Regulatory Alerts2006-10-04
Added · Updated
Ordinance No. 34 of 04.10.2006 on Conditions for Concluding Transactions to Reduce Investment Risk for Supplementary Pension Funds, Sub-funds, and Payment Funds, and Related Requirements and Restrictions
The Financial Supervision Commission issued Ordinance No. 34, which defines the conditions, requirements, and restrictions for pension insurance companies to conclude hedging transactions aimed at reducing investment risk for supplementary pension insurance funds, their sub-funds, and payment funds. These transactions must align with the fund's investment policy and risk management strategy, and counterparties must meet specific credit rating and regulatory equivalence criteria. The ordinance also details how to determine the value of counterparty default risk and market risk for hedging instruments, setting limits on these risks relative to the fund's net assets.
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