How to register foreign exchange trading companies
Obtaining authorisation is a regulated process whereby you can become a participant of Latvia’s financial market and commence business after obtaining authorisation.
Foreign exchange trading companies may commence activities after registration in the register of currency trading companies maintained by Latvijas Banka in accordance with the Law on Payment Services and Electronic Money (hereinafter also – the Law).
Qualification requirements for the registered foreign exchange trading companies
The registration process comprises several steps:
- Preparation for the submission of application
- Submission of application
- Assessment of application
- Receipt of registration
Preparation for the submission of application: an introductory stage, during which Latvijas Banka organises a meeting with an entrepreneur to discuss its business planned. What does the entrepreneur do What does Latvijas Banka do What should be taken into account Documents to be submitted: Costs Preparing for submission of the application and provision of advice by Latvijas Banka are free of charge. Submission of application: An entrepreneur prepares and submits an application for registration. What does the entrepreneur do What does Latvijas Banka do What should be taken into account? List of documents to be submitted A legal person shall apply for the authorisation of a payment institution. The application shall be prepared in accordance with Section 26.3 of the Law and Latvijas Banka regulations No 221. Costs 2500 euro for examining documents and information submitted for authorisation (should be paid upon official submitting of the application). 500 euro for examining documents and information submitted for authorisation if a capital company is already registered in the register of institutions in accordance with Section 5 or 5.1 of the Law. Payment should be made at the time of the submission of application. Time limit for examining the application Latvijas Banka starts examining the application within 1 month from confirmation that the application is complete. The time limit for examining the application may be extended if the information provided in the application is not sufficient to take a decision on the issue of authorisation. Assessment of application: Latvijas Banka carries out the assessment of the application as to the substance. What does the entrepreneur do What does Latvijas Banka do? What should be taken into account? Costs No additional costs associated with the examination of documents during the assessment stage of the application are applied. Receipt of registration: Latvijas Banka finalises the examination of the application and takes a decision on the issue or refusal to issue authorisation. What does the entrepreneur do What does Latvijas Banka do What should be taken into account? Costs No additional costs associated with obtaining authorisation during the stage of obtaining authorisation. Supervision: Latvijas Banka supervises activities of the enterprise in accordance with requirements of Law. What does the entrepreneur do What does Latvijas Banka do What should be taken into account? Costs Foreign exchange trading company which has received a permit from Latvijas Banka shall pay Latvijas Banka EUR 2 000 per year and up to 0.2 per cent (inclusive) of the total amount of foreign currency purchased and sold per year, but the total currency trading company’s fee to Latvijas Banka shall not exceed EUR 20 000 per year. If the foreign exchange trading company is a payment institution registered in the register of institutions in accordance with Section 5 or 5.1 of the Law, its total fee to be paid to Latvijas Banka shall not exceed EUR 100 000 per year. Latvijas Banka annually issues regulatory enactments for determining the amount of payments for financing Latvijas Banka made by financial and capital market participants and submitting reports, in which the variable part of the payment is determined for each market participant, as well as the procedure for making payments.1. Preparation for the submission of application
2. Submission of application
3. Assessment of application
4. Receipt of registration
5. Supervision
Meeting with the prospective service providers
Latvijas Banka specialists offer advice to prospective market participants to help better understand the regulatory requirements for the process of authorisation, as well as to identify potential challenges by developing new and innovative products or business models.
Our specialists offer:
- Clarification of certain aspects of regulatory requirements;
- Advice on the application of regulation at an early stage of development of an innovative product or business model.
Apply for consultation. Please apply in advance to agree on the meeting time: This email address is being protected from spambots. You need JavaScript enabled to view it., +371 67 022 300.