In accordance with the Investor Protection Law of the Republic of Latvia in case the investment brokerage company cannot fulfil its obligations against the investor, the investor shall be entitled to compensation corresponding to the total amount of the defaulted obligations, up to a maximum of EUR 20 000, irrespective of the number of securities or investment accounts held by the investor. This does not apply to cases where investors have suffered losses due to changes in the prices of financial instruments or financial instruments have become illiquid.

Compensation is also not payable to:

1)        a person in respect of transactions in connection with which a criminal conviction has been obtained for money laundering, financing of terrorism or proliferation;

2)        investors who have disclosed that they are professional investors;

3)        the members of the board and the supervisory board of the system member, the head of the audit committee and the members of that committee, the head of the internal audit function and the members of that function, other employees of the system member who are authorised to plan, direct and control the activities of the system member and who are responsible for them, and persons who have directly or indirectly acquired more than five per cent of the capital of the system member;

4)        the persons responsible for auditing the statutory accounts of the system members;

5)        persons who are first-degree relatives or spouses of persons referred to in points 4 and 5;

6)        persons acting on behalf of the persons referred to in point 5;

7)        persons in respect of whom the Bank of Latvia has established that, on the basis of the specific terms of an individually concluded agreement, they have received high interest rates or financial concessions or have caused or used to their advantage circumstances which have caused financial difficulties for a system participant or have contributed to the deterioration of its financial position.

The Bank of Latvia shall determine the procedure and time limits for the payment of compensation. Compensation shall be paid to those investors who have submitted to the Bank of Latvia or its designated credit institution an application for compensation for unfulfilled obligations. An application for compensation must be submitted within two years from the date of publication by the Bank of Latvia of information in the official publication "Latvijas Vēstnesis" on the procedure for accepting applications for compensation and on the procedure and deadlines for payment of compensation. Compensation may be paid through the Bank of Latvia or through one or more credit institutions designated by the Bank of Latvia.

Compensation is paid for:

·       financial instruments according to the market price of the financial instruments owned by investors on the date of establishing a failure of the investment service provider to meet its obligations;

·      funds not qualifying for the guaranteed compensation under the Deposit Guarantee Law.

More information can be found in the Investor Protection Law of the Republic of Latvia and on the official website of Latvijas Banka.

Contact details of the Bank of Latvia:

                  E-mail: [email protected]

                  Telephone: +371 6702 2300