Protection of investor interests

On 21 April 2004 the Council of the European Union and the European Parliament adopted Directive 2004/39/EC (Markets in Financial Instruments Directive or MiFID). The main objectives of Directive 2004/39/EC are to increase competition and consumer protection in investment services. Latvia completed transposition of the said directive into local legislation by 1 February 2008.

In order to fully comply with MiFID requirements JSC “Parex banka” has introduced several improvements in the way investment services are rendered. The said improvements will ensure better protection of investor interests and a higher standard for investment services received by the client.

All clients of JSC “Parex banka” according to their characteristics, investment experience and expertise, and their investment goals have been given one of tree possible statuses: private client, professional client or eligible counterparty. Depending on the status given, a specific level of protection is applied to the client. Additional measures aimed at protection of the client include steps taken by JSC “Parex banka” to ensure that the particular investment service is suitable for clients’ interests.

JSC “Parex banka” has prepared and introduced Policy of Prevention of Conflicts of Interests. The main purpose of the said policy is to prevent possible conflicts of interest which may arise in the course of performance of investment services.

When engaging in financial instrument transactions at the behest of the client JSC “Parex banka” observes Policy of Execution of Orders in the field of Rendering Investment Services. The client is acquainted with the said policy before investment services are received by the client, and the client has to certify in writing its consent to the terms and conditions of the said policy. The client is provided with comprehensive information about JSC “Parex banka”, financial instrument transactions and risks involved.

Information about supplier of investment services

General Overview of Risks Related to Financial Instruments

Information on Safe Custody of Financial Instruments and Funds of the Client

Review of the Policy of Prevention of Conflicts of Interests