Financial and capital market Commission, the provisions of regulations No 40, Riga, 2 March 2016 (financial and capital market Commission Council meeting Protocol No 10 2. p.)
The legislative provisions concerning the materiality of information, protected and sensitive information and for disclosure Issued pursuant to the recurrence of the credit institutions act, the third subparagraph of article 50 and the financial instruments market law 123.5 the second paragraph of article i. General questions 1. "the legislative provisions on the materiality of the information, protected and sensitive information and on the periodicity of the disclosure of the information" (hereinafter-the rules) determine the arrangements applicable to credit institutions and investment firms which are the institutions of the European Parliament and of the Council of 26 June 2013 Regulation (EU) no 575/2013 for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (hereinafter the regulation) article 4, paragraph 3 of the understanding (hereinafter the authority) in accordance with the level of application of the public disclosure of information comply with requirements based on the institution's individual or consolidated financial statements determining the materiality of information, protected and confidential information and evaluating the disclosure recurrence. The rules applicable to credit institutions disclosure in public reports the quarterly information requirements evaluation, except the information specified as mandatory disclosures in accordance with the financial and capital market Commission regulatory arrangements for public credit institutions the preparation of the quarterly report (hereinafter public quarterly reports). 2. The Authority shall establish and document the policy disclosure requirements for evaluation, t.sk. procedures, which apply an exemption from disclosure requirements with respect to the materiality of information, protected and confidential information, as well as taking into account the amount of information that public credit quarterly reports as required to detect, assess, or other disclosures must be provided more frequently than once a year. 3. Policy disclosure requirements for assessment of the adequacy of the Management Board of the authority or approved them by a Committee. 4. The Authority shall establish procedures for the disclosure requirements in proportion to its size, the amount of the operation and activities, as well as according to the organisational structure of the authority, to ensure that: 4.1 the Department or unit is fixed and the employees who are responsible for policy development, implementation and evaluation in relation to the materiality of the information, protected and confidential information as well as to the periodicity of the disclosure of the information; 4.2. policy development, implementation and evaluation process are involved in all the important departments of the authority and functions of the t.sk. the risk control function, compliance control function; 4.3. is defined in the internal reporting arrangements for the implementation of the policy related to the materiality of the information, and confidential information is protected, as well as the disclosure of the assessment of recurrence; 4.4. There is a certain degree of transparency for each exemption from the disclosure requirements in accordance with the provisions referred to in chapter V or disclosure in accordance with the rules of the recurrence as referred to in chapter VI. 5. The final decision on whether to apply the exemption from disclosure requirements with respect to the materiality of information, protected and sensitive information, and whether the disclosure of the recurrence as assessed by the authorities accept the Board or a Committee thereof. The decision shall be taken on the basis of the assessment, prepared for submission to the Department or unit and staff who implement policies concerning the materiality of information, protected and confidential information as well as the opening of the recurrence. 6. the authority shall document and store the provisions referred to in paragraph 4 of the rules of procedure, referred to in paragraph 5 and II, III or of the provisions referred to in chapter IV assessment results to ensure the authorities implement policy disclosure requirements traceability and transparency, such as research that reflects the information considered as a protected disclosure authority impact the business. 7. If the institution disclose information on its policies to comply with the disclosure requirements in accordance with the regulations referred to in the eighth, it shall consider the need to disclose information about its policies regarding the materiality of information, protected and confidential information as well as the opening of the recurrence.
II. assessment of the relevance of information

8. Article 432, paragraph 1 provides that the authority may be exempted from the disclosure requirements for one or more of the eight parts of the regulation referred to in title II, with the exception of information which is disclosed in accordance with paragraph 2 of article 435 c), and article 437.450, if such information is not material. 9. the authority shall assess the materiality of the information disclosed on a regular basis, but not less frequently than once a year. While the authority shall consider whether it is not necessary to disclose information to the extent that it exceeds the eighth part of the regulation. 10. when assessing the materiality of the information disclosed, the authority shall take into account at least the following factors: 10.1. evaluate both quantitative and qualitative disclosure of materiality; 10.2. materiality is assessed separately for each individual disclosure requirements and, if necessary, information disclosure requirements. The authority shall consider the information that the individual is a minor, the cumulative effect of non-disclosure, i.e., whether the non-disclosure of particular information would not cause shortages of information which might influence the economic decision of users of information; 10.3. materiality is assessed, taking account of the circumstances and the context at the time of disclosure, such as the economic and political environment, assesses materiality 10.4. from the user's perspective and on the basis of the information the user needs and the acceptable materiality level. Disclosure of the amount of information adapted to the needs of users of information and disclosures shall be evaluated, on the basis of the information the user understanding of the institution and its risk profile. Information relating to areas with a high rating, most likely, subjectivity can be regarded as relevant information to users; 10.5. the materiality assessed taking into account the nature of the information disclosed and the purpose. Information on the nature and purpose criteria do not apply equally to all disclosure requirements, such as establishing the importance of high-quality disclosure, it may be necessary to apply specific procedures or indicators that are different from those used to determine the quantitative disclosures for materiality; 10.6. the materiality assessed taking into account the specific nature of the institution concerned, which depends on the body characteristics, activities, risks and risk profile, and the rating would not apply automatically, referring only to the authorities of the size or scope of its role in the domestic market or its market share; 10.7. materiality is assessed, based not only on the amount. To assess, on the basis of quantitative indicators relating to amounts or quality indicators in relation to the substance of the information disclosed, for example, risk or risks that may be relevant according to their type or size. Materiality assessment based only on quantitative indicators or materiality thresholds, not considered appropriate disclosure requirements; 10.8. materiality can be different for different disclosure requirements, depending on the risk of development, for example, the authority shall assess in particular the risks or activities that impact it is or may be exposed in the future. The development of risks or change in circumstances and the relevance review, the authority may change and disclosure of the information. 