In Effect Since 1 January 2002

In effect since 1 January 2002

Published: in the newspaper Latvijas Vestnesis (The Official Gazette of the Government of the Republic of Latvia) No. 183on 18 December 2001

Decision No. 21/9

of the Board of the Financial and Capital Market Commission
Riga, 30 November 2001

REGARDING APPROVAL OF THE “REGULATIONS ON ELIGIBLE HOLDERS OF SECURITIES WHICH MAY BE USED BY BANKS FOR HOLDING SECURITIES OF ZONE A COUNTRIES”

On the basis of Articles 5, 6, 7 and 17 of the Law on the Financial and Capital Market Commission and Article 50 of the Credit Institution Law,

The Board of the Financial and Capital Market Commission decides:

1. To approve “the Regulations on Eligible Holders of Securities which may be used by Banks for Holding Securities of Zone A Countries” (in the appendix).

2. To determine that the Regulations shall come into effect from 1 January 2002.
Chairman of the Financial

and Capital Market CommissionU.Cerps

REGULATIONS ON ELIGIBLE HOLDERS OF SECURITIES WHICH MAY BE USED BY BANKS FOR HOLDING SECURITIES OF ZONE A COUNTRIES

1. GENERAL PROVISIONS

1.1. “Regulations on Eligible Holders of Securities which may be used by Banks for Holding Securities of Zone A Countries” (hereinafter - the Regulations) have been prepared in accordance with the Law on the Financial and Capital Market Commission and the Credit Institution Law.

1.2. Terms used in the Regulations:

1.2.1. Zone A country – zone A country referred to in the Regulations on the Capital Adequacy Calculation issued by the Financial and Capital Market Commission;

1.2.2. Holder of securities – a person occupied with the holding of securities or security accounts.
1.3. The Regulations determine the holders of securities banks registered in the Republic of Latvia may be used for holding securities of zone A countries on own account.
2. PROVISIONS FOR THE HOLDING OF SECURITIES ISSUED IN ZONE A COUNTRIES

2.1. Holding of securities issued in zone A countries on own account is allowed to Banks only:
2.1.1. with a holder of securities registered and licensed in zone A countries, who has the rights to provide such services in the country it is registered in;

2.1.2. with a subsidiary of the holder of securities referred to in Clause 2.1.1;

2.1.3. with a holder of securities registered in the Republic of Latvia, Republic of Lithuania or the Republic of Estonia that has rights to provide such services in the country it is registered in;

2.1.4. with the Latvian Central Depository.

2.2. If a holder of securities issued in zone A countries is a holder of securities referred to in Clause 2.1.3, then a bank shall ensure that the respective holder of securities holds the securities issued in zone A countries at the security holders referred to in Clauses 2.1.1, 2.1.2 or 2.1.4 of the Regulations.

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