Regulation on the Reporting of Individual Savings Pensions

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Based on Article 35, paragraph 1, sub-paragraph 1.1 of 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 5.3 of Law No. 04/L-101 and Law No. 04/L-168 on amendment and supplementation of Law 04/L-109 on the Pension Funds of Kosovo (Official Gazette of the Republic of Kosovo, No. 10/8 May 2012), the Board of the Central Bank of the Republic of Kosovo, in its meeting held on 31 August 2016, approved

REGULATION ON THE REPORTING OF THE KOSOVO SAVINGS PENSION FUND

Article 1 Purpose and Scope

1. The purpose of this Regulation is to determine the deadlines and reporting rules of the Kosovo Savings Pension Fund (KSPF) to the Central Bank of Kosovo (CBK) and to the Assembly of Kosovo.
2. This Regulation shall apply to the Kosovo Savings Pension Fund (KSPF).

Article 2 Definitions 2.1 All terms in this Regulation have the same meaning as the terms defined in Article 1 of Law No. 04/L-101 and Law No. 04/L-168 on amendment and supplementation of Law 04/L-109 on the Pension Funds of Kosovo (hereinafter: Law on Pension Funds) and/or as defined below for the purpose of this Regulation: a) "Audited annual financial statements" means financial statements including the balance sheet, income statement, cash flow statement, statement of changes in equity, supplementary notes and explanatory materials, which are an integral part of the financial statements in accordance with International Financial Reporting Standards. b) "Financial year" means the period from 1 January to 31 December of each year. c) "Open-End vehicles" means open-ended investment instruments. d) "Quarter" or "quarterly" means the period of three consecutive months starting on the first day of each financial year, except if the Kosovo Savings Pension Fund uses a different financial year, in which case the quarter ends on 31 March, 30 June, 30 September and 31 December of each year. e) "Reporting certificate" means the unique security certificate enabling fund reporting in the electronic system, verifying that institution data are encrypted and that upon import of data into the "Off-Site" regulatory reporting system (ORRS), funds and responsible persons assume responsibility that data are final and accurately reported. f) "ORRS" means the software system for collecting and processing data reported by financial institutions. g) "Reporting instructions" means the approved instructions for reporting of financial institutions to CBK, specifying reporting formats, detailed instructions for completing forms in accordance with international accounting standards (IAS) and CBK regulations, as well as other elements.

Article 3 General Requirements

1. KSPF must report based on the requirements set forth in the Law on Pension Funds and this Regulation, concerning its financial status, administration, and operations, either individually or consolidated. Based on this Regulation, KSPF must consolidate data from all activities into a single report.
2. Reports are prepared in formats and instructions determined by CBK, which may be amended periodically.
3. If the reporting date is not a working day in Kosovo, the reporting date shall be the first following working day.

Article 4 KSPF Report and Reporting Deadlines

1. KSPF must report to the Pension and Capital Market Supervision Division at CBK via ORRS, 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) Purchase and sale of financial instruments (F9); e) Net assets and redeemable shares (F14); f) Statistics - Balance sheet (F19); g) A list of all instruments by investments on the last day of the reported month and the preceding month, comparing their respective values; h) Supplementary notes and explanatory material for general changes (increase/decrease) in globally invested assets by asset managers compared to the preceding month;
2. KSPF must report to the Pension and Capital Market Supervision Division at CBK via ORRS, no later than twenty (20) days after the end of each quarter, the following quarterly reports: a) Income statement (F2); b) Statement of changes in net pension assets (F3); c) Financial instrument derivatives (F8); d) Income from financial instruments (F10); e) Payable and receivable accounts (F11); f) Investment expenses (F12); g) Operating expenses (F13). 2.1 KSPF must submit in physical form to the Assembly, CBK, and a copy to the Government of Kosovo, no later than twenty (20) days after the end of each quarter, these reporting forms: a) List of all pension instruments including information required for the monthly report listed in paragraph 1(a); b) Statement on sale and profit of pension instruments together with instrument identity, transaction date, purchase/sale price, and intermediary used; c) Details of changes in pension instrument values during the quarter; d) Statement presenting the number of contributors, those retiring, and pension instrument values on a quarterly basis; e) Statement on accepted contributions, changes in pension instrument values, and pensions paid during the quarter;
3. KSPF must report to the Pension and Capital Market Supervision Division at CBK via ORRS, no later than twenty (20) days after the end of each half-year, the following report: a) Cash flow statement (F4);
4. KSPF must report to the Pension and Capital Market Supervision Division at CBK via ORRS, no later than twenty (20) calendar days after the end of each calendar year, in addition to reports specified in paragraphs 1, 2 and 3, the following reports: a) Participant typology (F15); b) Liquidity gap (F16).

