Regulation on Procedures, Conditions and Method of Transfer of Management Business of Mandatory Pension Funds - Unofficial Consolidated Text (NN, Nos. 52/14 and 39/17)

UNOFFICIAL CONSOLIDATED TEXT
NN 52/2014 dated 28.04.2014.
NN 39/17 dated 21.04.2017. (effective from 01.05.2017.)
CROATIAN AGENCY FOR FINANCIAL SERVICES SUPERVISION Pursuant to Article 69(6), Article 72(5), Article 76(3) and Article 76(13) of the Mandatory Pension Funds Act (»Narodne novine« No. 19/2014, hereinafter: the Act), the Croatian Agency for Financial Services Supervision (hereinafter: the Agency) at its Management Board meeting held on 18 April 2014 adopts REGULATION ON PROCEDURES, CONDITIONS AND METHOD OF TRANSFER OF MANAGEMENT BUSINESS OF MANDATORY PENSION FUNDS Introductory Provisions
Article 1.
This Regulation further specifies the procedure, conditions and method of voluntary and compulsory transfer of management business of mandatory pension funds.
Article 2.
Certain terms in the context of this Regulation shall have the following meanings:

1. Agency means the Croatian Agency for Financial Services Supervision.
2. Act means the Mandatory Pension Funds Act (»Narodne novine« No. 19/2014).
3. Pension company means a company managing a mandatory pension fund.
4. Pension fund means a mandatory pension fund.
   VOLUNTARY TRANSFER OF MANAGEMENT BUSINESS OF PENSION FUNDS Content, publication method and delivery of information and notice regarding the voluntary transfer of management business of pension funds
   Article 3.
   (1) The transferring company and the receiving company shall, within 8 days of receiving the Agency's approval for the transfer of management business of pension funds, each on its website in a conspicuous place, publish information regarding the transfer of management business of pension funds, which shall contain at least the data specified in paragraph 2 of this Article. (2) The transferring company and the receiving company shall, within 15 days of receiving the Agency's approval for the transfer of management business of pension funds, via the Central Insurance Register notify all members of the pension funds they manage regarding the following:
   a) the company transferring or receiving the management business of pension funds, b) all procedures and actions to be undertaken by the transferring and receiving companies in connection with the transfer of management business, c) the period within which the management business will be transferred to the receiving company, pursuant to Article 69(3)(2) of the Act, d) the rights of pension fund members during the transfer of management business, particularly regarding:

• the right to exemption from exit fees due to the transfer of management business of pension funds to the receiving company, in accordance with Article 72(3) of the Act,
• the right to transfer accounts to another third-party pension company without incurring exit fees, in accordance with Article 72(4) of the Act,
  e) the basis and deadlines for the merger procedure of pension funds of the same category, which will follow after completion of the transfer of management business.
  (3) The notice specified in paragraph 2 of this Article shall be submitted by the transferring and receiving companies, each for its members, in writing to the Central Insurance Register, which shall then forward it to pension fund members by one of the following methods:

