Regulatory Alerts2021-07-12
Regulation on Permitted Investments and Additional Investment Restrictions for Voluntary Pension Funds – Unofficial Consolidated Text (NN, No. 103/2014 and 2/2020)
The Croatian Financial Services Supervisory Agency (HANFA) issued this Regulation to detail permitted investments and additional restrictions for voluntary pension funds, defining regulated markets, transferable securities, money market instruments, liquidity management protocols, and financial derivatives. It mandates pension management companies to continuously assess portfolio liquidity, conduct stress tests, document verification procedures for third-country markets, and ensure derivatives are used exclusively for hedging or efficient portfolio management with fully covered positions. Furthermore, it establishes precise criteria for counterparty credit quality, special purpose vehicles, and the calculation of investment limits and exposure to prevent excessive risk while preserving fund value.