Before applying, the regulations of the Markets in Financial Instruments Ordinance, which is the main legal act for controlling the country’s economic sphere, should be studied.
The shareholders of the licence-holder company are required to prove their experience in owning and managing large amounts of capital. The requirement applies only to those co-owners who hold more than 10% of the company’s shares.
When hiring staff, the founder has the right to decide independently on the qualifications of the employees, but the audit committee may challenge the decision. The company is audited annually, and if non-compliance is found, the licence may be suspended or revoked.
If a shareholder holds several holdings from different corporations, this should not prevent him or her from developing an investment company with a brokerage licence.
The financial standing of the owners of the organisation must be documented. In addition, documentation of the origin of the funds must be provided. If one of the beneficiaries is suspected of raising income in the shadow, it will damage the reputation of the entire firm.
Intangible assets may not be raised for the foundation of the share capital, the minimum level of contribution after the registration of the bank account is 125 thousand euros. Depending on the range of activities of the firm the irreducible threshold may increase up to EUR 730 thousand. Details on the formulas for calculating regulatory capital should be clarified with our specialists.
Jurisdiction in Latvia requires the employment of at least two resident directors in senior management positions. Their professionalism and experience is thoroughly verified. The documentation package must include information on the education and former jobs of the managers.
All subsidiaries of the licensed investment company must operate in the same field as the main office. It is prohibited to register any other activities in that legal entity.
Due to the passporting procedure, the Latvian brokerage licence is valid throughout the EU. The certificate is renewed every year. For renewal a small fee must be paid to the state fund.
It is a mandatory requirement to have at least 2 local directors (Latvian citizens) in the company structure.
We are market leaders
Years of activity
Taking a leading position
Banks and payment systems
Request a Free Consultation
Send your enquiry now and we will reply within 2 minutes!