11. in addition to the provisions of the authority referred to in paragraph 10 may take into consideration other factors, if they are to be considered as plausible and objectively justified, to assess the materiality of the information disclosed. 12. in the opinion of relevance assessment every relevant issue, the competent authorities of the Department and function (not just risk management function). Assessing the relevance of information in accordance with the provisions of paragraph 10, the authority shall take particular account of the following criteria: 12.1 on actual performance-based business model and long-term development strategy; 12.2. data or information element (risk exposure), with which the associated disclosures and evaluating materiality, the amount expressed as part of regulatory requirements, financial transactions or profitability figures or totals or as nominal value; 12.3. the position is bound to reveal information on the total amount of the exposures (by the amount of exposures or risk-weighted assets) or the risk profile of the institution; 12.4. the disclosure of information, in order to understand the body right risks and capital requirements, as well as development strategy, taking into account that the disclosures must not overlook the risks inherent to the institution development trends in relation to the previous disclosure period; 12.5. the amplitude of changes compared to the previous year position, subject to the disclosure requirements; 12.6. the current development and risk disclosure trends in the industry, as well as existing market practices on disclosure requirements.
III. Protection of confidential information or evaluation 13. Article 432, paragraph 2 provides that the authority may be exempted from the disclosure requirements for one or more of the eighth part of the regulation in titles II and III of these issues, except for the information that is disclosed in accordance with regulation and article 437.450, if such information is protected or confidential. 14. In considering disclosure requirements for protected information, the authority shall take into account: 14.1. when information is considered protected, there are exceptional situations and refer to the relevant information, the disclosure of which would undermine the competitiveness of the authority. If additional disclosures about products and systems become competitors and can reduce the value of the institution, the protected information refers to the institutions essential for the competitiveness of the operation (transaction) conditions or important business conditions; 14.2. the General competitiveness of the risk itself is not considered to be sufficient reasons to justify the exemption from disclosure requirements. The authority shall be based on the assessment, on the basis of the protected disclosure case studies; 14.3. the opportunity not to disclose the protected information is not used to justify the non-disclosure of information that could lead to institution not advantageous position in the market, because such information is disclosed to the authority any adverse risk profile; 14.4. the criteria for the competitiveness of the evaluation, taking into account the size of the institution and the scope. Authority justified the manner in which a particular disclosure can provide detailed insight into the business too. 15. Assessing the disclosure requirements relating to confidential information, the authority shall take into account that: 15.1. instances where the information is considered confidential, is an exceptional situation and can relate to situations when the industry is so concentrated that revealing information about the exposures can be detected in the sector, including information on relevant business partners; 15.2. the general reference to confidentiality is not a sufficient reason for application of the exemption from the disclosure requirements. The institution identifies and analyzes the extent to which disclosure could affect its customer or business partner or creates a statutory obligation of confidentiality.
IV. Review of the disclosure requirements more frequently than once a year 16. the authority shall assess the need to disclose all or part of the Regulation of the eighth part II and III of the information referred to in section more frequently than once a year, in the light of article 433 of the regulation, the criteria set out in. The authority, taking into account the amount of information that the quarterly reports for a specific public as required to detect, evaluate the need for more often than once a year to discover information about the equity capital requirements, risk exposures and other items for which the value of rapid changes. 17. the authority, taking into account the amount of information that the quarterly reports for a specific public as mandatory disclosure, in particular assess the need to disclose other information more often than once a year, if it meets at least one of the following criteria: 17.1. the authority is one of the three major institutions in Latvia; 17.2. the institutions of the four-year average of the asset exceeds 20 percent of Latvia's four year average gross domestic product.
V. information revealed by a body which is exempted from disclosure requirements with regard to materiality, protected information or confidential information

18. If the authority decides to apply an exemption from disclosure requirements with respect to any particular information or set of information that is identified as non-essential, it reveals the following facts. 19. If the authority decides to apply an exemption from disclosure requirements with respect to protected or confidential information, it found: 19.1. the type of information or disclosure requirements, which are recognised as protected or confidential in accordance with the decision of the authority; 19.2. the justification for applying the exemption from disclosure requirements, i.e. the justification for classifying information as protected or confidential; 19.3. General information about the disclosure requirements from which exemption applies. The authority uses methods that allow disclosure of information while respecting privacy or protected information, such as not disclosing the names of individual customers or applying the appropriate level of aggregation. 20. If the information or confidential information protected status, the authority found enough detailed information and explanation to users of information to fully understand the risks of changes in the reporting period. To run the institution disclosure requirements and detect relevant information, which is assessed as confidential or protected, can be applied to the aggregate or anonymous methods. 21. the authority of the information referred to in this chapter may disclose directly to the relevant section of the risks described under Article 434 of the regulation or in one single location in the same medium.
