Investor protection scheme

As from 1 January 2002, the Investor Protection Law has been in force in Latvia providing a system of protection for investors. In cases when the providers of investment services (banks, investment management companies and investment firms) are incapable of fulfilling their contractual obligations, investors have the right to receive compensation. Failure to meet obligations is compensated at 90% of the irrevocably lost value of financial instruments, or of losses incurred by the non-performance of investment services.

As from 2008, compensation at 90% of the irrevocably lost value of financial instruments, or of losses incurred by the non-performance of investment services was guaranteed for an investor, but not more than EUR 20 000 (LVL 14 056).

Additional information about the investor protection scheme and the Guarantee Fund is available on Financial and Capital Market Commission of Latvia web site.