Disclosure of information in accordance with regulation (EU) 2021/955

  • Section:

Applicable national laws, regulations and administrative provisions governing marketing requirements for UCITS

Marketing of Investment Certificates of Investment Funds Registered in a Member State in Latvia

(1) A company licensed in a Member State which intends to market investment certificates of investment funds registered in a Member State in Latvia shall ensure the measures necessary in order to:

1) accept and process applications for the purchase, repurchase and return of investment certificates and make other payments to fund investors in accordance with the fund management rules or a document equivalent thereto, the fund prospectus, key investor information and the latest audited and approved annual statement of the fund, and also the half-yearly statement if it has been approved after approval of the annual statement;

2) provide investors with information regarding the submission of applications for the purchase, repurchase and return of investment certificates and the settlements related thereto;

3) help to process information in relation to the handling of investor complaints and inform investors regarding the procedures for submitting and examining submissions and complaints (disputes);

4) to provide investors with access to the information and copies of fund management rules or a document equivalent thereto, the fund prospectus, key investor information and the latest audited and approved annual statement of the fund, and also the half-yearly statement if it has been approved after approval of the annual statement;

5) provide investors with information, including by electronic means, regarding measures taken by the company managing the fund or financial and capital market participants whose supervision is exercised by the Commission or the supervisory authority of another Member State or by financial and capital market participants supervised by the European Central Bank;

6) perform the function of the contact point, indicating the person for communication with the Commission and other supervisory authorities.(2) In taking the measures referred to in Paragraph one, the Latvian language and another language, the use of which has been agreed by the Commission, shall be used for the communication.

The measures referred to in Paragraph one may be taken:

1) by the company managing the fund;

2) by financial and capital market participants whose supervision is exercised by the Commission or the supervisory authority of another Member State or by financial and capital market participants supervised by the European Central Bank;

3) by the two mentioned persons together.

(3) A company licensed in a Member State that wishes to market in Latvia investment certificates of investment funds under the management thereof without opening a branch, and without providing management of investment funds, shall conform only to the procedures laid down in this Section.(4) Marketing of the Member State fund certificates in Latvia may be started as of the day when the following documents drawn up in accordance with the procedures laid down in this Section have been submitted to the Commission:

1) an attestation by the competent authority of the home state of the fund regarding the registration of the fund that conforms to Annex 2 to Regulation No 584/2010 of the European Commission;

2) a notification by the company that manages the fund that conforms to Annex 1 to Regulation No 584/2010 of the European Commission and shall include information on:

  1. a) the procedures for the marketing of investment certificates of the relevant fund in Latvia,

(b) the address necessary to enable the Commission to issue an invoice or to notify the Commission of the payments to be made,

(c) the way in which the measures referred to in the first subparagraph to be taken will be ensured;

3) the fund management rules or a document equivalent thereto, the fund prospectus, key investor information and the latest audited and approved annual statement of the fund, and also the half-yearly statement if it has been approved after approval of the annual statement.

(5) The documents referred to in Paragraph four, Clauses 1 and 2 shall be submitted to the Commission in the language accepted by the Commission.

(6) The documents referred to in Paragraph four, Clause 3 shall be submitted to the Commission taking into account the following requirements:

1) key investor information prepared in a foreign language shall be accompanied by its translation into the Latvian language;

2) the fund prospectus, the fund management rules or a document equivalent thereto, and other documents to be submitted to the Commission that have been prepared in a foreign language shall be accompanied by their translation into the Latvian language or another language accepted by the Commission.

(7) A person who is entitled to take the decision on behalf of the fund shall certify the compliance of the translation with the information contained in the documents prepared in the original language. The requirements of Paragraph six shall also apply to amendments of the relevant documents.

(8) The Commission shall register and keep all notifications submitted by competent authorities of Member States.

(9) Upon marketing investment certificates of the fund in Latvia, the fund management company shall conform to and meet the following requirements:

1) it shall ensure that investors in Latvia have the same access to information and documents as in the home state of the fund;

2) it shall ensure that investors in Latvia are notified, in a timely manner, regarding changes in the operation of the fund and of the management company thereof, amendments to the fund prospectus, to the key information intended for investors, and to the articles of association of the fund management, taking into account the procedures specified in the fund prospectus or the articles of association of the fund management or a document equivalent thereto;

3) it shall ensure that, upon request of investors, they are provided free of charge with a copy in printed form of the fund prospectus, key investor information, the fund management rules or a document equivalent thereto, the fund’s annual and half-year statements;

4) it shall ensure that investors in Latvia have access to the procedures for the examination of submissions and complaints (disputes) of investors, as developed by the fund management company, and they may submit complaints regarding the services provided by such company in the Latvian language;

5) it shall ensure that the Commission is notified, in a timely manner, regarding amendments to key investor information, the fund prospectus, the fund management rules or a document equivalent thereto, specifying where the abovementioned documents are available in electronic form;

6) it shall conform to the requirements of the laws and regulations of the home state of the fund regarding the publishing procedures for the issuing, purchase, repurchase, and redemption of investment certificates;

7) it shall ensure that the documents referred to in Paragraph four, Clause 3 and any amendments thereto, and also translations of such documents are available in electronic form on the website of the person marketing investment certificates, the fund management company, or the fund itself;

8) it shall ensure that the content of the fund’s documents that are not translated into the Latvian language is explained to investors.

(10) When entering into a contract with the financial and capital market participants whose supervision is exercised by the Commission or the supervisory authority of another Member State or by financial and capital market participants supervised by the European Central Bank, the fund management company shall include in the contract:

1) rules regarding the procedures for compliance with the requirements specified in Paragraph nine, Clauses 1, 2, 3, 4, 7 and 8;

2) rules providing for the liability of the parties for failure to comply with them;

3) rules specifying which measures will be taken by the fund management company itself and which – by the financial and capital market participants whose supervision is exercised by the Commission or the supervisory authority of another Member State or by financial and capital market participants supervised by the European Central Bank;

4) a statement that the financial and capital market participants whose supervision is exercised by the Commission or the supervisory authority of another Member State or by financial and capital market participants supervised by the European Central Bank will receive all the information and documents necessary for them from the company that manages the funds.

(11) If the fund managing company wishes to amend the information notified or to amend the information relating to the classes of units of the fund to be marketed, it shall send to the Commission a written statement of the planned amendments 30 days before making the proposed amendments.

Charges are levied by the Commission for carrying out duties in relation to the cross-border activities of UCITS management companies

A branch of a company licensed in a Member State which is registered in Latvia shall pay to the Commission for the supervision of the branch in accordance with the following procedures:

1) up to one per cent of the gross income from the investment fund management services provided by a branch in Latvia in a quarter, but not less than EUR 2134 a year;

2) up to one per cent of the gross income from the investment services (portfolio management, investment advice and safekeeping and administration of financial instruments for the account of clients) provided by a branch in a quarter, but not less than EUR 711 a year.

The payments shall be made by the thirtieth day of the month following the quarter.

For delayed transfer or transfer at less than full amount of the payments the late charge shall be calculated for each delayed day of payment as 0.05 per cent of the outstanding amount.

The payments shall be transferred to the account of the Commission in the Bank of Latvia.

Contacts


Address:
Kungu iela 1, Riga, LV-1050
Phone:
6 7774800
E-mail:
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