Regulation on the Calculation, Amount, and Collection of Fees Payable to the Croatian Financial Services Supervisory Agency for 2019

(Official Gazette, No. 112/18 and 18/19) Unofficial Consolidated Text

General Provisions

Article 1

This Regulation governs the calculation and amount of fees, as well as the method and execution of fee collection, which are charged by the Croatian Financial Services Supervisory Agency (hereinafter: Hanfa) for the year 2019.

Obligated Parties

Article 2

1. The obligated parties for the payment of fees are:

1. Supervised entities of Hanfa under Article 203 of the Insurance Act (Official Gazette, No. 30/15 and 112/18, hereinafter: ZOS), except for supervised entities under Article 203, paragraph 5, points 4, 5, 6, 7, 9, 10, and 11 of ZOS, and entities under Article 66 and Article 17, paragraph 1, points 4 and 5, and paragraph 3, points 3 and 4 of ZOS;
2. Exchanges under Article 284 of the Capital Market Act (Official Gazette, No. 65/18, hereinafter: ZTK);
3. Central counterparty clearing houses under Article 628 of ZTK;
4. Central counterparties under Article 536, paragraph 1, point 1 of ZTK, which have received operational approval from Hanfa;
5. Issuers under Article 459, paragraph 1 of ZTK;
6. Persons authorized to provide investment services and perform investment activities in accordance with Article 6 of ZTK (credit institutions, investment firms, investment fund management companies, and market intermediaries);
7. Management companies for mandatory pension funds under Article 5 and Article 198, paragraph 5, point 1 of the Mandatory Pension Funds Act (Official Gazette, No. 19/14, 93/15, 64/18, and 115/18);
8. Management companies for voluntary pension funds under Article 9 and Article 275, paragraph 5, points 1, 2, and 4 of the Voluntary Pension Funds Act (Official Gazette, No. 19/14, 29/18, and 115/18);
9. Supervised entities of Hanfa under Article 346, paragraph 5 of the Open-Ended Investment Funds with Public Offering Act (Official Gazette, No. 44/16, hereinafter: ZOIFJP);
10. Supervised entities of Hanfa under Article 232, paragraph 6 of the Alternative Investment Funds Act (Official Gazette, No. 21/18, hereinafter: ZAIF);
11. Management companies for funds established by special laws, over whose operations Hanfa is authorized to conduct supervision;
12. Leasing companies under Article 3, paragraph 1 of the Leasing Act (Official Gazette, No. 141/13, hereinafter: ZOL), leasing companies from third countries, and leasing companies from Member States under Article 46, paragraph 2 of ZOL that perform leasing activities within the Republic of Croatia through a branch in accordance with Article 48 of ZOL, as well as leasing companies from Member States under Article 46, paragraph 1 of ZOL that perform leasing activities within the Republic of Croatia through a branch;
13. Factoring companies under Article 20, paragraph 1 of the Factoring Act (Official Gazette, No. 94/14, 85/15, and 41/16, hereinafter: ZOF), factoring companies from third countries, and factoring companies from other Member States under Article 59, paragraph 2 of ZOF that perform factoring activities within the Republic of Croatia through a branch in accordance with Article 61 of ZOF, as well as factoring companies from other Member States under Article 59, paragraph 1 of ZOF that perform factoring activities within the Republic of Croatia through a branch;
14. Pension insurance companies under Article 5 of the Pension Insurance Companies Act (Official Gazette, No. 22/14, 29/18, and 115/18);
15. Life annuity purchase companies under Article 3 of the Life Annuity or Pension Purchase Act (Official Gazette, No. 153/13).

2. Obligated parties for the payment of fees to Hanfa shall pay fees within the timeframes established by this Regulation.

Article 3

1. Fees are revenue of Hanfa and shall be paid into Hanfa's account: HR91 2390 0011 1003 29373.
2. The fee must be paid in full to Hanfa's account without deduction for bank commissions and other costs.
3. Fees shall be paid to Hanfa monthly, within 15 days from the last day of the accounting month, unless otherwise provided for specific obligated parties in this Regulation.
4. Hanfa may, by its decision, exempt obligated parties from the obligation to pay fees for a certain period.

