Latvia Forex License

HOW TO OBTAIN FOREX LICENSE IN LATVIA

In Latvia, the forex companies are considered as investment companies and conduct their activities on the basis of a license for providing investment services, which identifies the services that company allowed to provide, as well as concerning which financial instruments.

The right to obtain license have certain legal entities – residents of Latvia or other EU member states, as well as branches of investment companies of other countries that have relevant license for conducting brokerage activities.

The Financial Supervision Commission is a central regulator of the securities market, financial and investment services.

Legislation

The main legal act regulating activities in the equity market, financial and investment services, is the Financial Instruments Market Act.

Requirements for forex license holder

Shareholders

Shareholders owning 10% or more stock, must have deep confirmed knowledge of the chosen of investment services direction features and considerable investment company management experience.

In addition, the close relationship of shareholder with any other entity must not interfere with the effective participation of the shareholder in the regular supervision of the activities of the company.

The Commission has the right to decide on the sufficiency of the experience and knowledge of shareholders, as well as their ability to participate in the supervision of the company’s activities on the basis of research about the shareholders of the company.

Shareholders should also have sufficient financial resources, which do not cause doubt about the integrity of their origin.

Paid Capital

The minimal paid authorized capital must be at least EUR 125,000 (STP) and EUR 730,000 (Market maker).
Requirements to the authorized capital size is the same as in Malta, and almost the same as in Cyprus, except that a market maker broker in Cyprus has to increase the authorized capital to the level of EUR 1,000,000.00.
Intangible assets cannot be used for authorized capital forming.

In addition, the forex company is required to always maintain equity capital at a sufficient level, determined by the Commission. The Commission can require forex company shareholders to increase capital up to a certain level within a determined time at any moment.

Staff requirements for obtaining forex license

The company must have at least two directors – Latvia residents during the whole time of the license, which are approved by the Commission.

In addition, a prerequisite is that directors and key employees of the Company must have the diplomas (degrees) in the relevant field and at least 3 or 5 years of experience in the investment business (depending on the license type) over the past 5-8 years.
At the same time directors of the company must have an impeccable reputation and at least three year experience on the same position in an investment service company.

The Administration checks the company’s personnel according to the requirements and approves them on the position.

Office

The company, that obtained forex license in Latvia must have a complete real office in Latvia.

Subsidiaries

A company with a forex license is not allowed to have subsidiaries, except those that provide similar to the parent company investment activity.

License territory. Is it allowed to work in EU with the Latvian forex license?

Obtaining a forex license in Latvia, the company is allowed to provide its activity in other EU countries after certification.
In order to use advantage of operating in other European countries you have to notify the Commission about your intentions (indicate the country where you want to provide activity, type of activity and describe organizational structure of the company).

The Commission must send given information to the competent authority of the country where the company wills to operate. The competent authority of the host country is obliged to allow the company to operate on its territory without any additional checks.

Marketing

The company that obtained a forex license is responsible for clear, accurate and not misleading advertising information.

Terms 

No less than 3 months from the submission of full documentation to the Commission.

SBSB offers qualified assistanse in obtaining brokerage licenses in Latvia and other jurisdictions.

Please check all the list below on page.

If any help in obtaining brokerage license need, please, feel free to contact our specialists via phone-call (numbers required can be found in contact list on the internet page) or by submitting a form located on the left side of the page.

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