Protection of investor interests is in accordance with the Financial Instruments Market Law, the Financial Instrument Market Directive MiFID II (2014/65/ES) and the Financial Instrument Market Regulation MiFIR (600/2014).

 

Since January 1, 2002 in Latvia the Investor Protection Law (available in Latvian) has been in force, guaranteeing investors a compensation in the amount of 90% of irrevocably lost value of financial instruments or of losses incurred by the non-performance of investment services, though not more than 20,000 EUR, in case a licensed investment company is unable to meet its obligations in respect the investor. Under the said law, each investor is entitled to certain compensation from irrevocably lost value of financial instruments or of losses incurred by the non-performance of investment services.

 

Non-performed investment service – an investment service which an investment company has accepted for performance but has partially or fully failed to perform in the result of which the investor has incurred financial losses or the financial instruments have been irrevocably lost in the result of act, omission or criminal activity of the investment company. If necessary, the Financial and Capital Market Commission (FCMC) organises and monitors payments of market participants for compensations, examines validity of compensation claims and ensures payment of compensation.

 

Compensation is not paid for transactions, related to money laundering, as well as in case of contracts with special conditions, performance of which caused deterioration of financial standing of the investment company. No compensation is envisaged by the Law in cases when the investor has incurred financial losses caused by changes in the value of the financial instrument or lack of liquidity. More detailed information about the Law and the specifics of its character is available at the webpage of FCMC.

 

MiFID II

MiFID II aims to make Financial markets more efficient, resilient and transparent, and to ensure the highest level of investor protection in transactions in financial instruments. MiFID requirements are encased in the law on the Financial Instruments Market

 

MiFIR

MiFIR is binding for all the European Union member states and it contains rules and guidelines for transaction execution and financial instrument trade transparency

 

Using of MiFID II and MiFIR 


establishment of pre-sales and post-sales transparency requirements in respect transactions with financial instruments
client categorisation (private client, professional client, eligible counterparty)
prevention of conflict of interest
best execution – providing clients with the best possible results in transactions with financial instruments

Before making any decisions about using financial services, we kindly ask you to acquaint yourself with and assess the main risks, related to trading of financial instruments! Please note that trading of certain financial instruments may cause you loss of more money than initially invested.

 

With the aim to comply with the requirements of the Directive we invite you to get acquainted with the Policy of performance of customers’ orders in transactions with financial instruments (available only in Latvian and Russian), as well as the Description of risks, available under the section “How to become our customer”.