Regulatory Alerts2025-01-01
Regulation on Fees and Costs Charged by the Management Company (Official Gazette No. 79/22 and 133/25 – Unofficial Consolidated Text)
The Croatian Financial Services Supervisory Agency issued this Regulation to prescribe the fees and costs that management companies may charge directly from UCITS fund assets or directly to investors, establishing precise calculation methods and charging conditions for management, entry/exit, and performance fees. It mandates that all applicable charges be explicitly defined in the fund prospectus, requires daily calculation and monthly accumulation of management fees, and sets strict alignment rules for performance-linked fees to ensure proportional returns and reasonable incentives. By replacing the 2020 framework, the Regulation standardizes fee models—including hurdle rates, high-water marks, and fulcrum fees—while guaranteeing annual maximum materialization frequency and equal treatment among fund shareholders.