The First Rule For Safe Investments

• Published date: 18 August 2025
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Technology, Financial Services, Fund Management/ REITs, Corporate and Company Law, Fin Tech
• Law Firm: Tegos
• Author: Laura Ērk'ķe

In the last 5-7 years, the topic of investment has not been "off the scene" and has become a regular cause for discussion, podcasts, recordings and opinion pieces. And this time will be no exception.

Currently, every conscious and sensible resident in Latvia has heard something about how cool and good it is to invest, and how it will help in old age or with any major purchases or unexpected expenses. The next level of investment awareness already requires people to know that investments should be diversified (the old story about not putting all your eggs in one basket). Namely, at a minimum: cash in a deposit or savings account, then a medium/long-term (at least 5-10 years) investment that can be converted into cash relatively quickly and, preferably, cheaply when needed, and lastly, an investment in pension plans that can be accessed only when you reach retirement age. Finally, those who have already got into the excitement of investing know the intricacies of fees, management charges and tax returns. But let's be real - most of us simply want to multiply our hard-earned money in the easiest and most profitable way possible.

And the investment opportunities are endless! From investments where the "entry ticket to the investment club" is at least EUR 50,000 to EUR 1 investment per month. You can invest in funds, ETFs, buy shares or a fractioned share, buy life insurance, choose broker services or rely on artificial intelligence tools. However, in any of these choices, one question is essential: how reliable is your chosen provider? And it's not about whether you can count on guaranteed returns and capital growth. (Because any supervised investment service provider is forced to say, whether you like it or not, that no, you can't count on that). The question is whether the money you invest will be invested at all and you will ever see it again, or whether it will be your [forced] voluntary donation to the scammers.

Relatively recently, a number of investment platforms licensed in Latvia (LANDE, INDEMO, VIAINVEST, NECTARO, DEBITUM INVESTMENTS and TWINO) announced the signing of a joint memorandum with the aim of promoting transparency and credibility in the alternative finance market.¹ One of the reasons for this is the increasing, aggressive activity of unlicensed "investment service providers" in the Latvian market. This article has been written in support of that commitment and to promote financial literacy in investment.

The Latvian financial sector has...