Regulatory Alerts2024-09-03
Guidelines on Appropriate Protection Mechanisms Against the Risk of Issuers Failing to List Recently Issued Transferable Securities and Money Market Instruments on a Regulated Market
The Croatian Financial Services Supervisory Agency (Hanfa) issued these Guidelines to mandate pension companies to establish and apply appropriate protection mechanisms when investing in recently issued transferable securities and money market instruments that are not yet listed on a regulated market. The document requires pension companies to assess unlisted risk at each investment cycle stage and implement safeguards such as contractual penalties, prospectus obligations, management liability, bank guarantees, or repurchase rights to mitigate potential losses if issuers fail to list within the statutory one-year period. By outlining these flexible, risk-based safeguards rather than prescribing a rigid list, Hanfa ensures pension funds can tailor protection measures to specific investments while maintaining strict compliance with the Act on Mandatory Pension Funds.