Insurance and Reinsurance Companies

Article 4

1. Insurance and reinsurance companies under Article 17, paragraph 1, point 1, and paragraph 3, point 1 of ZOS are required to pay Hanfa a fee of 0.2‰ (per mille) calculated on the value of the total assets of the insurance and reinsurance company.
2. The fee under paragraph 1 of this Article is calculated based on data regarding the value of total assets shown in the annual financial statements of the insurance and reinsurance company (Statement of Financial Position) as of the last day of the previous year.
3. Insurance and reinsurance companies calculate the fee using the following formula: Total asset value multiplied by 0.2‰ (per mille) and divided by 12 months.
4. The calculated fee under paragraph 3 of this Article is the monthly amount of the obligation to pay the fee to Hanfa, and insurance and reinsurance companies are required to pay it by the 15th day of the month for the previous month.
5. Insurance companies from other Member States that perform insurance activities in the Republic of Croatia based on the right of establishment under Article 66 of ZOS are required to pay an annual flat-rate fee of 20,000.00 kuna, within three months from the end of the year for which the fee is calculated.
6. An insurance company from a third country under Article 17, paragraph 1, point 5, and paragraph 3, point 4 of ZOS that performs insurance activities in the Republic of Croatia through establishment or performs reinsurance activities through freedom to provide services or establishment is required to pay Hanfa an annual flat-rate fee of 20,000.00 kuna, within three months from the day the year for which the fee is calculated ends.
7. An insurance and reinsurance company from the Swiss Confederation under Article 17, paragraph 1, point 4, and paragraph 3, point 3 of ZOS that performs insurance activities in the Republic of Croatia through establishment or performs reinsurance activities through freedom to provide services or establishment is required to pay Hanfa an annual flat-rate fee of 20,000.00 kuna, within three months from the end of the year for which the fee is calculated.

Insurance and Reinsurance Distributors: Insurance Agency Companies, Insurance Agency Sole Proprietors, Insurance Broker Sole Proprietors and/or Reinsurance, Insurance Brokerage Companies and/or Reinsurance, and All Other Legal Entities with Permission to Perform Insurance and/or Reinsurance Distribution Activities

Article 5

1. Insurance agency companies, insurance agency sole proprietors, insurance broker sole proprietors and/or reinsurance, insurance brokerage companies and/or reinsurance, credit institutions, investment firms, and all other legal entities with permission to perform distribution activities in insurance and/or reinsurance under Article 2, paragraph 1, point 1 of this Regulation are required to pay Hanfa a fee of 0.8‰ (per mille) calculated on the realized revenue or invoiced amount of insurance or reinsurance commission, which the aforementioned legal and natural persons charge for providing insurance and/or reinsurance distribution services.

2. The fee under paragraph 1 of this Article for insurance agency companies and insurance brokerage companies in insurance and reinsurance is calculated based on data regarding realized revenue from provided insurance and/or reinsurance distribution services, according to the annual financial report for the previous year shown in the Income Statement of the insurance agency or insurance brokerage company in insurance and/or reinsurance, under the position BUSINESS REVENUES, item number 002, position code I.1.

3. The fee under paragraph 1 of this Article for insurance agency sole proprietors, insurance broker sole proprietors, credit institutions, investment firms, and all legal entities with permission to perform distribution activities in insurance and/or reinsurance, except for insurance agency companies and insurance brokerage companies in insurance and/or reinsurance under paragraph 2 of this Article, is calculated based on the realized invoiced amount of commission under insurance contracts, according to the annual statistical report for the previous year shown in form SP-1 Statistical Report on Invoiced Amount of Commission/Fee in column 5 Total Amount of Invoiced Insurance or Reinsurance Commission.

4. Obligated parties for the fee under paragraph 1 of this Article calculate the fee using the following calculation: Realized annual revenue from commission under paragraph 2 or paragraph 3 of this Article multiplied by 0.8‰ (per mille).

5. The calculated fee under paragraph 4 of this Article is the annual amount of the obligation to pay the fee to Hanfa.

6. Obligated parties for the fee under paragraph 1 of this Article shall pay the fee to Hanfa within 15 days from the deadline for submitting the annual financial or statistical report.

7. Exceptionally, obligated parties for the fee under paragraph 1 of this Article are exempt from paying the fee to Hanfa if it amounts to less than 10 kuna.

