Regulation on Reporting of Supplementary Pension Funds

BANKA QENDRORE E REPUBLIKËS SË KOSOVËS CENTRALNA BANKA REPUBLIKE KOSOVO CENTRAL BANK OF THE REPUBLIC OF KOSOVO Pursuant to Article 35, paragraph 1, sub-paragraph 1.1 of the Law No. 03 / L-209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, no. 77/16 August 2010) and Article 15.7 and 22.7 of the Law No. 04 / L-101 on Kosovo Pension Funds (Official Gazette of the Republic of Kosovo, No. 10/8 in May 2012), the Board of the Central Bank of the Republic of Kosovo in the meeting held on November 24, 2016 approved the following: REGULATION ON REPORTING OF SUPPLEMENTARY PENSION FUNDS Article 1 Purpose and Scope

1. The purpose of this Regulation is to define the terms and rules for reporting of Supplementary Pension Funds to the CBK.
2. This Regulation applies to supplementary pension funds. Article 2 Definitions
3. All terms used in this Regulation are as defined in Article 1 of the Law No. 04/L-101 on Pension Funds in Kosovo and the Law No.04/L-168 on amending and supplementing the Law 04 / L-101 on Kosovo Pension Funds (hereafter: the Law on Pension Funds) and / or as further defined herein for the purpose of this Regulation: a) “Supplementary Pension Funds” means the Supplementary Employer Pension Funds and Supplementary Individual Pension; b) “Audited annual financial statements” means financial statements as balance sheet, income statement, cash flow statement, changes in equity statement , additional notes and explanatory materials that are part of the financial statements in accordance with International Accounting Standards. c) “Financial Year”, means the period from 1 January to 31 December of any year. d) “Open-End vehicles” means open investment instruments. e) “Quarter” or “quarterly” means that period of any consecutive three (3) months beginning on the first day of every financial year unless the Supplementary Pension Fund of Kosovo uses different financial year. A quarter period ends every 31st of March, 30th of June, 30th of September and 31st of December of any year.

f) “Certificate of reporting” means the unique security certificate which enables the reporting of funds in the electronic system, verifying that the institution data are encrypted, and that the moment the data are imported into the regulatory system of reporting (RRS), the funds and responsible persons take responsibility that the data reported are final and correct. g) “Regulatory Reporting System for Off-site Supervision (RRS)” means the software system for collection and processing of data reported or the CBK system in which financial institutions report. h) “Statement of investment principles” means the investment policy and investment development goals adopted by the pension entity for the investment of pension funds, which must be in accordance with the law and regulations of the CBK for pensions or investment guidelines defined by pension entity and applied by their asset managers/holders. i) “Investment directives” means orders and instructions made by the pension entity to the manager(s) or holder (s) of funds specifying the terms, conditions and manner of investing pension assets in accordance with the statement of investment principles. j) “Reporting guidelines” means the guidelines approved for reporting of financial institutions to the CBK with specified reporting forms, detailed instructions on filling out the forms in accordance with the International Accounting Standards (IAS) and the CBK regulations, as well as other elements. k) “Risk management Statement” means a document through which are set standards and minimum requirements for risk assessment and management of operational and investment risk. Article 3 General requirements

1. Every Supplementary Pension Fund should submit to the CBK, reports that deal with its financial position, administration and operations, either consolidated or individually at the CBK request. Based on this regulation, the Fund will consolidate data of all of its branches into a single report.
2. Reports are prepared only in the format and instructions as determined by the CBK.
3. If the reporting date is not a business day in Kosovo, the reporting date will be the next business day. Article 4 Reports of funds and reporting deadlines
4. Supplementary Pension Fund shall report to the CBK Division of Pension Supervision and Securities Market, no later than fifteen (15) days after the end of each month, the following monthly reports: a) Balance Sheet (F1); b) Deposits and placements (F5); c) Investment Inventory (F6);

d) d) Purchase and sale of financial instruments (F9); e) Net assets and redeemable shares (F14); f) Statistics - Balance sheet (F19); g) A list of all pension assets on the last day of the month by the Fund administration and affiliation. h) Additional notes and explanatory material on general changes, increase / decrease in assets invested in global market by asset managers and financial institutions operating in Kosovo, compared to the previous month. 2. 1. Supplementary Pension Fund shall report to the CBK Division of Pension Supervision and Securities Market, no later than twenty (20) days after each quarter-end, the following quarterly reports: a) Income statement (F2); b) Statement on changes in net pension assets (F3); c) Financial instruments derivatives (F8); d) Financial instruments income (F10); e) Accounts receivable and payable (F11); f) Investment expenses (F12); g) Operating expenses (F13); 2. Supplementary Pension Fund shall report to the CBK Division of Pension Supervision and Securities Market, no later than twenty (20) days after the end of each semester, the following report:

