LATVIJAS BANKA

Regulation for Compiling Reports on Securities

Issued pursuant to Article 39 of the
Law "On the Bank of Latvia"

1. General Issues

1. The Regulation provides for the procedure of compiling and submitting reports on securities (hereinafter, the Reports) by a bank, a branch of a foreign bank and an investment brokerage company to the Bank of Latvia.

2. Terms used in the Regulation:
2.1 issue - a set of securities where all securities have equal rights attached thereto;
2.2 security - a private law document that certifies the issuer's obligations toward the holder of the document without prejudice to the scope of rights attached thereto, or that certifies the holder's interest;
2.3 equity - a share and a security equivalent to a share representing ownership of a stake in the capital of a capital company. An investment certificate of an investment fund, including a money market fund, shall be deemed an equity;
2.4 quoted share - a share placed on regulated markets;
2.5 unquoted share - a share not placed on regulated markets;
2.6 investment certificate - a security certifying participation of a fund investor in an investment fund and the rights arising from such participation;
2.7 other equity - an equity other than a share, investment certificate of an investment fund, including a money market fund;
2.8 state government - a separate institutional unit exercising some of the functions of government at a level below that of central government and above that of local government, except for the administration of social security funds. The state government comprises those public administration bodies which are controlled and mainly financed by state governments and whose competence is restricted to the economic territories of the states.
2.9 Other terms are used in the same meaning as in the Bank of Latvia's "Regulation for Compiling the Monthly Financial Position Report of Monetary Financial Institutions". 

3. The purpose of the Regulation is to obtain information that would enable the compiling and publishing of the national balance of payments and international investment position statistics, financial account statistics, and other financial intermediaries statistics in line with the international standards and legislation of the European Central Bank. 

2. Compiling Reports 

2.1 Basic requirements for compiling reports

4. A bank and a branch of a foreign bank shall compile the following reports:
4.1 "Monthly Report on Securities with ISIN Codes" (Appendix 1);
4.2 "Monthly Report on Securities without ISIN Codes" (Appendix 2);
4.3 "Quarterly Report on Equity Holdings (according to Positions 0700 and 1700 of the "Monthly Financial Position Report")"; Appendix 3).

5. An investment brokerage company which is included in the register of investment service providers on the financial instrument market established by the Financial and Capital Market Commission and which has a licence for the provision of the ancillary (non-core) services of holding financial instruments shall compile the following reports:
5.1 "Monthly Report on Securities with ISIN Codes" (Appendix 1);
5.2 "Monthly Report on Securities without ISIN Codes" (Appendix 2). 

2.2 "Monthly Report on Securities with ISIN Codes" 

6. "Monthly Report on Securities with ISIN Codes" shall contain data on securities which have been assigned an International Securities Identification Number (hereinafter, the ISIN code) by a participant or an authorised representative of the Association of National Numbering Agencies in compliance with the international standard ISO 6166 "ISIN".

7. Part 1 "Outstanding stock of securities" of the Report shall contain data on securities that are reported on the asset side of the balance sheet or that are entries on the financial instrument accounts, including securities owned by the customers of the bank, branch of a foreign bank or investment brokerage company as at the last day of the reporting month.

8. Part 2 "Non-resident securities data" of the Report shall contain data on those securities that do not contain the code "LV" in the position "Issuer's country code" of Part 1 of the Report.

9. A bank and a branch of a foreign bank shall not report securities representing ownership of a stake in an associated or affiliated company.

10. For a bank and a branch of a foreign bank, the sum total of multiplication of the values of the positions "Book value (in lats) and "Number" of the reported securities holdings shall equal Positions 0500 and 0600 of the "Monthly Financial Position Report" (except Position 0607 "State privatization certificates".

2.3 "Monthly Report on Securities without ISIN Codes"

11. "Monthly Report on Securities without ISIN Codes" shall provide data on the securities reported on the asset side of the balance sheet and those held on the financial instrument accounts, including securities owned by the customers of the bank, branch of a foreign bank or investment brokerage company, as at the last day of the reporting month which have not been reported in the "Monthly Report on Securities with ISIN Codes".

