Investment brokerage firm licence in Latvia

Investment brokerage firm is a capital company (limited liability company or joint stock company) that provides investment services and ancillary (non-core) investment services. 

Services

Investment firm can decide to provide one, several or all of the following services:

  1. the acceptance and transfer for execution of orders by investors for transactions in financial instruments;
  2. execution of orders by investors for transactions in financial instruments at the expense of investors or third parties;
  3. individual management of financial instruments of investors in accordance with an authorization given by investors (portfolio management service);
  4. initial allocation of financial instruments if the provider of investment services does not purchase the financial instruments or does not guarantee the purchase thereof;
  5. purchase of financial instruments for initial allocation or guaranteeing the purchase of financial instruments not distributed during the initial allocation;
  6. performance of transactions with financial instruments on behalf of a credit institution or investment brokerage company; and
  7. the provision of consultations regarding investments in financial instruments;
  8. maintenance of combined (multilateral) trade system.

Receiving the licence

To receive the licence for providing investment services and ancillary (non-core) investment services, the investment firm has to submit to the Financial and Capital Market Commission respective application.

Simultaneously with the application, the brokerage firm submits to the Commission the following documents:

  1. Application of the Board and Council (if such is formed) members, with information of members` citizenship, education document copies, information of qualification, respective authorities certificate on impunity, description of previous working places within a period of 10 years and a description of the duties performed, etc.;
  2. Balance sheet;
  3. Descriptions of internal audit system and procedures significant for the operation of the company;
  4. Activity plan for at least the next three years of operation;
  5. Description of the provision of respective services and controlling procedure;
  6. Description of procedure for identification of transactions;
  7. Description for policy on averting the interest conflict;
  8. Description for order execution policy;
  9. Information regarding shareholders.

Initial capital

The initial capital of investment brokerage firm differs from EUR 50 000 – EUR 730 000 depending on the services the company plans to provide.
The Commission shall evaluate the initial capital amount as well as the future possibilities to generate the funds. 

Members of the Board and Council, as well as shareholders shall have a good reputation.
The Commission examines the application of investment firm and takes the decision within a three-month period upon the receipt of all the documents. 

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