Latvia

1. EEA AIFMs

Under the Law on Alternative Investment Funds and their Managers 2013 (“LAIFM”), AIFMs may operate either as registered or authorised managers. AIFMs registered in their EEA home State are only entitled to market units or shares to professional investors upon receipt of permission from the Latvian regulator, the Financial and Capital Market Commission (“FCMC”). As LAIFM does not provide an opportunity for registered AIFMs to operate through a branch, marketing may be carried out directly.

Authorised AIFMs may market units or shares of EEA and Non-EEA AIFs to professional and assessed retail investors as soon as the FCMC has received notification by the EEA home State’s competent authority that the relevant passport notification has been sent, along with copies of those documents required for authorisation under AIFMD.

However, authorised AIFMs are only allowed to provide the full scope of services if they manage an AIF which is registered in Latvia. An authorised AIFM may commence respective services directly or through a branch upon receipt of a notification from the home State’s competent authority, along with the documents required for authorisation under AIFMD and an attestation on authorisation in their home State by the FCMC.

2. Third country AIFMs

AIFMs domiciled in Non-EEA jurisdictions wishing to manage an AIF registered in Latvia, or market units or shares of EEA and Non-EEA AIFs in Latvia, must apply for an authorisation from the FCMC. However, certain AIFMs may be exempt from requiring certain documents for authorisation, due to the specific legislative requirements of their domicile jurisdiction. In order to obtain an authorisation, the AIFM must have a representative in Latvia who has the required skills and competencies, as well as the funds, to provide the services.

3. Fees

AIFMs are not subject to any application fees when operating under the passporting regime. AIFMs shall pay a fee for fund registration (EUR 1,422) and making amendments to documents submitted for such registration (EUR 426).

Authorised and registered AIFMs must pay an annual supervision fee in the amount of 0.033% from the average quarterly asset value of funds operated but no less than EUR 3,557 or EUR 900 per year respectively.

Additionally, AIFMs shall pay a single supervision fee for marketing units or shares of the fund in Latvia in the amount of EUR 1,209 per each fund (EEA or third country funds). If operating through a branch, the annual fee for branch supervision is calculated as a percentage (1%) of the gross income generated by the Latvian branch per quarter, but no less than EUR 2,134.