12. A bank and a branch of a foreign bank shall not report securities representing ownership of a stake in an associated or affiliated company.

13. For a bank and a branch of a foreign bank, the total amount of multiplication of the values of the positions "Book value (in lats) and "Number" of the reported securities holdings shall equal Positions 0500 and 0600 of the "Monthly Financial Position Report" (except Position 0607 "State privatization certificates".

2.4 "Quarterly Report on Equity Holdings (according to Positions 0700 and 1700 of the "Monthly Financial Position Report")" 

14. In the "Quarterly Report on Equity Holdings (according to Positions 0700 and 1700 of the "Monthly Financial Position")", a bank and a branch of a foreign bank shall provide data on securities representing ownership of a stake in an associated or affiliated company as at the last day of the reporting quarter.

15. The sum total of multiplication of the values of the positions "Book value (in lats)" and "Number" shall equal Positions 0700 and 1700 of the "Monthly Financial Position Report".

2.5 Report positions

16. The 12-digit code of the respective security which has been assigned by a participant or an authorised representative of the Association of National Numbering Agencies in line with the international standard ISO 6166 "ISIN" shall be reported in the position "ISIN code".

17. The code of the country of residence of the issuer of the security in accordance with the international standard ISO 3166 "Codes for the representation of names of countries and their subdivisions" shall be stated in the position "Issuer's country code". Where the issue has been performed with the intermediation of another company, the country code of the final receiver of the funds generated by the issue shall be reported.

18. In the position "Issuer's sector code", the following issuer's sector codes shall be reported (where the issue has been performed with the intermediation of another company, the sector code of the final receiver of the funds generated by the issue shall be reported; the sectoral classification of securities issued by an investment fund, including a money market fund and pension fund, shall be based on the type of fund):
18.1  for non-financial corporations - code "S.11";
18.2  for central banks - code "S.121";
18.3  for credit institutions - code "S.1221";
18.4  for money market funds - code "S.1222";
18.5  for credit unions - code "S.1223";
18.6  for investment funds, excluding money market funds - code "S.1231";
18.7  for other financial intermediaries, except insurance corporations, pension funds and investment funds - code "S.1232";
18.8  for financial auxiliaries - code "S.124";
18.9  for insurance corporations and pension funds - code "S.125";
18.10  for central governments - code "S.1311";
18.11  for state governments - code "S.1312";
18.12  for local governments - code "S.1313";
18.13 for mandatory state non-funded pension scheme funding - code "S.1314";
18.14  for households - code "S.14";
18.15  for households and institutions serving households and foundations - code "S.15".

19. A full name of the securities issuer shall be reported in the position "Issuer's name". Where the issue has been performed with the intermediation of another company, the name of the final receiver of the funds generated by the issue shall be reported.

20. The date when the security has been issued shall be stated in the position "Issue date". In the event of an additional issue, the original issue date shall be indicated.

21. The security's maturity date shall be stated in the position "Maturity date".

22. In the position "Instrument code", the following security codes shall be reported:
22.1  for short-term debt securities - code "F.331";
22.2  for long-term debt securities - code "F.332";
22.3 for quoted shares - code "F.511";
22.4  for unquoted shares - code "F.512";
22.5  for other equities - code "F.513";
22.6  for investment certificates of investment funds, excluding money market funds - code "F.521";
22.7  for investment certificates of money market funds - code "F.522".

23. The code of the currency of the securities issue shall be stated in the position "Currency code" in accordance with the international standard ISO 4217 "Codes for the representation of currencies and funds".

24. The position "Face value" shall contain the face value of the security.

25. The coupon rate of the debt security in % on the last day of the reporting month shall be reported in the position "Coupon rate (%)".

26. The code of the country of residence of the holder of the security in accordance with the international standard ISO 3166 "Codes for the representation of names of countries and their subdivisions" shall be stated in the position "Holder's country code":
26.1 for securities held on behalf of a customer, the country code of the respective customer shall be reported;
26.2 for securities held on a nominal financial instrument account where it is impossible to indicate the person holding the securities, the country code of the holder of the nominal financial instrument account shall be reported;
26.3 for securities obtained as a result of a reverse repo transaction, the country code of the transaction counterparty shall be stated.