Exchanges, Central Counterparty Clearing Houses, and Central Counterparties

Article 6

1. The Exchange under Article 2, paragraph 1, point 2 of this Regulation is required to pay Hanfa a fee of 0.003‰ (per mille) calculated on the total market capitalization of all financial instruments listed on the regulated market it manages, except for debt securities for which it is required to pay Hanfa a fee of 0.0001‰ (per mille) calculated on the total market capitalization of debt securities listed on the regulated market it manages.
2. If the Exchange manages a Multilateral Trading Facility (hereinafter: MTF), it is required to pay Hanfa a fee of 0.003‰ (per mille) calculated on the total market capitalization of all financial instruments admitted to trading on the MTF, except for debt securities for which it is required to pay Hanfa a fee of 0.0001‰ (per mille) calculated on the total market capitalization of debt securities admitted to trading on the MTF.
3. If financial instruments listed on the regulated market and/or admitted to trading on the MTF do not have market capitalization, the Exchange is required to pay Hanfa a fee of 0.003‰ (per mille) on the total annual turnover of these financial instruments.
4. The Central Counterparty Clearing House under Article 2, paragraph 1, point 3 of this Regulation is required to pay Hanfa a fee of 0.005‰ (per mille) calculated on the market capitalization of all financial instruments entered in the central securities depository or central register of financial instruments, except for debt securities for which it is required to pay Hanfa a fee of 0.0005‰ (per mille) calculated on the market capitalization of all debt securities entered in the central securities depository or central register of financial instruments.
5. The Central Counterparty under Article 2, paragraph 1, point 5 of this Regulation is required to pay Hanfa a fee of 0.7‰ (per mille) calculated on the total realized revenue from clearing activities within the meaning of Article 535, paragraph 1 of ZTK and total realized financial revenue from investing own capital, except for revenue realized from managing collateral of participants in the clearing system (members of the central counterparty), and 0.5‰ (per mille) on the amount of the value of collateral of participants in the clearing system managed by the central counterparty.
6. The fee under paragraph 5 of this Article is calculated using the following formula: multiply revenue from clearing activities within the meaning of Article 535, paragraph 1 of ZTK and revenue from investing own capital by 0.7‰ (per mille) and add the amount of collateral value multiplied by 0.5‰ (per mille).
7. The Exchange, Central Counterparty Clearing House, and Central Counterparty shall pay the calculated fee to Hanfa from revenue funds.
8. Market capitalization is calculated on the last day of each quarter of the business year and divided by 4 (four).
9. The Exchange, Central Counterparty Clearing House, and Central Counterparty shall pay the fee to Hanfa quarterly, within 15 days from the end of the quarter for which the fee is calculated.

Issuers

Article 7

1. Share issuers under Article 2, paragraph 1, point 5 of this Regulation are required to pay Hanfa a fee of 0.035‰ (per mille) calculated on revenue up to the amount of 5 billion kuna, increased by a fee of 0.045‰ (per mille) calculated on the portion of revenue above 5 billion kuna up to 10 billion kuna, and increased by a fee of 0.055‰ (per mille) calculated on the portion of revenue above 10 billion kuna.
2. Bond issuers under Article 2, paragraph 1, point 5 of this Regulation who are not share issuers under Article 2, paragraph 1, point 5 of this Regulation are required to pay Hanfa a fee of 0.025‰ (per mille) calculated on revenue.
3. Exceptionally from paragraphs 1 and 2 of this Article, issuers under Article 2, paragraph 1, point 5 of this Regulation who have realized a loss for the period are required to pay Hanfa a fee of 0.015‰ (per mille) calculated on revenue.
4. The maximum fee that issuers under paragraph 3 of this Article are required to pay Hanfa is 10,000.00 kuna.
5. Exceptionally from paragraph 3 of this Article, issuers under Article 2, paragraph 1, point 5 of this Regulation who have realized a loss for the period equal to or greater than 30% of revenue are required to pay Hanfa the minimum fee.
6. The minimum fee that issuers under Article 2, paragraph 1, point 5 of this Regulation are required to pay Hanfa is 5,000.00 kuna.
7. Issuers under Article 2, paragraph 1, point 5 of this Regulation who are parent companies are required to pay Hanfa a fee calculated on revenue reduced by the revenue of dependent companies that are issuers under Article 2, paragraph 1, point 5 of this Regulation.
8. Fees under paragraphs 1, 2, 3, 5, and 7 of this Article are calculated based on data regarding total revenue shown in the audited consolidated annual financial statements of issuers under Article 2, paragraph 1, point 5 of this Regulation (Income Statement) for the period of the previous business year. Revenue of dependent companies under paragraph 7 of this Article is the total revenue shown in the audited consolidated annual financial statements of these issuers (Income Statement) for the period of the previous business year. Loss for the period under paragraphs 3 and 5 of this Article refers to the loss for the period shown in the audited consolidated annual financial statements of issuers under Article 2, paragraph 1, point 5 of this Regulation (Income Statement) for the period of the previous business year.
9. The fee under paragraphs 1 to 7 of this Article is the annual amount of the obligation to pay the fee to Hanfa, which is paid quarterly in equal amounts.
10. The quarterly amount of the fee under paragraph 9 of this Article is calculated by dividing the fee under paragraphs 1 to 7 of this Article by 4 (four).
11. Issuers under Article 2, paragraph 1, point 5 of this Regulation are required to pay the quarterly amount of the fee under paragraph 10 of this Article to Hanfa within 30 days from the end of the quarter.

