We will be pleased to reply to specific questions or analyse a situation topical to you.
Inese Hazenfusa, Partner, Head of Banking & Finance practice group, TGS Baltic
Ivita Samlaja, Associate, TGS Baltic
BANKING & FINANCE
New law – Insurance and Reinsurance Law
On 1 July 1 2015, the new Insurance and Reinsurance Law came into force. The law adopts the regulations of the previous Law On Insurance Companies and Supervision Thereof and the Reinsurance Law, as well as the requirements of Directive 2009/138/EC.
New Law - Deposit Guarantee Law
On 1 July 1 2015, the new Deposit Guarantee Law came into force, implementing the requirements of Directive 2014/49/EU. The law defines the general principles of guarantees for deposits, the deposit guarantee fund-raising, the procedure for managing and use of the deposit, as well as the mutual cooperation of deposit guarantee funds. The law applies to the credit institutions registered in Latvia and their branches, savings-and-loan banks, branches of foreign credit institutions located in Latvia, as well as to branches of the EU credit institutions established in Latvia, if they are part of a deposit guarantee fund.
Disposal of the clients’ financial means by terminating business relationship
On 14 July 2015, amendments to the Law on the Prevention of Money Laundering and Terrorism Financing came into force. The amendments determine the actions of a credit and financial institution in cases of unilateral termination of business relationship by the credit or finance institution. In such cases the financial means placed in closed accounts shall be transferred to the account in the other credit institution specified by the client or shall be paid out in cash, if there is no such account or the transfer may not be made, provided that there is no suspicion regarding money laundering.
New Law - Law on Recovery and Resolution of Credit Institutions and Investment Brokerage Companies
On 16 July 2015, the Law on Recovery and Resolution of Credit Institutions and Investment Brokerage Companies came into force. The law has been adopted by implementing the European Union Bank Recovery and Resolution Directive (2014/59/EU). The purpose of the law is to ensure that application of the recovery and resolution measures towards credit and financial institutions promote a stable financial system, as well as to protect depositors’ interests and to reduce the possibility to use the state budget funds for rescue of the financial institutions.
Improvement of monitoring of the insurance and reinsurance intermediaries
On 16 July 2015, amendments to the Law on the Activities of Insurance and Reinsurance Intermediaries came into force. The aim of the amendments is to improve and make more efficient the monitoring of the insurance and reinsurance intermediaries, as well as to introduce larger protection of the interests of an insured person. According to the amendments the procedure for revision of the client’s complaints has been determined, as well as the insurance and reinsurance intermediaries are prohibited to disclose the information on the client found out during the intermediation. The annual minimum limit of the third party liability of insurance and reinsurance intermediaries has been increased to EUR 1,875,927 (previously – EUR 1,680,300). The minimum limit of the third party liability per one case has been increased to EUR 1,250,618 (previously – EUR 1,120,200).
Provision of the client’s information to the State Revenue Service
On 4 August 2015, amendments to the Credit Institutions Law came into force. The amendments introduce the international information exchange standard of the Organisation for Economic Cooperation and Development. The information which is considered to be important or predictable and which the credit institution is obliged to provide regarding its clients to the State Revenue Service in the field of international cooperation in tax administration, has been specified.
Manager's right to provide investment services
On 8 October 2015, amendments to the Law on Alternative Investment Funds and Their Managers have been adopted in the third (last) reading. According to the amendments the manager of an alternative investment fund will be allowed to provide investment services and the services ancillary to investments. In addition, the payment for supervision to the Financial and Capital Market Commission has been set for the manager of an alternative investment fund, which provides also investment services, and to its branch registered in Latvia. The amendments will come into force on 6 November 2015.
New law – Consumer Dispute Extrajudicial Examination Law
On 9 July 2015, the Consumer Dispute Extrajudicial Examination Law came into force. The law implements the requirements of Directive 2013/11/EU and ensures compliance with the principles of OECD recommendation C(2007)74. The purpose of the law is to establish unified requirements for extrajudicial dispute resolvers in order to provide consumers an opportunity to exercise and protect their rights by independent, objective, visible, efficient, fast and fair extrajudicial means, thus also reducing costs for dispute resolution. The law applies to resolvers of extrajudicial disputes, including cross-border disputes, between a consumer and a seller or a service provider.
Dispute resolution procedure of a consumer and a seller or service provider
On 9 July 2015, amendments to the Consumer Rights Protection Law came into force. The law has been supplemented with a regulation regarding dispute resolution procedure of a consumer and a seller or service provider. The seller or the service provider is obliged to inform the consumer regarding the extrajudicial dispute resolvers. The aforementioned information should be provided either on the web site of the seller or service provider, or in the provisions of the agreement.
For more information please contact: Inese Hazenfusa, Ivita Samlaja