The Single Resolution Mechanism has been operational in the European Union since 2016, when the Regulation of the European Parliament and of the Council on the Single Resolution Mechanism entered into force in full.
The resolution mechanism was established pursuant to Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 (Bank Recovery and Resolution Directive) on the recovery and resolution of credit institutions and investment firms This directive provides for common resolution tools and resolution powers available to the resolution authorities of each Member State, but leaves it in discretion of the resolution authorities of the Member States to apply these tools and use national financing arrangements for the support of the resolution procedures.
In Latvia, the provisions of this directive have been fully introduced in the Law on Recovery and Resolution of Credit Institutions and Investment Firms.
Resolution
- Law on Recovery of Activities and Resolution of Credit Institutions and Investment Firms
- The Financial and Capital Market Commission's regulations of 29 March 2022 No 37 Regulations on the information necessary for drawing up the resolution plan of an institution or financial corporation and the resolvability assessment of an institution or group (available in Latvian)
- The Financial and Capital Market Commission's regulations of 25 August 2020 No 139 Regulations on the determination of the circumstances in which an institution is considered to be failing or likely to fail (available in Latvian)
National Resolution Fund
- The Financial and Capital Market Commission's regulations of 31 March 2020 No 40 Regulations on payments of investment firms to the National Resolution Fund (available in Latvian)
Deposit Protection Scheme
- Deposit Guarantee Law
- The Financial and Capital Market Commission's regulations of 21 October 2020 No 195 Regulations on the preparation of the report on covered deposits and on the determination of adjustment coefficients applicable to payments to the Deposit Guarantee Fund (available in Latvian)
- The Financial and Capital Market Commission's regulations of 29 September 2020 No 180 Regulations on information to be provided to a depositor (available in Latvian)
- The Financial and Capital Market Commission's regulations of 4 August 2020 No 116 Regulations on the inclusion of payment liabilities of deposit-takers in the Deposit Guarantee Fund (available in Latvian)
Investment Protection System
- Investor Protection Law
- The Financial and Capital Market Commission's regulations of 8 December 2020 No 234 Regulations on the preparation of financial instrument portfolio reports of participants to the system (available in Latvian)
Insurance Protection Systems