LogoRegulatory Alerts
2009-01-30

Decision on the Structure and Method of Calculating the Capital of a Voluntary Pension Fund Management Company

The Governor of the National Bank of Serbia issued this decision to define the capital structure and calculation methodology for voluntary pension fund management companies. The regulation mandates that capital comprises share capital, reserves, and undistributed profits, while deducting unrealized losses, uncovered losses, purchased own shares, and unpaid subscribed capital. Fund management companies are required to notify the National Bank of Serbia within five days if their capital falls below the dinar equivalent of EUR 1,000,000.

National Bank of Serbia logo

Serbia

National Bank of Serbia

Click to view thumbnail

"RS Official Gazette", no. 26/2006 and 3/2009 Pursuant to Article 7, paragraph 5 of the Law on Voluntary Pension Funds and Pension Schemes (“RS Official Gazette”, no. 85/2005), the Governor of the National Bank of Serbia hereby issues the following D E C I S I O N ON THE STRUCTURE AND METHOD OF CALCULATING THE CAPITAL OF A VOLUNTARY PENSION FUND MANAGEMENT COMPANY

  1. This decision sets out the structure and method of calculating the capital of a voluntary pension fund management company (hereinafter: fund management company).
  2. The structure of the capital of a fund management company (hereinafter: capital) comprises: – share capital, – issue premium, – legal reserves, – statutory and similar reserves, – 50% of the amount of revaluation reserves (excluding unrealized loss on securities), – undistributed profit from previous years, – unrealized loss on securities, as a deduction, – uncovered losses, as a deduction, – purchased own shares, as a deduction, – unpaid subscribed capital, as a deduction.
  3. The method of calculating the capital is presented in Appendix 1, enclosed herewith and integral thereto.
  4. The fund management company is obligated to notify the National Bank of Serbia of any capital decrease to an amount lower than the dinar equivalent value of EUR 1,000,000 by no later than five days from the day of such decrease.
  5. This decision shall enter into force one day after its publication in the “RS Official Gazette”, and shall be applied as of 1 April 2006. D. no. 27 Governor 24 March 2006 National Bank of Serbia B e l g r a d e Radovan Jelašić, sign.

2 Appendix 1 CALCULATION OF CAPITAL (in RSD thousand) No. Item Value

  1. Share capital
  2. Issue premium
  3. Legal reserves
  4. Statutory and similar reserves
  5. 50% of the amount of revaluation reserves (excluding unrealized loss on securities)
  6. Undistributed profit from previous years
  7. Total capital before deductions (1+2+3+4+5+6)
  8. Unrealized loss on securities
  9. Uncovered loss
  10. Purchased own shares
  11. Unpaid subscribed capital
  12. Total deductions (8+9+10+11)
  13. Capital (7-12)
  14. Dinar equivalent of EUR 1,000,000
  15. Difference (13-14)
Share