Transactions with securities

One of the most profitable types of fund placement is investments in various types of securities. Swedbank offers the company to choose the most suitable investment strategy - purchase of bonds, short-term promissory notes or commercial papers or purchase of shares, or investments in various funds or use of a possibility offered by Swedbank to build an investment portfolio most suitable for your company.

Investor protection scheme
Investor protection scheme is a set of measures put in place for the protection of the interests of the investors, for ensuring financial resources necessary for such protection and for the payment of compensation under the Investor Protection Law.

Who is entitled to compensation?
The right to receive a compensation is granted to the investor – a person who transfers money or financial instruments to the scheme participant for the delivery of investment services. A scheme participant is a legal person that has received a licence from the Financial and Capital Market Commission to provide investment services.

Which cases are eligible for compensation?
Compensation is payable on irreversible loss of financial instruments or damage caused by non-executed investment services.
An irreversible loss of financial instruments is a fact to be established by the Financial and Capital Market Commission having decided that the data certifying the investor's title to the financial instruments and stored by the computer system of a scheme participant or included in any other type of accounting, have been irreversibly destroyed or damaged due to an act or omission or criminal offence and the scheme participant refuses to restore such data on the basis of the documents presented by the investor;

A non-executed investment service is an investment service accepted for delivery by a scheme participant but fully or partially not carried out by that participant, whereby the investor has suffered loss, or financial instruments have irreversibly been lost as a result thereof.

What is the amount of the compensation?
Irrespective of the date of accepting the investment service by the scheme member for execution, the guaranteed compensation to one depositor is 90% of the irreversibly lost financial instruments or the loss resulting from the non-executed investment service but not more than EUR 20,000 translated into Latvian lats at the Latvian Central Bank’s exchange rate in force on the day on which the decision to satisfy the compensation application is taken.

Compensation is not disbursed to:

• A person for transactions having resulted in a judgement of conviction in a criminal matter for money laundering;
• Scheme participants, insurance companies, holding companies or other investors who informed the respective authorities of the fact that they are professional investors;
• Persons party to the same group of companies as the scheme participant;
• Pension funds;
• State and local governments;
• Board and Council members of a scheme participant, heads of audit commissions and members of such commissions, heads of internal audit services and members of such services, other employees of the scheme participant who have been authorised to carry out or been responsible for planning, management and control of the activities of the scheme participant, as well as to persons who have directly or indirectly acquired more than five per cent of the capital of a scheme participant;
• Persons responsible for the audit of the accounting documents of scheme participants specified by law;
• Persons who are relatives of the first degree of kinship, or spouses of the persons referred to in Clause 6 and 7;
• Persons who act on behalf of the persons referred to in Clause 7;
• Persons regarding whom the Financial and Capital Market Commission has established that, on the basis of special provisions of a contract concluded individually, they have received high interest rates or financial concessions, or have caused or have taken advantage of circumstances which have resulted in financial difficulties or have contributed to the deterioration in the financial situation of a scheme participant.

How to apply for compensation?
Compensation is paid only to the investors who have submitted an application to the Financial and Capital Market Commission stating an irreversible loss of financial instruments or damage caused by a non-executed investment service.

An application for the receipt of compensation must be submitted within a one-year as of the moment when the investor has become aware of the fact that the scheme participant has not met its obligations but no later than within five years as of the date of the default on the respective obligations.