27. In the position "Holder's sector code", the sector code of the holder whose country code has been stated in the position "Holder's country code" shall be reported in accordance with Paragraphs 18.1-18.15 herein. The sectoral classification of securities holdings in the portfolio of an investment fund, including a money market fund and pension fund, shall be based on the type of fund.

28. In the position "Holder's identification code", the identification code of the resident securities holder or resident holder of the nominal financial instrument account shall be stated as follows:
28.1 for a bank, a branch of a foreign bank and a money market fund - the respective code (MFI code) as per the "List of Monetary Financial Institutions of the Republic of Latvia", maintained and published by the Bank of Latvia ;
28.2 for an investment brokerage company - the respective registration number with the Commercial Register of the Enterprise Register of the Republic of Latvia;
28.3 for an investment fund, excluding a money market fund - the respective code as per the "List of Investment Funds of the Republic of Latvia", maintained and published by the Bank of Latvia.

29. In the position "Additional information", the code of the respective transaction or intermediation type shall be stated as follows:
29.1 for securities used in a repo transaction - code "R";
29.2 for securities used in (obtained as a result of) a reverse repo transaction - code "RR";
29.3 for securities on the nominal financial instrument accounts - code "N";
29.4 for securities used in a repo transaction and held on the nominal financial instrument accounts - code "RN";
29.5 for securities used in (obtained as a result of) a reverse repo transaction and held on the nominal financial instrument accounts - code "RRN".

30. The book value of one security in lats, with eight decimal places, shall be stated in the position "Book value (in lats)". It shall be recalculated in lats in accordance with the exchange rate of the respective currency set by the Bank of Latvia on the last day of the reporting period. The total amount of this position shall be reported in the position "Total amount".

31. The number of securities on the account of an individual securities holder shall be indicated in the position "Number". The sum total of this position shall be reported in the position "Total amount".

32. The total amount of securities issued shall be reported in the currency of issue in the position "Total amount outstanding".

33. The amount of the issuer's equity capital (the difference between assets and liabilities) shall be reported in the currency of issue in the position "Issuer's equity capital".

34. The issuer's profit/loss for the reporting year, earned or incurred during the period from the beginning of the financial year up to the last day of the reporting quarter, shall be reported in the currency of issue in the position "Issuer's profit/loss of the reporting year".

35. The issuer's four-digit code of the European Community statistical classification of economic activities NACE Revision 2 shall be reported in the position "Issuer's NACE code".

36. For issuers bearing the code "LV" in the position "Issuer's country code", the position "Issuer's registration number" shall contain the issuer's registration number with the Commercial Register of the Enterprise Register of the Republic of Latvia.

3. Procedure for Submitting Reports

37. A bank, a branch of a foreign bank and an investment brokerage company shall submit a "Monthly Report on Securities with ISIN Codes" and a "Monthly Report on Securities without ISIN Codes" to the Bank of Latvia on a monthly basis by the fifth business day of the following month.

38. A bank and a branch of a foreign bank shall submit a "Quarterly Report on Equity Holdings (according to Positions 0700 and 1700 of the "Monthly Financial Position Report") to the Bank of Latvia on a quarterly basis:
38.1 for the first quarter - by the fifth business day of May;
38.2 for the second quarter - by the fifth business day of August;
38.3 for the third quarter - by the fifth business day of November;
38.4 for the fourth quarter - by the fifth business day of February.

39. Reports shall be submitted to the Bank of Latvia in electronic form in compliance with the procedure stipulated by the Bank of Latvia.

4. Final Provisions 

40. The Bank of Latvia's Regulation No. 6 "Regulation for Compiling the 'Monthly Report of Holders of Securities'" of 12 July 2007 (Latvijas Vēstnesis, 2007, No. 116) shall be deemed invalid.

41. The Regulation shall take effect on 1 April 2010.

42. Monthly reports for March 2010 shall be submitted to the Bank of Latvia by 7 April 2010.

43. The quarterly report for the first quarter of 2010 shall be submitted to the Bank of Latvia by 10 May 2010.