/ Investment portfolios / Protection of investors’ interests
Protection of investors’ interests
EU Directive 2004/39/EC of 21 April 2004 relating to the Markets in Financial Instruments (MiFID) requirements was fully introduced in Latvia on 1 February 2008.
Directive 2014/65/EU of the European Parliament and of the Council (MiFID II) came into force with additional requirements aimed at improving the efficiency of the financial markets, transparency and strengthening the protection of investors on 3 January 2018.
Taking into account the legislative requirements the “CBL Asset Management” IPAS has introduced several improvements in its operation in order to ensure a higher level of protection for investors and to enhance the procedure for providing investment services.
To all clients of the “CBL Asset Management” IPAS, considering their characteristics as well as experience and knowledge in transactions with financial instruments and the purpose thereof, one of three possible statuses: private client, professional client or eligible counterparty is assigned. Clients are provided with a corresponding level of protection, depending on the assigned status. Protection measures, inter alia, include assessment of suitability and compliance of investment services with interests of the particular client.
In order to identify and prevent possible conflicts of interest, which may arise during the course of provision of investment services, AS “Citadele banka” has adopted and introduced the Policy on Prevention of Conflicts of Interest in the Investment Services (Policy), which is mandatory on all companies in the Citadele group, incl. "CBL Asset Management" IPAS. Taking into account the principles set out in the Policy, “CBL Asset Management” IPAS has developed and introduced its Rules for the prevention of conflicts of interest.
When carrying out transactions with financial instruments on behalf of its clients, the “CBL Asset Management” IPAS is governed by its Transaction Execution Policy (Annex No. 1). Clients are introduced with the mentioned policy prior to receiving investment services and they must approve their consent with it. Clients are also provided with a wide range of information on “CBL Asset Management” IPAS and on transactions with financial instruments and risks related with them.
Procedure for Reviewing Suggestions and Complaints