Regulation on the Regular Contributions of Members, Asset Management and Financial Reporting of the Investor Protection Fund (Official Gazette Nos. 66/19, 132/20 and 142/22 – Unofficial Consolidated Text)

Croatian Financial Services Agency, 10000 Zagreb, Franje Račkoga 6, P.O. Box 164, Croatia t: 01 6173 200, f: 01 4811 507, e: info@hanfa.hr, OIB: 49376181407, MB: 02016419, w: www.hanfa PRAVILNIK (REGULATION) ON THE REGULAR CONTRIBUTIONS OF MEMBERS, ASSET MANAGEMENT AND FINANCIAL REPORTING OF THE INVESTOR PROTECTION FUND (Official Gazette, No. 66/19, 132/20 and 142/22 – Unofficial Consolidated Text)

General Provisions Article 1. This Regulation prescribes: – the calculation, method and deadlines for payment of the regular contribution that members are obliged to pay into the Fund, – the method of managing, recording and reporting by Hanfa on the Fund's assets, and – the content and structure of the Fund's financial reports and the method of their submission to Hanfa.

Definitions Article 2. The terms used in this Regulation have the following meanings:

1. Act means the Capital Market Act (Official Gazette Nos. 65/18 and 17/20).
2. Hanfa means the Croatian Financial Services Agency, whose competences and scope of work are prescribed by the Act on the Croatian Financial Services Agency (Official Gazette Nos. 140/05 and 12/12) and the Act.
3. Fund means the Investor Protection Fund, whose establishment and management are prescribed by Articles 254 to 283 of the Act.
4. Fund member means a member of the Fund as defined in Article 255 of the Act.
5. Fund operator means a legal entity that has received approval from Hanfa for the establishment and management of the Fund, or Hanfa itself if it establishes and manages the Fund.
6. Base means the revenue earned by a Fund member in the preceding quarter by providing a specific investment service or performing an investment activity under Article 5 of the Act, with quarters calculated calendar-wise starting from the beginning of the calendar year.
7. Active client means a Fund member's client for whose account the Fund member has executed at least one transaction with one or more financial instruments in the preceding quarter, with quarters calculated calendar-wise starting from the beginning of the calendar year.

Calculation of Regular Contribution Article 3. (1) The calculation method and amount of the regular contribution are based on the type, scope and complexity of investment services and activities under Article 5 of the Act, as well as auxiliary services provided and performed by a Fund member. (2) The regular contribution of a Fund member consists of the sum of two separate parts: (a) the part calculated based on the Base and (b) the part calculated based on the number of Active clients.

Part Calculated Based on Base Article 4. (1) The part of the regular contribution calculated based on the Base for each Fund member consists of the sum of individual calculations prescribed in paragraphs 2, 3 and 4 of this Article, such that for each service and activity the Base is multiplied by the prescribed rate. (2) For each of the investment services and activities prescribed in Article 5 paragraph 1 points 1, 2, 6 and 7 of the Act, a rate of 1% of the Base amount applies. (3) For the investment service prescribed in Article 5 paragraph 1 point 4 of the Act, a rate of 1.5% of the Base amount applies. (4) For auxiliary services prescribed in Article 5 paragraph 2 point 1 of the Act, a rate of 2% of the Base amount applies.

Part Calculated Based on Number of Active Clients (Official Gazette No. 142/22) Article 5. A Fund member is obliged to pay an amount of 0.66 EUR for each individual Active client in a given quarter.

Rules of the Fund Operator Article 6. The Fund operator may, with prior approval from Hanfa, reduce the rates prescribed in Article 4 of this Regulation, as well as the amount payable for an Active client prescribed in Article 5 of this Regulation, if justified by Fund members' revenues and provided it does not hinder the regular functioning and purpose of the Fund.

Deadlines for Calculation and Payment of Regular Contribution Article 7. (1) The calculation of a Fund member's regular contribution is performed after the expiration of the quarter for which the regular contribution is calculated. (2) For the purpose of calculating the regular contribution, Fund members are obliged to provide the Fund operator with data on the number of Active clients, in the manner and within deadlines prescribed by the Fund operator's rules, while data on Fund members' revenues for each quarter are collected by the Fund operator from Hanfa. (3) The Fund operator submits the calculation of the regular contribution obligation to a Fund member within 10 days from the expiration of the deadline for submitting supervisory reports for each quarter for which the regular contribution is paid, as prescribed by the regulation on supervisory reports for legal entities authorized to provide investment and auxiliary services and perform investment activities. (4) A Fund member pays the regular contribution amount into the Fund no later than within 10 days from the date of receiving the obligation calculation submitted by the Fund operator. (5) The method of paying the regular contribution by Fund members will be prescribed by the Fund operator's rules.

