A Customer who is provided with investment services according to the Law on the Financial Instruments Market of the Republic of Latvia, is granted one of the following customer statuses*:
- private customer
- professional customer – a person or an entity stipulated by Law or specified in the Customer's application, who meets two of the following criteria:
- a Customer that has executed large-scale transactions on the respective market, i.e. at least 10 transactions per quarter in the last four quarters
- a Customer whose investments, including financial funds and financial instruments, have a proprietary value that exceeds EUR 500,000
- a Customer that has been working in the financial sector for at least 1 year in a position requiring knowledge about transactions and services that the Customer is planning to execute or to receive as a Professional customer
- equal partner
Customer status determines the degree of protection of Customer interests when trading in financial instruments.
An Equal partner has the lowest degree of protection of interests and transactions between the Bank and Equal partner are deemed as transactions between equal parties. Transactions with an Equal partner do not require the Bank to assess compliance of the transactions with Customer interests, including investing in a specific instrument and the Customer's ability to assess risks when investing in a specific financial instrument. That is because Customers of this status must have experience and knowledge about financial instruments and be able to assess and bear the risks of any loss related to transactions of a particular type.
When providing investment services and ancillary (non-core) investment services to a Professional customer, the Bank is not required to provide information about the Bank and its services, or expenses related to rendering such services. Likewise, the Bank is neither required to analyse the conformity of the services to be rendered to Professional customers with their interests, nor inform them about the risks related to specific transactions because it is assumed that Customers of this status must be able to assess the particular risks and conformity with their interests independently. When executing orders from Customers of this status, the Bank will first assess the scope and speed of execution of the order, the reliability of settlements and the price of a transaction.
A Private customer is assigned the highest degree of protection of Customer interests. The Bank must provide as much information as possible about transactions and risks related thereof, as well as disclose as clearly as possible information about all expenses or commissions related to such transactions. Moreover, the Bank is required to assess information given in the Customer questionnaire and the conformity of each financial instrument with the interests of the Customer. In case a transaction is made with an instrument that has been assessed as inappropriate for the interests of the Customer, the Bank must warn the Customer that a transaction with such an instrument may result in losses for the Customer that the Customer is not able to assess properly due to a lack of knowledge or experience. The best result for a Private customer when dealing in financial instruments according to the Policy of the Bank is determined based on the best price and minimum expenses for execution of such a transaction.
* It is possible to request a change in Customer status in order to increase or decrease the degree of protection of Customer interests according to effectual regulatory enactments.
Login to Internet Banking