company, it shall take measures to ensure that in case of need it is available in the business justification documents for the last 10 years transactions.
Part 4. Management information system company developing 13 management information system, which enables you to understand and appreciate the timely public and Government services, the recipient of the financial situation, effective decision-making and to assess their effects, as well as timely disclosure control procedures. Public officials, Council and heads of departments should have timely access to accurate and relevant information that is required for the performance of the duties of the positions and decisions.
14. the management information system is at least 14.1. information about the company: the management of the recipient and current financial position, the results of analysis in comparison with the previous periods and figures in the action plan;
14.2. the company and the recipient of government assets, liabilities and off-balance-sheet items in the analysis, showing how they are evaluated;

14.3. the public and Government services, the recipient of the income and expense analysis, t.sk. the dependence of various assets, liabilities and off-balance sheet items;
14.4. for information on the administration of the public service, the recipient of the actual size of quantitative risk comparison with restrictions and limits;
14.5. information about the company's policies and procedures adopted by the failure and analysis.
15. Management information system provides: 15.1. timely provision of information to external users (annual report, report to the Commission, the Bank of Latvia, etc.) according to the legislative requirements;
15.2. the timely and proper registration of the information, to ensure that 16 and 17 above requirements.
16. The company shall ensure that each recipient with the management features of transaction is immediately registered. The company, recording these transactions, ensure that the information on transactions is sufficient to make it possible to reconstruct these transactions and related transaction orders, t.sk. specify the following information: 16.1. managing services and persons acting on government services, on behalf of the beneficiary identification data (name and surname, or name);
16.2. the transaction related financial instrument identification data;
16.3. the number of financial instruments;
16.4. the order of transactions or the nature of the transaction;
16.5. transaction price;
16.6. the exact date and time of the transaction, the order is released, as well as the person this transaction the order was released, identification data;
10.4. the exact date and time when the decision was taken for the transaction, and the transaction was made;
16.8. the person who has fulfilled the order or transaction carried out the transaction, identification data;
10.5. where the order of the transaction was canceled, cancellation of the order of the transaction;
16.10. the counterparty and transaction execution venues (regulated market, MTF, systematic internaliser system, market maintainers or other liquidity provider) identification data.
17. The company shall ensure that incoming open investment fund investment certificates purchase and atpakaļpirkšan application is collected and immediately registered to indicate the following information about them: 17.1. an open investment fund name;
17.2. the person who submitted the application, execution or identification data;
17.3. the person who receives the application, identification data;
17.4. date and time of the application;
17.5. payment terms and features;
10.9. the types of purchase, atpakaļpirkšan or take-back;
17.7. the due date and time;
11.1. atpakaļpirkt atpakaļpieņemt sold or the number of units;
11.1. each investment certificate sales, atpakaļpirkšan or take-back price;
17.10. the total units of purchase, atpakaļpirkšan or take-back value;
17.11. the gross value, including the release of the Commission's money, or net worth, net of commissions of atpakaļpirkšan.
18. the company, storing documents, ensure that: 18.1. the Commission may consult the data content, and the ability to reconstruct each of the relevant stage of processing all transactions;
18.2. to find out all the possible corrections or additions, as well as the data content before corrections or additions;
18.3. it is not possible to manipulate the data or change it.
Part 5. Delegation arrangements 19. Delegating any of its functions, the company shall ensure that: 19.1 is designed and documented appropriately delegated services related to risk assessment and management procedures;
19.2. the effective monitoring of the performance of the service delegated and society has sufficient resources for the provision of that surveillance, t.sk. employees whose duties include the supervision referred to, is sufficient education and professional experience.
20. the Delegation of the risk management function, the company shall ensure that: 20.1. responsibility for the risk management process suitability and effectiveness remain public;
20.2. the delegation of the Commission of the results is not denied or restricted statutory supervisory functions.
Part 6. Assets and information systems protection 21. the company shall establish and document the business continuity policies and procedures of protection: 21.1. prevents unauthorized third persons directly and indirectly (through the document) access to public services and government assets, accounting, electronic communications systems and other data;
21.2. provide information system secure and stable functioning of information (t.sk. information in emergency situations), information integrity and confidentiality, as well as information processing, storage and transmission of safety;
21.3. provide management services to provide continuous and systematic.