Persons Authorized to Provide Investment Services and Perform Investment Activities

Article 8

1. Credit institutions under Article 6, paragraph 1, point 4 of ZTK are required to pay Hanfa a fee of 0.3‰ (per mille) calculated on revenue from receiving and transmitting orders regarding one or more financial instruments and revenue from executing orders for the client's account; a fee of 0.7‰ (per mille) calculated on all other revenue from services and activities under Article 5 of ZTK except for revenue from portfolio management and revenue from safekeeping and administration of financial instruments for the client's account and custody, as well as trading for own account; a fee of 0.014‰ (per mille) calculated on the amount of value of financial instruments acquired for own account by the credit institution, and 0.005‰ (per mille) on the amount of value of portfolio and custody on the reporting date up to 10 billion kuna, and on the amount of value of portfolio and custody on the reporting date greater than 10 billion kuna, a fee of 0.001‰ (per mille) is calculated.
2. A credit institution from another Member State that provides investment services and performs activities under Article 5, paragraphs 1 and 2 of ZTK in the Republic of Croatia through a branch is required to pay Hanfa a supervisory fee of 0.7‰ (per mille) on the total realized revenue from investment services and performed activities in the Republic of Croatia.
3. A credit institution with its seat in a third country that provides investment services and performs activities under Article 5, paragraphs 1 and 2 of ZTK in the Republic of Croatia through a branch is required to pay Hanfa a supervisory fee of 0.7‰ (per mille) on the total realized revenue from investment services and performed activities in the Republic of Croatia.
4. Investment firms under Article 6, paragraph 1, point 1 of ZTK are required to pay Hanfa a fee of 0.3‰ (per mille) calculated on revenue from receiving and transmitting orders regarding one or more financial instruments and revenue from executing orders for the client's account; a fee of 0.7‰ (per mille) calculated on all other revenue from services and activities under Article 5 of ZTK except for revenue from portfolio management and revenue from safekeeping and administration of financial instruments for the client's account and custody, as well as trading for own account; a fee of 0.014‰ (per mille) calculated on the amount of value of financial instruments acquired for own account by the investment firm, and 0.005‰ (per mille) on the amount of value of portfolio and custody on the reporting date up to 10 billion kuna, and on the amount of value of portfolio and custody on the reporting date greater than 10 billion kuna, a fee of 0.001‰ (per mille) is calculated.
5. An investment firm with its seat in another Member State that provides investment services and performs activities under Article 5, paragraphs 1 and 2 of ZTK in the Republic of Croatia through a branch is required to pay Hanfa a supervisory fee of 0.3‰ (per mille) on the total realized revenue from investment services and performed activities in the Republic of Croatia.
6. An investment firm with its seat in a third country that provides investment services and performs activities under Article 5, paragraphs 1 and 2 of ZTK in the Republic of Croatia through a branch is required to pay Hanfa a supervisory fee of 0.3‰ (per mille) on the total realized revenue from investment services and performed activities in the Republic of Croatia.
7. Investment fund management companies under Article 6, paragraph 2, point 2 of ZTK are required to pay Hanfa a fee of 0.7‰ (per mille) calculated on realized revenue from investment advice, and 0.005‰ (per mille) on the amount of value of portfolio on the reporting date up to 10 billion kuna, and on the amount of value of portfolio on the reporting date greater than 10 billion kuna, a fee of 0.001‰ (per mille) is calculated.
8. Market intermediaries under Article 6, paragraph 2, point 3 of ZTK are required to pay Hanfa a fee of 0.3‰ (per mille) calculated on revenue from receiving and transmitting orders regarding one or more financial instruments, and a fee of 0.7‰ (per mille) calculated on realized revenue from investment advice.