Article 5 Annual Report

1. KSPF must submit to CBK within four months after the end of the financial year, the annual report, together with the external auditor's opinion and management letter for the preceding financial year.
2. KSPF must submit to the Assembly of Kosovo, CBK, and a copy to the Government of Kosovo within five months after the end of the financial year, the annual report, together with the external auditor's opinion for the preceding financial year, containing the following information: a. List of pension instruments with valuation date as of the last day of the financial year, showing participation of pension instruments invested in specific asset classes. This report must also include investments in Government of Kosovo securities, as a percentage of the total contributions collected by KSPF for the preceding year. b. Statement with value and proportion of pension instruments invested in specific asset classes, including details of specific securities, valued at the end month of the annual period. c. In case instruments are invested in "Open-End Vehicles", basic information on Open-End Vehicles, so that assets can be aggregated systematically to show a general overview of each fund's exposure to different asset classes. d. Statement of taxes and expenses charged to KSPF during the financial year for pension instrument investments, including holder taxes and other taxes for financial services and transactions related to pension instrument investment. e. Statement justifying taxes charged on individual accounts during the financial year and determining the proposed tax program for the next financial year. f. Data on allocation of collected contributions and the extent to which contributions are equalized in individual accounts.

Article 6 Additional Reporting To fulfill supervisory responsibilities, CBK may request, as needed and appropriate, more frequent or additional and broader reporting formats as deemed necessary.

Article 7 KSPF Obligations

1. KSPF must submit reports within deadlines and formats determined by CBK.
2. Reports from KSPF under this Regulation not submitted via ORRS must be submitted in physical and electronic form.
3. The accompanying document for physical reports submitted to CBK must be stamped and signed by the person responsible for the unit handling report completion, and by the managing director or his authorized representative.

Article 8 Other Information

1. Members of the KSPF Board of Directors must submit to CBK by the last day of April each year, in the form prepared by CBK, their individual annual revenues and open instrument reports.
2. KSPF must submit to CBK a copy of the investment principles and directives within 30 days from the date of approval, amendment, or adjustment. KSPF must submit to CBK a copy of investment directives for asset managers within 15 days from issuance or any amendment.
3. KSPF will submit to CBK the approved risk management statement for managing pension instrument security.

Article 9 Implementation and Measures Violations of this Regulation shall be subject to measures provided in Article 33 of the Law on Pension Funds.

Article 10 Repeal Upon entry into force of this Regulation, Regulation No. 5 on Reporting of the Kosovo Savings Pension Fund dated 29 May 2014, and any other acts contrary to this Regulation, are repealed.

Article 11 Annex Annex 1 is an integral part of this Regulation.

Article 12 Entry into Force This Regulation enters into force on 15 September 2016. Chairman of the Board of the Central Bank of the Republic of Kosovo

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Prof. Dr. Bedri Peci

Annex 1 Pension and Capital Market Supervision Division First page and accompanying document Institution Name: Institution Code: Address: Institution Type: Reporting Period: Reporting Format (Frequency): Reporting Date: Audited: Yes/No Date and time of report upload: Report Designation: Reporting Forms: Code Form Name √ F01 Balance Sheet F02 Income Statement F03 Statement of Changes in Net Pension Assets F04 Cash Flow Statement F05 Deposits and Placements F06 Investment Inventory F07 Open-End Funds F08 Financial Instrument Derivatives F09 Purchase and Sale of Financial Instruments F10 Income from Financial Instruments F11 Payable and Receivable Accounts F12 Investment Expenses F13 Operating Expenses F14 Net Assets and Redeemable Shares F15 Participant Typology F16 Liquidity Gap F19 Statistics - Balance Sheet Declaration by the reporting officer, financial director, and responsible person for reporting. Through this declaration, we confirm that reports uploaded to ORRS are prepared in accordance with CBK requirements and reporting instructions. Reports clearly reflect fund conditions up to the information date. It is understood that any intentional misrepresentation in this report may result in civil or penal sanctions applied against the reporting officer, financial director and/or the reporting fund. Financial Director: Reporting Responsible Person: (signature) (signature)