Title III public and Government services, the recipient of the operational risk identification and management part 1. Significant operational risk management policy 22. Society create, document and follow the relevant operational risk management policy, which is identified in the public and civil services for the operation of existing or potential risks.
23. with regard to open investment funds corporations substantial operational risk management policy includes at least the following elements: 23.1. the procedure required for the company to assess each Fund's market risk, liquidity risk, counterparty risk, concentration risk, operational risk and other risks which may be relevant to the Fund, as well as about the risk concentration and mutual interactions;
23.2. the methods, means and measures to ensure this provision 26.-30. the risks referred to in point measurement and management requirements, as well as the investment management company, article 66 of the law on the seventh, 7.1 and 7.2 and the regulations of the Commission 11.11.2011. Regulation No 242 "and the Fund's overall risk exposure to a counterparty of the size calculation regulations rules" defined for the calculation of the overall risk of a claim (hereinafter – risk measuring , management and calculation of the overall risk requirements);
23.3. risk management associated with the Division of responsibilities in society;
23.4. information on risk control functions in society ensuring responsible persons shall be submitted to the Executive Board and the Council of the public, content, frequency and provide reporting procedures.
24. an important activity of the company's risk management policy and implement risk control function, in view of the public and Government services, the recipient of the nature, scale and complexity.
25. the company shall assess, monitor and regularly review: 25.1. significant operational risk management policy, as well as risk management and measurement, calculate the total risk requirements of those measures, procedures and methods of managing the effectiveness and suitability of the operation of a recipient of services;
25.2. the extent of compliance with the relevant operational risk management policy and risk measurement, management and overall risk calculation requirements these activities, procedures and methods;
25.3. risk management process the failures and failures of the appropriateness of the measures taken and their effectiveness.
Part 2. Risk measurement and management 26. The company shall establish and implement its action the nature of appropriate measures, procedures and methods to: 26.1. might be measured continuously and manage regulatory action right of recipients of services, as well as the possible risks;
26.2. ensure an open investment fund to the overall risk that mentioned investment management company, article 66 of the law on the seventh and part, and about 7.1 exposures to counterparties referred to in the investment management company, article 66 of the law of the eighth part, the calculation of the amount in accordance with the Commission's regulatory rules, 11.11.2011. No 242 "and the Fund's overall risk exposure to a counterparty of the size calculation rules" requirements of investment management company the statutory limit.
27. Creating and introducing this provision in paragraph 26 the measures, procedures and methods, the company takes into account the same society and the regulatory activities of the recipient, the nature, scale, complexity and risk profile.
28. in order to ensure that the provisions referred to in paragraph 26 of the requirements, each open investment fund: 28.1. define and document the risk measuring such measures, procedures and methods that provide the appropriate level of risk and its impact on the Fund's overall risk profile for accurate measurement, based upon available, safe and reliable data;
28.2. evaluate the need to regularly perform the checks retroactive (back testing) to assess how reliable is the derived risk assessment event results, t.sk. forecasts and estimates obtained using internal models;

28.3. evaluate the need to regularly perform stress testing and scenario analysis, which would identify the possible events or potential changes in market conditions that can have a negative impact on the value of the Fund;
28.4. establish, implement, document and follow adequate risk control procedures, determining the maximum permitted levels of internal risk limits the extent of the risks inherent to the Foundation, which, according to the Fund's risk profile is essential operations risk management policy the essential;
28.5. ensure that, in practice, compliance with established internal Fund to the maximum amount of risk limits;
28.6. develop, document and implement the risk control procedures to cases actually occur or are expected to fund the stated maximum amount limit exceeded the risks, ensure timely corrective measures carried out in the interest of investors in the Fund.
29. the company implemented a liquidity risk control process to each open in managing investment funds to ensure the units atpakaļpirkšan requirements. The company evaluated the need of stress testing in order to assess liquidity risk in emergency situations.
30. the company provides each open investment fund prospectus and regulatory rules laid down in the licence buy-back of investment policy of the relevant investment liquidity conditions.