Vi. Information that discovers more often than once a year 22. the authority shall assess and determine the information that is found more frequently than once a year, the amount and the degree of detail, with the exception of information that public quarterly reports as required disclosures, and authority that falls within any of the rules referred to in paragraph 17 of the criteria assessed in particular need more frequently than once a year to discover the following: 22.1. equity capital and the relevant indicators in accordance with regulation 437. and referred to in article 492. , t.sk. information set 20 December 2013 the European Commission's implementing Regulation (EU) No 1423/2013 establishing implementing technical standards concerning disclosure of information on the institutions themselves set capital requirements in accordance with European Parliament and Council Regulation (EC) no 575/2013, (hereinafter the implementing regulation), the relevant annexes IV and V lines: 22.1.1. the first level of basic capital as defined in row 6 and 29. 22.1.2. first level, additional capital, as defined in row 36 and 44, 22.1.3. first level capital, as defined in row 45, 22.1.4. second level capital, as laid down and in row 51.58, 22.1.5. total capital as set out in row 59, 22.1.6. each level of regulatory capital adjustments as defined in 28, 43 and 57. line 22.1.7. first level of basic capital as defined in the table of row 61, 22.1.8. first level capital indicator 62. as defined in the line, the total capital indicators 22.1.9. as 63. row; 22.2. the information to be disclosed in accordance with the regulation of article 438 c), (d), (e) and (f)))): 22.2.1. the risk weighted assets and capital requirements, by the risks referred to in article 92 of the regulation in point 3, the risk weighted assets 22.2.2. value and capital requirements, by the risks referred to in article 92 of the regulation in point 3, and the breakdown of the exposure classes specified in article 438 of the regulation; 22.3. information on the leverage ratio, as defined in regulation in article 451, t.sk. information set February 15, 2016. the European Commission's implementing Regulation (EU) 2016/200 establishing implementing technical standards concerning disclosure of information on institutions leverage indicators laid down pursuant to Regulation (hereinafter – IT is about leverage index) of annexes I and II to the respective lines: 22.3.1. for counter use first level capital, as defined in line with the EU-23. the transitional measures laid down in the line of choice, for the denominator used in 22.3.2. leverage ratio of total exposure value, as defined in row 21, 22.3.3. leverage ratio, as defined in 22. row; 22.4. information on exposures, t.sk. quantitative information on the approach based on internal ratings, used in accordance with the regulation of article 452 d), (e) and (f))), separately defined in point of exposure for which the authority themselves certain obligations fulfillment losses or adjustment when calculating the degree of exposure to the risk weighted exposure amounts, and, separately, for exposures which the authority does not apply those assessments; 22.5. information about other items, if those of rapid changes in the value, and the items found in accordance with the regulations referred to in the eighth, but which in the period after the last disclosure substantial changes have occurred. 23. the authority discovered additional interim information on rule 22, paragraph, if the assessment of the need for the authorities to disclose information more often than once a year suggests that the following additional information is required to information users fully understand the risk profile of the institution. 24. Authorities found the additional information in accordance with the provisions of paragraphs 22 and 23, as well as taking into account specified in paragraph 25 of its regularity, be consistent and comparable over an extended period of time. 25. the authority, which meets one of the criteria referred to in paragraph 17, to evaluate the need for additional discover rules 22.1 and 22.3, 22.5 22.2.2.-the information referred to in paragraph every six months. 26. the authority rules 22.1 and 22.3 the information referred to in paragraph found in applying the regulation and its implementation of multiplier for the specified shape. 27. the authority referred to in paragraph 22 of the rules of the information found at the public quarterly statement, adding to it, or to other information publications and regulations referred to in Article 434 of the conditions for the provision of information in the media one or place. 28. If a body which meets at least one of the terms referred to in paragraph 17 criterion, decide not to disclose all or any part of the provisions referred to in paragraph 22 information more frequently than once a year, then discovers this fact, by publishing the annual information in accordance with the regulations laid down in the eighth, and provides an explanation of the reasons for non-disclosure of information.
VII. Closing questions 29. the authority for the first time the information prepared in accordance with the rules and requirements found on the reporting period that ended 31 December 2015. 30. the authority policies and procedures comply with the requirements of this regulation provides up to date, the first time after the date of entry into force of the provisions of the information is disclosed in accordance with the eighth part.
Informative reference to the European banking authority guidelines rules contain provisions that the European banking authority 2014 guidelines of 23 December EB/PN/2014/14 "guidelines on material, protected and confidential information and for the discovery of regularity in accordance with Regulation (EC) no 575/2013 432. Article 1, paragraph 2 of article 432 and 433 of the article". Financial and capital market Commission President p. Bird