Originally from:
International Securities Law and Regulation - 2nd Edition - Looseleaf
International Securities Law and Regulation - 2nd Edition - Electronic
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Introduction
Regulatory System
Under Latvian law, the term ‘securities’ applies to financial instruments which are
defined as agreements that simultaneously give rise to financial assets of one person and
financial liabilities or equities of another person.
Participants in the financial instruments market in Latvia are credit institutions that
provide investment services or ancillary (non-core) investment services, investment bro-
kerage firms, issuers, investors, companies that pursuant to law are entitled to manage
collective investment undertakings, market makers, the Latvian Central Depository, and
other persons who engage in the activities governed by Law on the Financial Instruments
Market Law.1
In Latvia, investment services are provided exclusively by investment brokerage firms
and credit institutions, as well as companies managing open-end investment funds, in due
course of the regulatory provisions governing their operation. ‘Investment services pro-
vided in Latvia’means any investment services that are advertised or offered in a way that
the wording, manner, or contents of an advertisement or an offer evidences that the
respective service is provided to residents of Latvia.2
A bank registered in a member state of the European Union (EU) or the European Eco-
nomic Area (EEA) can, within 30 days after it has submitted the relevant notification
regarding the provision of financial services in Latvia to the credit institution supervisory
institution of such state, commence providing financial services in Latvia without open-
ing a branch. If, within 30 days after the notification has been received, the Finance and
Capital Market Commission has not received a justified written refusal of the credit insti-
tution supervisory institution of the relevant state, it is deemed that it does not object to the
provision of financial services by such credit institution in Latvia.3 Other foreign credit
institutions may operate in Latvia and offer their investment services only via their locally
opened branches.
Introduction
Regulatory System
Legal Sources
Authorities
Procedures
Legal Order and Regulatory Interests with Special Regard to Foreign Elements
Admission
Periodic Disclosure
Trading Rules
Jurisdiction Conflicts
Genuine and False Conflicts
Aiga Klimovica Lejins, Torgăns & Vonsovics Riga, Latvia