31. If the company plans to start investing investment objects with significantly different risk profile or significantly change the structure of the investment portfolio, then implementing significant operational risk management policy, the company before the investment according to the specificities of the planned investment in formula projections and analysis about the impact of the investment management service of the beneficiary's investment portfolio structure, liquidity, risk and yield profile. Analysis is based only on reliable and timely information, and it covers not only quantitative, but also qualitative indicators.
Section IV of the Council of the public functions of the internal control system in the field of 32. Council monitors the public, as the company's Executive Board supports creation of internal control system and effective functioning. Internal control system in the field of public Council: 32.1. act honestly, fairly, professionally and carefully under the administration of a recipient of services;
32.2. oversees the Division of responsibilities between the Council members and public officials;
32.3. determines the obligations of the members of the Management Board remuneration and performance evaluation of the Board;
32.4. the activities approved by the related policy and monitor it and related procedures and measures;
32.5. the monitoring agenda of personal transactions or transactions with financial instruments on public observance of the same invoice and confirms the order in which the public can exercise the voting rights arising from the management of the recipient of the investment portfolio to existing financial instruments;
32.6. monitor, or risk control function, control of the conformity of the activities of the internal audit function and the function is well-defined, or these features is a good place in the organisational structure of the company and a role in the management of the public process, or they are provided with qualified staff and work effectively;
32.7. monitors the risk (t.sk. compliance risk) the identification, measurement, management and reporting procedures;
20.4. monitor the effective functioning of the management information system;
32.9. oversee the review and provision of information to the Commission, the other institutions, recipients and investors of the Fund;
32.10. monitors the internal control system periodically according to the change in the development of the firm and the firm in affecting external circumstances;
32.11. examine the internal control function of reporting and internal audit, as well as the external auditor of the Commission and the other institutions of the public opinions and suggestions to improve the operation and control of the open gap.
Section v of the public function of the Board's internal control system in the field of 33. Public Management Board is responsible for the comprehensive internal control system, its implementation, management and development. Internal control system in the field of public management board: 33.1. determines the organisational structure of the company;
33.2. ensure the implementation of policies established by the Council and approved by the appropriate procedures;
33.3. the approved investment fund and investment plan risk profile;
20.8. ensure personal transactions or transactions with financial instruments on the company's own billing procedures, as well as the order of the company may exercise the voting rights arising from the management of the recipient of the investment portfolio, financial instruments in compliance with the community;
33.5. ensure the management of the recipient, the prospectus regulation or plan appropriate investment policy;
20.9. oversees the approval of investment strategies in each trust fund and the investment plan;
20.9. ensure risk identification, measurement, management and reporting of the public concerned;
21.0. ensure continuous and efficient operation of the compliance function in society (also in cases where a function is delegated), as well as, in cooperation with the control of the conformity of the activities of the Department, made this provision in paragraph 47 above.
21.1. ensure and regularly verify that each recipient of government investment policies, investment strategies and investment limits set are implemented in an appropriate and effective manner and are complied with (also in cases where a function is delegated);
33.10. approve and periodically review business procedures for deciding on the investment management service for each recipient in order to ensure that they are appropriate to the stated investment strategy;
33.11. regularly reviews the company's significant operational risk management policy and the provisions referred to in paragraph 23 the measures, procedures and methods, t.sk. investment restrictions on, and make recommendations to the Council on the necessary changes;
33.12. the introduction and administration of the management information system covering all company's activities;
33.13. provide public services and government assets and the protection of information systems and implement Council down the business continuity policy;
33.14. ensure measures are taken to prevent internal control system deficiencies, which discovered the internal audit, external auditors, the Commission or the other institutions;
33.15. ensure that the departments responsible are regularly received reports, t.sk. the report, which included information about investment strategy, and this rule 20.8.-20.9. measures referred to in paragraph 1, the policy and procedure implementation;
33.16. at least once a year the Council of the society provides an overview of the internal control system, the evaluation of its effectiveness and, if necessary, to propose changes to improve its efficiency, taking into account the change in the operation of the company and its activities in affecting external circumstances.
Section VI internal control functions 34. To promote effective and comprehensive internal control systems in all areas of society, according to the specifics of its operations provides at least the following internal control functions in society: 34.1. risk control functions;
21.3. the compliance control function;
21.3. the internal audit function.
