Regulatory Alerts2006-10-04
Ordinance No. 34 of 04.10.2006 on Conditions for Hedging Transactions to Reduce Investment Risk of Additional Pension and Payment Funds
The Commission for Financial Supervision issues Ordinance No. 34 to regulate hedging transactions by pension insurance companies for additional pension and payment funds to reduce investment risk. The ordinance mandates strict pre-trade risk analysis, counterparty creditworthiness requirements, and daily valuation of market and default risks. It further establishes specific limits on risk exposure relative to net assets and requires quarterly reporting on the effectiveness and impact of these hedging strategies.
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