Regulation on Approval for Establishing and Managing UCITS Funds, and Amending Their Prospectus and Rules - Unofficial Consolidated Text (NN Nos. 3/17 & 41/17)

UNOFFICIAL CONSOLIDATED TEXT NN 3/17 of 11 January 2017. NN 41/17 of 27 April 2017 (in force from 01 May 2017). CROATIAN FINANCIAL SERVICES AGENCY Pursuant to Article 193(7), Article 194(3), Article 197(2) and Article 243(4) of the Open-Ended Investment Funds with Public Offer Act (»Narodne novine« No. 44/2016, hereinafter: the Act), the Croatian Financial Services Agency (hereinafter: the Agency) at a meeting of its Administrative Board held on 5 January 2017 adopted the REGULATION ON THE ISSUANCE OF APPROVAL FOR THE ESTABLISHMENT AND MANAGEMENT OF A UCITS FUND, AS WELL AS AMENDMENTS TO THE PROSPECTUS AND RULES OF A UCITS FUND INTRODUCTORY PROVISIONS Article 1. This Regulation prescribes the procedure and conditions for establishing and managing a UCITS fund, amendments to the prospectus of a UCITS fund, as well as handling immaterial changes to the prospectus of a UCITS fund and the procedure and conditions for amending the mandatory content of the rules of a UCITS fund. ESTABLISHMENT AND MANAGEMENT OF A UCITS FUND Article 2. (1) The management company, together with the application for approval to establish and manage a UCITS fund, in addition to the documentation and data specified in Article 243(2) of the Act, shall submit: a) proof of maintenance of the regulatory capital of the management company in accordance with Articles 19 to 21 of the Act, b) consent of the supervisory board and the depositary to the rules of the UCITS fund, in accordance with Article 195(3) of the Act, c) for a depositary under Article 216(3)(1) and (3) of the Act – a certified copy of the operating permit for the depositary issued by the Croatian National Bank, d) for a depositary under Article 216(3)(2) of the Act – an operating permit for the depositary issued by the competent authority of the member state, e) for a depositary under Article 216(3)(2) and (3) of the Act – a certified copy of an extract from the court or other relevant register of the member state, or third country, for the founder of the branch, f) a fee schedule for the performance of depositary services, if the fee schedule does not form an integral part of the depositary services agreement, g) a declaration by the depositary that there are no legal impediments within the meaning of Article 229(4) and (5) of the Act, h) a certificate from the depositary demonstrating that the deposit manager meets the conditions set out in Article 216(5) of the Act regarding relevant experience, i) a certified copy of the positive audit opinion on the depositary's financial statements for the last three business years, j) additional documentation upon request by the Agency. (2) A management company from another member state intending to establish and manage a UCITS fund in the Republic of Croatia in accordance with Article 133 of the Act, together with its application for approval to establish and manage a UCITS fund, in addition to the documentation and data specified in Article 243(2) of the Act and the documentation from paragraph 1 of this article, shall additionally include: a) an extract from the court or other relevant register for the management company, b) an operating permit for the management company issued by the competent authority of the home member state of the management company, c) a certificate on the maintenance of capital of the management company, d) other documentation upon request by the Agency. (3) All foreign documents from this article must be translated by an authorized court interpreter into Croatian, and the foreign documents under paragraph 1(d) and (e) of this article, as well as the documents under paragraph 2(a) and (b), must also be certified in accordance with domestic law and international regulations (Apostille – Hague Convention of 5 October 1961 on Abolishing the Requirement of Legalisation for Foreign Public Documents). MATERIAL AMENDMENTS TO THE PROSPECTUS OF A UCITS FUND Article 3. (1) Together with the application for approval of material amendments to the prospectus of a UCITS fund under Article 192(1) of the Act, the management company shall also attach a board decision on the adoption of prospectus amendments, indicating which parts of the prospectus are amended and how, along with a declaration that the remaining parts remain unchanged. (2) The management company shall, in the notice on material amendments to the prospectus published on its website in accordance with Article 193(2) of the Act, as well as in the notice delivered to investors in accordance with Article 193(3) of the Act, specify which are the material amendments to the prospectus, the date on which the material amendments to the Prospectus enter into force in accordance with Article 193(6) of the Act, and draw attention to the investors' right under Article 193(4) of the Act. (3) The management company shall deliver the notice on material amendments to the prospectus under Article 193(3) of the Act to investors by post or on another appropriate durable medium in accordance with Article 112 of the Act. IMMATERIAL AMENDMENTS TO THE PROSPECTUS OF A UCITS FUND Article 4. (1) The management company shall, together with the updated prospectus published in accordance with Article 194(1) of the Act, simultaneously publish a notice that the prospectus has been updated and what the immaterial amendments to the prospectus consist of. (2) The management company shall submit the updated prospectus and the accompanying notice specifying which data have been updated in terms of immaterial amendments to the Agency electronically, in accordance with Article 194(2) of the Act. AMENDMENTS TO THE MANDATORY CONTENT OF THE RULES OF A UCITS FUND Article 5. Together with the application for approval of amendments to the mandatory content of the rules of a UCITS fund under Article 197 of the Act, the management company shall also attach a board decision on the adoption of rule amendments, indicating which parts of the rules are amended and how, along with a declaration that the remaining parts remain unchanged. FINAL PROVISIONS Article 6. (1) In addition to the documentation under this Regulation, the Agency may during the application processing procedure request other documentation it deems necessary for deciding on the issuance of approval, including information prescribed by the law governing the prevention of money laundering and financing of terrorism. (2) Management companies may submit the documentation under Article 2(1), Article 3(1) and Article 5 of this Regulation in the manner specified by, and in accordance with, the Technical Instruction for Using the Web Form Entry Service and Electronic Submission of Documentation and the Instructions for Completing Web Forms for Management Companies. (3) A management company shall be deemed to have submitted the documentation under Article 2(1), Article 3(1) and Article 5 of this Regulation at the moment when the documentation is recorded on the server for sending such documentation. Article 7. This Regulation shall enter into force on the eighth day following its publication in »Narodne novine«. Class: 011-02/17-02/01 Reference No.: 326-01-440-17-1 Zagreb, 5 January 2017. Deputy Chairman of the Administrative Board Mario Radaković, (signed)