35. The company shall ensure that the internal control function is independent of the company that they control (hereinafter referred to as the controllable actions). Internal control function is considered independent of the controlled transactions, subject to the following conditions: 21.8. employees, performing internal control functions, responsibilities does not include responsibilities related to controlled activities;
35.2. internal control functions are separated from the controlled organisational activities and units that carry out internal control functions, the driver is institutional subject person, which is not at the unit that carried out the controlled activity;
35.3. departments which carry out internal control functions, shall report to the Management Board of the company (or the Council);
35.4. employees, performing internal control functions, the remuneration shall not depend on the results of controlled activities.
36. The company shall ensure that the internal control functions are institutional separate from one another.
37. with regard to the risk control and compliance control function is a derogation from this provision, 35.3, 35.4 35.2..., and 36 the principles listed in paragraph, where the company develops and implements control procedures that ensure the existing or potential conflict of interest situation, if it complies with the company's size and the nature of the activities and results of these derogations internal control functions do not lose their effectiveness.
38. the internal control functions To work effectively, the company:

38.1. clearly define and document the business unit performing internal control functions, powers;
38.2. the distinction between the internal control functions of the daily transactions;
23.8. ensure the units carrying out internal control functions, free access to all documents, information, and employees;
23.9. the departments carrying out internal control functions, the power to control their activities, which are used to ensure the delegation;
38.5. ensure the units carrying out internal control functions, effective functions sufficient resources, t.sk. the appropriate number of staff with adequate training and professional experience to have a reason to believe that they are capable of carrying out their duties;
24.0. departments which provide internal control functions, direct contacts with the society's Board and Council.
Part 1. Risk control function 39. Risk control functions primarily for the risk management system, t.sk. appropriate risk management policy and procedures development and implementation.
40. the company's risk control function is organized according to the size and nature of its activities, putting the risk control function for one or more organizational units (hereinafter individually or all together – risk control unit) and ensuring that the risk-control unit responsibilities and role is documented in society and is designated for risk control.
41. the Risk-Control Department responsibilities include: 41.1. the company and management of the services essential to the operation of the identification of the risks and the risk management policy and procedures development and implementation;
41.2. the investment restrictions, t.sk. Investment management company the statutory investment restrictions for open investment fund's overall risk and the extent of exposure to counterparties, compliance control;
41.3. the public consultation of the Council and of the Executive Board on matters related to the management of each fund or an investment plan risk profile;
25.7. when required, financial derivatives valuation procedure and process review and approval;
25.8. Commission regulations 11.11.2011. Regulation No 242 "and the Fund's overall risk exposure to a counterparty of the size calculation rules" define the exercise of responsibilities with respect to the value at risk method;
25.8. the risk management policy and procedures review and development of a regular basis to ensure their relevance and consistency with the changes in society and society in affecting external circumstances.
42. Risk Control Unit regularly provide to the Executive Board and the Council of the public reports that include information on public and Government services, the recipient of the transaction, the inherent risks that the Board and the Council of the society allows you to constantly assess the risks affecting the company's ability to achieve its goals, and, if necessary, to decide on appropriate corrective measures are taken.
43. in addition to the provisions laid down in paragraph 42 of the risk control Department provide regular public reports to the Council, which shall include information on: 43.1. each fund or investment plan risk level of conformity with the particular risk profile;
43.2. each recipient of government compliance with the investment restrictions laid down;
43.3. the risk management policy and procedures compliance and effectiveness (t.sk. of it, or if necessary, is made in accordance with the corrective measures).
44. in addition to the provisions laid down in paragraph 42 of the risk control Department provide regular public reports to the Executive Board, which shall include information on each of the recipient's current risk level and on detected or expected the recipient of government investment restrictions specified offences, enabling the company to the Board in a timely manner necessary to make decisions about the appropriate corrective measures.
Part 2. Compliance control function 45. control of the conformity of the activities of the Mission's operational function the compliance risk identification, assessment and management.
46. the activities of the company with the compliance control function is organized according to the size and nature of its activities, putting control of the conformity of the activities function for one or more organizational units (hereinafter individually or all together-the transaction compliance control unit), ensuring that the control of the conformity of the activities of the responsibilities and role of the unit is documented and in society is designated as responsible for the operational control of compliance officers.
