Published: 26.11.2022 Updated: 03.01.2023

Since 1 January 2002, the Investor Protection Law has been in force in Latvia which lays down general principles for the operation of investor protection system, the procedures for the provision of financing necessary for its functioning and disbursement of compensations.

In cases where Latvijas Banka ascertains that an investment service provider who has received a special permit (licence) of Latvijas Banka for the provision of investment services, or branches thereof in foreign states that have not joined the foreign investor protection system, is unable to meet its obligations in full and within time limits, or a court ruling on declaration of insolvency or liquidation of investment service provider has entered into force, the investors are entitled to receive a compensation.

The compensation shall be calculated and paid only to the investor who, in accordance with the provisions of the Investor Protection Law, is entitled to compensation in the amount of outstanding liabilities, but not more than 20 000 euro, regardless of the number of accounts opened for the investor. The compensation shall be disbursed in euro. 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.

The compensation shall be disbursed 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.

Financial means for the disbursement of compensation shall be provided by the participants to the investor protection system in proportion to their share in the portfolio of financial instruments of the participants to the investor protection system.

Latvijas Banka shall determine the procedures and time limits for the disbursement of compensation. The compensation shall be disbursed to those investors who have applied for the compensation for outstanding liabilities. An application for compensation must be submitted within one year after the investor has become aware of the failure of the investment service provider to meet its liabilities, but not later than five years from the date of fulfilment of the liabilities. The disbursement of compensation shall be carried out in three months after the date of the decision on recognition of an application as justified.

Section 7 of the Investor Protection Law provides for the cases where compensation shall not be disbursed.

Participants to the investment system have an obligation to inform their existing and future clients (investors) of their participation in the system and the amount of compensation for outstanding liabilities, as well as the requirements of the Investor Protection Law to enable an investor to receive a compensation.

Participants to the investor protection system

  • "Swedbank Ieguldījumu Pārvaldes Sabiedrība" AS
  • AS "Aquarium Investments" IPS
  • AS "Rietumu Asset Management" IPS
  • Investment management company "SEB Investment Management"
  • Ieguldījumu pārvaldes akciju sabiedrība "INVL Asset Management"
  • Integrum Asset Management IPAS
  • IPAS "Indexo"
  • Luminor Asset Management IPAS
  • SIGNET ASSET MANAGEMENT LATVIA IPS
  • "CBL Asset Management" Ieguldījumu pārvaldes akciju sabiedrība
  • AS Alphinox Quality
  • AS Mintos Marketplace
  • AS TWINO Investments
  • Dukascopy Europe IBS AS
  • Indemo SIA
  • SIA "Capitalia Investment Services"
  • SIA "DN Operator"
  • SIA "Viainvest"
  • Akciju sabiedrība "LPB Bank"
  • Akciju sabiedrība "Reģionālā investīciju banka"
  • Akciju sabiedrība "Citadele banka"
  • Akciju sabiedrība "Rietumu Banka"
  • AS "Industra Bank"
  • AS "SEB banka"
  • BluOr Bank AS
  • Luminor Bank AS Latvia branch
  • OP Corporate Bank Plc Latvia branch
  • Signet Bank AS
  • "Swedbank" AS
  • Baltic International Bank SE (the Board of the FCMC on 12 December 2022 decided to suspend the provision of financial services at Baltic International Bank SE)