Decision on Additional Documentation for Operating Licence Applications under Articles 17 and 19 of Regulation (EU) No 909/2014

1 Based on Articles 16 and 17 of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories, amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (hereinafter: Regulation (EU) No 909/2014), Article 38 of Commission Delegated Regulation (EU) 2017/392 of 11 November 2016 supplementing Regulation (EU) No 909/2014, Article 4(1)(3), Article 5(10), and Article 14(3) of the Act on Implementation of Regulation (EU) No 909/2014 (Official Gazette No 44/16), and Article 15(1) of the Act on the Croatian Financial Services Supervisory Agency (Official Gazette Nos 140/05 and 12/12), the Croatian Financial Services Supervisory Agency, at its Management Board meeting held on 28 July 2017, adopted the DECISION on additional documentation attached to the data submitted by central securities depositories – applicants in connection with applications for the grant of an operating licence under Article 17 of Regulation (EU) No 909/2014 or in connection with applications for the extension of an operating licence under Article 19 of Regulation (EU) No 909/2014 Article 1. (1) For the purposes of this Decision, certain terms have the following meanings:

1. Regulation (EU) No 909/2014 is Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories, amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012.
2. Commission Delegated Regulation (EU) 2017/392 is Commission Delegated Regulation (EU) 2017/392 of 11 November 2016 supplementing Regulation (EU) No 909/2014.
3. Commission Implementing Regulation (EU) 2017/394 is Commission Implementing Regulation (EU) 2017/394 of 11 November 2016 laying down implementing technical standards with regard to standard forms, templates and procedures for the grant of operating licences, review and assessment of central securities depositories, cooperation between home Member State authorities and host Member State authorities, consultation with bodies involved in the grant of operating licences for the provision of ancillary banking-type services, access involving central securities depositories, and with regard to the format of registers that central securities depositories must maintain in accordance with Regulation (EU) No 909/2014.
4. The Act is the Act on Implementation of Regulation (EU) No 909/2014.
5. The Agency is the Croatian Financial Services Supervisory Agency, whose competences and area of work are defined by the Act on the Croatian Financial Services Supervisory Agency, this Act, and other laws.
6. Central securities depositories – applicants is a central securities depository with its registered office in the Republic of Croatia that, pursuant to Articles 16, 17 or 19 of Regulation (EU) No 909/2014, is obliged to submit an application for the grant of an operating licence or an application for the extension of an operating licence to the Agency.
7. The Form is the Application for Granting Operating Licence to a Central Securities Depository under Article 17 of Regulation (EU) No 909/2014, the content of which is further specified in Commission Delegated Regulation (EU) 2017/392 and Commission Implementing Regulation (EU) 2017/394. (2) Other terms used in this Decision have the same meaning as the terms used in Regulation (EU) No 909/2014, Commission Delegated Regulation (EU) 2017/392, Commission Implementing Regulation (EU) 2017/394 and the Act. Article 2. (1) In accordance with Article 16 of Regulation (EU) No 909/2014, each legal entity falling within the definition of a central securities depository must obtain an operating licence from the competent authority of the Member State in which it has its registered office before commencing its activities. In accordance with Article 17 of Regulation (EU) No 909/2014, central securities depositories – applicants submit an application for the grant of an operating licence to the Agency, whereby in connection with such application the central securities depository – applicant is at least obliged to submit the data specified in Articles 4 to 38 of Commission Delegated Regulation (EU) 2017/392, in the format prescribed by Article 1 of Commission Implementing Regulation (EU) 2017/394 and the tables in Annex 1 to Commission Implementing Regulation (EU) 2017/394. (2) The documentation submitted in connection with the application referred to in paragraph 1 of this Article is approved by the management of the central securities depository – applicant, who bear full responsibility for its truthfulness, accuracy and completeness. Where the central securities depository – applicant has a supervisory board within the meaning of the law governing the establishment and organisation of commercial companies, this obligation applies accordingly to executive directors and members of the supervisory board of the central securities depository – applicant. (3) Paragraphs 1 and 2 of this Article apply accordingly to central securities depositories – applicants that submit an application for the extension