Regulatory Alerts2024-09-23
Official Position of HANFA Regarding Share Buyback Programs
The Croatian Financial Services Supervisory Agency (HANFA) issued this official position to clarify that listed securities issuers may simultaneously adopt and execute two separate share buyback programs managed by different regulated investment companies. The agency confirms that issuers operating outside the Market Abuse Regulation safe harbour must strictly comply with prohibitions on trading based on inside information and market manipulation by establishing internal mechanisms, such as Chinese walls and order-execution protocols. HANFA emphasizes that while volume limits under Delegated Regulation 2016/1052 are optional, issuers and their engaged brokers must ensure legitimate conduct, best execution for clients, and transparent market research to prevent significant price distortions.