Regulatory Alerts2021-07-12
Regulation on Permitted Investments and Additional Investment Restrictions of the Mandatory Pension Fund – Unofficial Consolidated Text (NN, No. 2/2020, 15/2020 and 24/2021)
The Croatian Financial Services Supervisory Agency (HANFA) issued this Regulation to detail permitted investments and additional restrictions for mandatory pension funds, specifying asset conditions, counterparty requirements, liquidity management protocols, and derivative usage rules. It mandates precise return comparisons against reference indices using 5-, 10-, and 15-year geometric averages, while enforcing strict liquidity assessments, stress testing, and quarterly portfolio reviews. Furthermore, the Regulation establishes comprehensive criteria for transferable securities, money market instruments, and financial derivatives, ensuring that all investments align with long-term hedging objectives, cost-effectiveness, and documented risk substitution models.