and separation of activities and services under Article 19 of Regulation (EU) No 909/2014. Article 3. (1) In accordance with Article 38 of Commission Delegated Regulation (EU) 2017/392, the Agency is authorised to request all additional information from the central securities depository – applicant that is necessary to assess whether the central securities depository – applicant meets, at the time of granting the operating licence, the requirements of Regulation (EU) No 909/2014 and the relevant delegated and implementing acts adopted on the basis of Regulation (EU) No 909/2014. (2) For the purposes of paragraph 1 of this Article, the central securities depository – applicant shall, together with each document it is obliged to submit to the Agency in connection with the application under Article 2(1) of this Decision, also submit a short summary of that document in which it concisely, clearly and precisely states how the document achieves compliance with a specific provision of Regulation (EU) No 909/2014 and the relevant delegated and implementing acts adopted on the basis of Regulation (EU) No 909/2014: a) which key articles of Regulation (EU) No 909/2014 and the relevant delegated and implementing acts adopted on the basis of Regulation (EU) No 909/2014 are covered by that document, b) how those documents fulfil the conditions set out in those articles, c) exactly which parts of the document in question fulfil the condition or obligation set out in those articles. (3) If, at the time of submitting the application under Article 2(1) of this Decision, the central securities depository – applicant has determined for a specific document that it is not possible at that time to satisfy certain conditions of Regulation (EU) No 909/2014 and the relevant delegated and implementing acts adopted on the basis of Regulation (EU) No 909/2014, the central securities depository – applicant shall state: a) which document such impossibility relates to, b) which provisions of Regulation (EU) No 909/2014 and the relevant delegated and implementing acts adopted on the basis of Regulation (EU) No 909/2014 it relates to, c) the reasons why compliance at that time is not possible, d) how compliance will be achieved, and e) by when an updated final version of the document is expected to be submitted. (4) The prescribed period under paragraph 3(e) may not exceed the period within which the Agency is obliged to assess the completeness of the application under paragraph 1 of this Article, in accordance with Article 17(2) of Regulation (EU) No 909/2014. (5) The summaries under paragraphs 2 and 3 of this Article are also approved by the management of the central securities depository – applicant, who bear full responsibility for their truthfulness, accuracy and completeness. Where the central securities depository – applicant has a supervisory board within the meaning of the law governing the establishment and organisation of commercial companies, this obligation applies accordingly to executive directors and members of the supervisory board of the central securities depository – applicant. (6) In accordance with Article 19(2) of Regulation (EU) No 909/2014, the grant of a licence for extension and separation of activities and services follows the procedure established in Article 17 of Regulation (EU) No 909/2014, and Article 38 of Commission Delegated Regulation (EU) 2017/392 applies accordingly. In this regard, Articles 2 to 5 of this Decision apply accordingly to central securities depositories – applicants that submit an application for the extension and separation of activities and services under Article 19 of Regulation (EU) No 909/2014. Article 4. The data referred to in Article 3 of this Decision are submitted by central securities depositories – applicants as part of Table 2, Section H “Additional Information” of the Form (Article 38 of Commission Delegated Regulation (EU) 2017/392), Annex 1 to Commission Implementing Regulation (EU) 2017/394. Article 5. The documentation under Articles 2 and 3 of this Decision, as well as the Form, are submitted to the Agency by post, addressed to the sector of the Agency supervising the central securities depository – applicant, and in electronic form, to the email address csdr.licence@hanfa.hr. Article 6. The Agency is authorised to request additional evidence from the central securities depository – applicant confirming the truthfulness, accuracy and completeness of the submitted data, including certificates and confirmations from other competent domestic or foreign authorities. Article 7. (1) This Decision shall be published on the Agency’s website. (2) This Decision enters into force on the day of its adoption. Annex:

• Form and templates for submitting applications for the grant of operating licences by central securities depositories – applicants in accordance with Commission Implementing Regulation (EU) 2017/394 CLASS: 011-02/17-01/03 REGISTRATION NO.: 326-01-770-771-17-1 Zagreb, 28 July 2017. DEPUTY CHAIRMAN OF THE MANAGEMENT BOARD Mario Radaković