Decision on Reporting by Custody Banks and Reconciliation of Voluntary Pension Fund Values

"RS Official Gazette", no. 26/2006
Pursuant to Article 64, paragraph 2 of the Law on Voluntary Pension Funds and Pension Schemes ("RS Official Gazette", no. 85/2005), the Governor of the National Bank of Serbia hereby issues the following D E C I S I O N ON THE FREQUENCY, MANNER AND STANDARDIZED FORM OF REPORTING BY CUSTODY BANKS AND THE MANNER OF RECONCILING THE DIFFERENCES BETWEEN CALCULATED VALUES AND CALCULATED RETURN OF A VOLUNTARY PENSION FUND

1. This decision regulates in further detail the frequency, manner and
   standardized form of reporting by custody banks, and the manner of reconciling differences between the net asset value and the value of the investment unit of a voluntary pension fund (hereinafter: fund) as calculated by the fund management company and the custody bank, and of reconciling differences between the return of the fund as calculated by the fund management company and the custody bank (hereinafter: differences in calculation).
2. Each business day, the custody bank shall control and confirm net
   asset value, value of the investment unit and return of the fund calculated by the fund management company, individually for each fund for which the custody bank provides services, or performs operations, and it shall report to the National Bank of Serbia thereon. The custody bank shall submit data on the values referred to in paragraph 1 hereof on each business day, in conformity with the guidelines of the National Bank of Serbia regulating electronic data submission.
3. With a view to reconciling its data on the net asset value, value of the
   investment unit and return of the fund with the data of the fund management company on these values and return, the custody bank shall obtain the data on the market value of securities constituting the fundís assets via financial information services. The custody bank can request from the fund management company to submit to it the data it cannot obtain in the manner referred to in paragraph 1 hereof, and evidence that substantiate such data. The custody bank shall calculate the data referred to herein in conformity with the decisions of the National Bank of Serbia governing the manner in which the fund management company calculates the net asset

2 value and the value of the investment unit of the fund, and the return of the fund.
4. The submission of the data referred to in Section 3, paragraph 2
hereof, and the manner of reconciling differences in calculation, shall be regulated by the custody bank and the fund management company in appropriate written procedures.
5. If it finds any differences in calculation, the custody bank shall be
required to immediately notify the fund management company thereof, in order to determine the reasons that led to such difference, that is, the reasons for the discrepancy, after which both custody bank and fund management company shall be required to check whether errors have occurred in any of the preceding calculations. In the event they have, the fund management company shall immediately notify fund members of these errors, and, in the case of a pension scheme, it shall notify the organizer as well, at the same time notifying them of the impact of errors on the calculation, and measures that have been taken and will be taken in order to rectify these errors. Fund members and pension scheme organizers shall be informed of these errors via the Internet page of the fund management company and at the time of the sending of the first next report on the individual account, or of the account statement.
6. The fund management company and the custody bank shall be
required to rectify any established errors on the same day of finding the difference in calculation, or the reason for the discrepancy. If it is not possible to rectify errors on the same day, the custody bank shall notify the National Bank of Serbia thereof, as well as of the reasons for the discrepancy.
7. This decision shall enter into force on the day following the day of its
publication in the ìRS Official Gazetteî, and shall be applied as of April 1, 2006. Dec. no. 30 G o v e r n o r March 24, 2006 of the National Bank of Serbia B e l g r a d e Radovan Jelaöić, sign.