Management of Fund Assets Article 8. The Fund operator is obliged to manage the Fund's assets in a safe and profitable manner, taking into account risk diversification and market trends, so as to preserve the Fund's value and liquidity.

Recording and Reporting by Hanfa on Fund Assets (Official Gazette No. 142/22) Article 9. (1) The Fund operator is obliged to maintain up-to-date business documentation and other administrative and/or business records on the management of Fund assets, in a manner that allows verification at any time of how they are managed and their status. (2) The Fund operator is obliged to submit a quarterly report on the number of members and total value of the Fund's assets to Hanfa on Form FZU (Annex I of this Regulation) within 20 days from the end of the quarter, all in accordance with Hanfa's Instructions. (3) Exceptionally from paragraph 2 of this Article, the Fund operator is obliged to submit a report upon Hanfa's specific request.

Financial Reports of the Fund Article 10. (1) The Fund's annual and semi-annual financial reports consist of: – Statement of Financial Position, – Statement of Comprehensive Income, – Statement of Cash Flows, – Notes to the Financial Reports. (2) The Fund operator is obliged to maintain accounting books, prepare accounting documents, value assets and liabilities, and prepare financial reports in accordance with the Act and the Accounting Act, respecting accounting and financial standards and principles, as well as general accounting assumptions. (3) When preparing the Statement of Cash Flows from paragraph 1 of this Article, the Fund operator may use either the direct or indirect method. (4) In addition to the reports from paragraph 1 of this Article, Hanfa may request additional data, information and explanations for certain items in the annual and semi-annual financial reports from the Fund operator.

Content and Structure of Financial Reports Article 11. (1) The Fund operator is obliged to prepare the semi-annual and annual financial reports mentioned in Article 10 paragraph 1 items 1 to 3 of this Regulation, in accordance with the content and structure prescribed by forms in Annex II of this Regulation and Hanfa's technical instruction. The content and structure of semi-annual and annual financial reports are identical. (2) Notes to the financial reports from Article 10 paragraph 1 item 4 of this Regulation are prepared in accordance with financial reporting standards so as to provide: – additional and supplementary information not presented in the statement of financial position, statement of comprehensive income and statement of cash flows, and – information on additional data not presented elsewhere in the financial reports but necessary for understanding any constituent part of the financial reports.

Deadlines and Method of Submission to Hanfa (Official Gazette No. 142/22) Article 12. (1) The Fund operator is obliged to submit semi-annual financial reports to Hanfa within two months from the end of the first half-year of the current business year. (2) The Fund operator is obliged to submit annual financial reports to Hanfa within four months from the last day of the business year to which the reports relate. (3) The Fund operator is obliged to submit semi-annual and annual financial reports to Hanfa in the form and manner prescribed by Hanfa's Instructions. (4) Deleted. (5) Deleted.

Entry into Force Article 13. (1) This Regulation enters into force on the eighth day from the date of publication in the Official Gazette, and semi-annual financial reports are first applied with effect from 30 June 2019. (2) Upon entry into force of this Regulation, the Regulation on Calculation, Method and Deadlines for Payment of Regular Contributions by Members of the Investor Protection Fund (Official Gazette No. 81/09) and the Regulation on Structure and Content of Semi-annual and Annual Financial Reports of the Investor Protection Fund (Official Gazette Nos. 41/16 and 128/17) cease to apply.

Final Provisions Regulation on Amendments to the Regulation on Regular Contributions of Members, Asset Management and Financial Reporting of the Investor Protection Fund (Official Gazette, No. 132/20), entered into force on 8 December 2020. Article 4. This Regulation enters into force on the eighth day from the date of publication in the Official Gazette, and annual financial reports are first applied with effect from 31 December 2020.

FINAL PROVISION Regulation on Amendments to the Regulation on Regular Contributions of Members, Asset Management and Financial Reporting of the Investor Protection Fund (Official Gazette, No. 142/22), entered into force on 1 January 2023. Article 5. This Regulation shall be published in the Official Gazette and enters into force on 1 January 2023.

ANNEX I Form for Reporting on the Status of the Investor Protection Fund (FZU) Basic data on the status of the Investor Protection Fund Last day of reporting period Number of Fund members Cash funds in the account for Fund management fees Amount Credit institution

Assets of the Investor Protection Fund Cash funds in the account at HNB Time deposits Amount Credit institution Duration/maturity Interest

Financial instruments ISIN Quantity Duration/maturity Interest

Matured but unpaid claims of the Investor Protection Fund Amount Description

ANNEX II. (Official Gazette No. 142/22) FORMS OF FINANCIAL REPORTS OF THE OPERATOR OF THE INVESTOR PROTECTION FUND STATEMENT OF FINANCIAL POSITION AS AT

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD

STATEMENT OF CASH FLOWS (INDIRECT METHOD) for the period

STATEMENT OF CASH FLOWS (DIRECT METHOD) for the period