Latvia’s Ministry of Finance, in cooperation with Latvijas Banka, has submitted for public consultation draft amendments to the Alternative Investment Funds and Their Managers Law and the Investment Management Companies Law to align the national framework with European Union requirements affecting fund operations, supervision, liquidity risk management and cross-border service provision. The proposals implement Directive (EU) 2024/927, which amends Directives 2011/61/EU and 2009/65/EC in areas including delegation arrangements, liquidity risk management, supervisory reporting, depositary and custodian bank services, and lending by alternative investment funds. For alternative investment fund managers and funds, the drafts refine requirements for managers, tighten standards for delegation to third parties, seek a more level playing field for depositary service providers while improving cross-border access to those services, optimise supervisory data collection, and set requirements for the use of liquidity management tools within the member state. Parallel changes for investment management companies cover operational and delegation requirements, asset safekeeping, supervisory reporting and liquidity risk management. Both draft laws are available for review via Latvia’s Draft Legislation Portal as part of the public consultation process.

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