9. Realized revenue under paragraphs 1, 4, 7, and 8 of this Article refers to revenue from performing investment services and activities in accordance with the provisions of Article 5 of ZTK realized for each quarter of the current year (shown in form PR_Report on Revenues and Expenses from Providing Investment Services and Performing Investment Activities, which is an integral part of the Supervisory Report for Legal Entities Authorized to Provide Investment Services and Perform Investment Activities).
10. Value of custody and portfolio under paragraphs 1, 4, and 7 of this Article refers to client assets linked to the portfolio management agreement and client assets that the legal entity may manage by client order, linked to the agreement for ancillary services under Article 5, paragraph 2, point 1 of ZTK on the reporting date (shown in form US_Report on Management of Client Assets, which is an integral part of the Supervisory Report for Legal Entities Authorized to Provide Investment Services and Perform Investment Activities).
11. Amount of value of financial instruments acquired for own account by the credit institution under paragraph 1 and investment firm under paragraph 4 refers to the book value of positions of financial instruments (Article 3, point 24 of ZTK) in the company's own portfolio classified according to IFRS 9, valued on the reporting date in accordance with applied accounting policies (shown in form VP_Report on Financial Instruments in the Company's Own Portfolio, which is an integral part of the Supervisory Report for Legal Entities Authorized to Provide Investment Services and Perform Investment Activities).
12. The fee under paragraph 1 of this Article is calculated using the following formula: Multiply revenue from receiving and transmitting orders regarding one or more financial instruments and revenue from executing orders for the client's account by 0.3‰ (per mille), add the amount of all other revenue from services and activities under Article 5 of ZTK except for revenue from portfolio management and revenue from safekeeping and administration of financial instruments for the client's account and custody, as well as revenue from trading for own account multiplied by 0.7‰ (per mille); add the amount of value of financial instruments acquired for own account multiplied by 0.014‰ (per mille); and add the amount of value of portfolio and custody up to 10 billion kuna multiplied by 0.005‰ (per mille) and the amount of value of portfolio and custody on the reporting date greater than 10 billion kuna multiplied by 0.001‰ (per mille).
13. The fee under paragraphs 2 and 3 of this Article is calculated using the following formula: Multiply total realized revenue from investment services and performed activities in the Republic of Croatia by 0.7‰ (per mille).
14. The fee under paragraph 4 of this Article is calculated using the following formula: Multiply revenue from receiving and transmitting orders regarding one or more financial instruments and revenue from executing orders for the client's account by 0.3‰ (per mille), add the amount of all other revenue from services and activities under Article 5 of ZTK except for revenue from portfolio management and revenue from safekeeping and administration of financial instruments for the client's account and custody, as well as revenue from trading for own account multiplied by 0.7‰; add the amount of value of financial instruments acquired for own account multiplied by 0.014‰ (per mille); and add the amount of value of portfolio and custody up to 10 billion kuna multiplied by 0.005‰ (per mille) and the amount of value of portfolio and custody on the reporting date greater than 10 billion kuna multiplied by 0.001‰ (per mille).
15. The fee under paragraphs 5 and 6 of this Article is calculated using the following formula: Multiply total realized revenue from investment services and performed activities in the Republic of Croatia by 0.3‰ (per mille).
16. The fee under paragraph 7 of this Article is calculated using the following formula: Multiply revenue from investment advice by 0.7‰ (per mille), and add the amount of value of portfolio up to 10 billion kuna multiplied by 0.005‰ (per mille) and the amount of value of portfolio on the reporting date greater than 10 billion kuna multiplied by 0.001‰ (per mille).
17. The fee under paragraph 8 of this Article is calculated using the following...