• Cash Flow Statement (F4);

3. Supplementary Pension Fund shall report to the Division of Pension Supervision and Securities Market in CBK, no later than twenty (20) calendar days after the end of each calendar year, in addition to the reports specified in paragraphs 1, 2 and 3 of this article also the following reports: a) Typology of Participation (F15); b) Liquidity gap (F16);

Article 5 Annual Report

1. Along with the external auditor's opinion and management letter for the previous financial year, the Supplementary Pension Fund within 4 months after the end of the financial year must submit to the CBK an annual report, which contains the following: a) a list of pension assets with the evaluation date of the last day of financial year, indicating the participation of pension funds invested in different classes of assets. This report should include investments in securities of the Government of Kosovo; b) statement of value and proportion of pension assets invested in specific classes of assets, including details of specific securities, with the date of the last annual period; c) when the funds are invested in "Open-End Vehicles", basic information on the Open-End Vehicles tools, so that assets can be collected by being systematically analysed in order to show an overview of the exposure of each fund on the various classes of assets; d) statement of fees and expenses charged to Supplementary Pension Funds during the financial year for investment of pension assets, including Custodian fees and other fees for services and financial transactions related to the investment of pension assets; e) the statement justifying fees imposed on the individual account during the financial year and setting the proposed tax program for the next financial year. Article 6 Additional Reporting In order to fulfil its supervisory responsibilities, the CBK may require, as deemed necessary and appropriate, most frequent reporting or additional reporting forms and broadly expressed reports varying from the situation. Article 7 Liabilities of Supplementary Pension Fund
2. Supplementary Pension Fund shall submit reports on terms, time and format prescribed by the CBK.
3. Reports from the Supplementary Pension Fund, under this Regulation shall be sent electronically through the RRS.
4. The report’s explanatory form (Appendix 1) must be delivered in physical form to the CBK, and shall be stamped and signed by the Managing Director and the person responsible for the unit that deals with the completion of reports.

Article 8 Additional information

1. Supplementary Pension Fund shall submit to the CBK a copy of the statement of investment principles and investment directives within 30 days from the date of its approval, modification or adaptation.
2. Supplementary Pension Fund shall submit to the CBK the risk management declaration adopted to manage the safety of pension funds. Article 9 Implementation and measures Violations to this Regulation shall be subject to the measures provided for in Article 32 of the Law on Pension Funds. Article 10 Repeal With the entry into force of this Regulation shall be repealed Rule 23 on reports and other information required to be offered by the Pension Funds and Pension Providers of October 23,

Article 11 Appendix Part of this Regulation is also Appendix 1. Article 12 Entry into force This Regulation shall enter into force fifteen days after its adoption. Chairman of the Board of the Central Bank of the Republic of Kosovo Bedri Peci.

Appendix 1 BANKA QENDRORE E REPUBLIKËS SË KOSOVËS CENTRALNA BANKA REPUBLIKE KOSOVO CENTRAL BANK OF THE REPUBLIC OF KOSOVO Division of Pension Supervision and Securities Market First sheet and accompanying paper Name of the institution: Code of the institution: Address: Type of institution: Reporting period: Reporting Form (frequency): Reporting date: Audited: No Date and time of loading report: Name of the report: Reporting Forms: Code Name of Form √ F01 Balance sheet F02 Income statement F03 Statement of changes in net pension assets F04 Statement of Cash Flows F05 Deposits and placements F06 Investment inventory F07 Open Investment Funds F08 Derivatives of financial instruments F09 Purchase and sale of financial instruments F10 Income from financial instruments F11 Payable and receivable accounts F12 Investment costs F13 Operative expenses F14 Net assets and redeemable shares F15 Typology of participants F16 Liquidity gap F19 Statistics - Balance Sheet

Declaration of the Managing Director and the person responsible for reporting Hereby declare that reports loaded to RRS are prepared in compliance with the requirements of the CBK and reporting instructions. The reports clearly reflect the conditions of the Fund up to date of submission of report. We are aware that any deliberately falsified information offered in this report may result in civil or criminal penalties do be apply against the officer responsible for reporting, the managing director as well as /or to the reporting Fund. Managing Director: The person responsible for reporting: (signature) (signature)