47. the company, in cooperation with the Board of control of the conformity of the activities of the Department: 29.3. at least once a year and evaluate the most important identified compliance deficiencies and develop plans to avoid them;
47.2. at least once a year a statement of the public Council on the compliance risks, including information to enable the Council to assess the performance of the company's compliance risk management effectiveness;
47.3. immediately notify the public Council on significant operational compliance failures that may occur to the public loss, or it may be legal obligations imposed on, or it may be subject to sanctions or may degrade its reputation.
48. the control of the conformity of the duties of the Department include: 29.9. operating compliance risk identification, evaluation, documentation and t.sk. provided that before a new operation (t.sk. before new products, services, procedures in place before the new administration the recipient or partner approval) is identified with the transaction related activities compliance risks and assess whether, by doing this, the company will observe compliance with laws, regulations and standards;
48.2. working with the compliance risk management policy and procedure development, documentation and implementation, t.sk. the development of appropriate procedures to ensure that compliance with the laws, regulations and standards are observed by all public employees;
48.3. the compliance risk management policies and procedures;
30.1. the compliance risk management policies and procedures for the regular review and improvement to ensure the topicality and relevance of changes in society and society in affecting external circumstances;
30.1. the company's Board and Council information on the activities of the compliance risk of compliance failures, as desired and the measures taken to remedy these shortcomings, compliance with laws, regulations, and standards and changes;
30.2. the conformity of possible changes in laws, regulations and standards in effect on the valuation of the activities;
30.3. providing advice and support to public employees to ensure that they do their job duties in compliance with the laws, regulations and standards.
49. the activities of the compliance control unit operating under the Council of the society or Board approved a work plan that reflects current period operations.
Part 3. Internal audit function the internal audit function 50 's mission is to make the internal control system of independent monitoring, as well as the adequacy and effectiveness of the assessment to help society Board, Council, and department managers to carry out its functions more effectively.
51. The Department carrying out the internal audit function (hereinafter internal audit) responsibilities include: 51.1. the effectiveness of the activities and results of the evaluation;
51.2. the activities of the compliance strategy, plans, policies and procedures;
51.3. risk control functions and operational control of the conformity evaluation of the effectiveness of the function;
51.4. the accounting system;
51.5. evaluation of information systems;
51.6. internal control operating procedures;
32.1. the financial reliability and completeness of the information, as well as of the means test, by which this information is identified, measured, classified and provided;
32.2. the special inspections and investigations.
52. The internal audit manager's appointment and removal from Office of the order ensures that the internal audit manager in decision-making and action is independent of public officials and is clearly the responsibilities, authority and reporting procedures.
53. the internal audit activities carried out in accordance with the action plan laid down by the Council, which represents: 53.1. during the period under scope, inspection checks the regularity and necessary resources;
53.2. risk identification and assessment methods the test areas of activity, as well as risk control procedures evaluation criteria;
53.3. test results documentation requirements;
53.4. the order in which results are to be given to the Management Board and the Council of the society, and the implementation of the recommendations of the inspection procedure.

54. the internal audit shall prepare a report to the Board of the society and the Council on the results of each inspection reveals facts and internal control system deficiencies, policy and procedure violations, does not sufficiently identify or manage risks and provide suggestions for correcting the deficiencies detected. Internal audit provides the results of each inspection carried out in fact, opinion and recommendations prepared consultation appropriate management level, as well as following the recommendation of the internal audit. Internal audit, at least once a year, prepare a report on the checks carried out and the main identified shortcomings, expressing views on the effectiveness of the internal control system.
Transitional provision the company shall ensure that the requirements of this regulation in respect of the administration of the existing closed investment funds, the State funded pension scheme investment plans and private pension funds for pension plans shall be implemented not later than four months after the entry into force of these regulations.
Informative reference to European Union directives and other international documents the rules included provisions resulting 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 Commission directive 2010/01.07.2010.43/EU of the European Parliament and of the Council directive 2009/65/EC with regard to the organisational requirements, conflicts of interest, professional ethics, risk management, and between the management company and the depositary of the agreement to be concluded;
3) the Committee of European securities regulators guidelines (CESR/09-178) on the risk management of the UCITS.
Financial and capital market Commission Deputy Chairman j. Brazovsk a