1. by electronic mail, if the member has provided a valid email address to the pension company or the Central Insurance Register and selected this method of data delivery, or
2. by postal mail.
   (4) Unless otherwise stipulated by the contract under Article 69(3) of the Act, the costs of notification specified in paragraphs 2 and 3 of this Article shall be borne by the transferring and receiving pension companies, each for its members. COMPULSORY TRANSFER OF MANAGEMENT BUSINESS OF PENSION FUNDS Public tender procedure for collecting bids to take over management and selection of the most suitable company in case of compulsory transfer of pension fund management
   Article 4.
   (1) In accordance with Article 76(1) of the Act, the depositary shall publish a public tender for collecting bids to take over management of pension funds within 7 days. The tender shall be published in one or more daily newspapers sold throughout or predominantly in the Republic of Croatia, as well as on the depositary's website. (2) Through the tender specified in paragraph 1 of this Article, the depositary invites all interested pension companies that meet the conditions for managing pension funds and are interested in taking over management of pension funds to submit a bid for the management of pension funds under temporary administration by the depositary within 45 days. Criteria for selecting the most favorable pension company
   Article 5.
   When selecting the most favorable pension company to which the management business of pension funds will be transferred, the depositary and, as necessary, the Agency shall be guided by the following criteria:
   a) the company's past operations, success and results, b) the reputation of the company's management board members, c) the company's compliance with the provisions of the Act and regulations adopted thereunder, d) the timely and proper fulfillment of the company's obligations, e) the company's cooperation with members, f) the company's cooperation with the depositary, g) the company's cooperation with the Agency, particularly in supervisory procedures, and h) other relevant criteria for protecting the interests of pension fund members. Content, publication method and delivery of information and notice regarding the compulsory transfer of management business of pension funds
   Article 6.
   (1) The receiving company shall, within 8 days of receiving the Agency's approval for managing pension funds, publish information regarding the transfer of management business on its website in a conspicuous place, which shall contain at least the data specified in paragraph 2 of this Article. (2) The receiving company shall, within 15 days of obtaining the Agency's approval for managing pension funds, via the Central Insurance Register notify all members of the transferred pension funds regarding the following:
   a) the reason for the compulsory transfer of management business, pursuant to Article 74 of the Act, b) all procedures and actions to be undertaken in connection with the transfer of management business, c) the period within which the management business will be transferred to the receiving company, pursuant to Article 76(6) of the Act, f) the rights of pension fund members during the transfer of management business, particularly regarding:

• the inability of members to change pension funds, pursuant to Article 76(8) of the Act,
• the transfer to a pension fund of the corresponding category, pursuant to Article 76(9) of the Act,
• the right to transfer accounts to a pension fund managed by a third-party pension company, pursuant to Article 76(9) of the Act,
  g) the basis and deadlines for the merger procedure of the acquired pension funds, which will follow after completion of the transfer of management business.
  (3) The notice specified in paragraph 2 of this Article shall be submitted by the receiving company in writing to the Central Insurance Register, which shall then forward it to members of the transferred pension funds by one of the following methods:

1. by electronic mail, if the member has provided a valid email address to the pension company or the Central Insurance Register and selected this method of data delivery, or
2. by postal mail.
   (4) The costs of notification specified in paragraphs 2 and 3 of this Article shall be borne by the receiving pension company.
   ELECTRONIC DELIVERY
   Article 6a.
   (1) The receiving pension company may submit the application for issuing approval for the transfer of management business of pension funds and the required documentation to the Agency in accordance with the Technical Instruction for using the WEB form input service and electronic document delivery, and the Instructions for filling out WEB forms for pension companies. (2) It shall be deemed that the pension company has submitted the documentation specified in paragraph 1 of this Article at the moment when the documentation is recorded on the server for sending such documentation. Final Provisions
   Article 7.
   This Regulation shall enter into force on the eighth day following its publication in »Narodne novine«.
   Class: 011-02/14-04/29
   Reference No.: 326-440-14-1
   Zagreb, 18 April 2014.
   Chairman of the Management Board
   Petar-Pierre Matek, s.
   NN 39/17 dated 21.04.2017. (effective from 01.05.2017.)
   The Croatian Agency for Financial Services Supervision (hereinafter in the text: the Agency) pursuant to Article 69(6), Article 72(5), Article 76(3) and Article 76(13) of the Mandatory Pension Funds Act (»Narodne novine« No. 19/2014 and 93/2015), at its Management Board meeting held on 13 April 2017 adopts REGULATION ON AMENDMENTS AND SUPPLEMENTS TO THE REGULATION ON PROCEDURES, CONDITIONS AND METHOD OF TRANSFER OF MANAGEMENT BUSINESS OF MANDATORY PENSION FUNDS
   Article 1.
   In the Regulation on procedures, conditions and method of transfer of management business of mandatory pension funds (»Narodne novine« No. 52/14), following Article 6, a heading and Article 6a are added, which read:
   "ELECTRONIC DELIVERY
   Article 6a.
   (1) The receiving pension company may submit the application for issuing approval for the transfer of management business of pension funds and the required documentation to the Agency in accordance with the Technical Instruction for using the WEB form input service and electronic document delivery, and the Instructions for filling out WEB forms for pension companies. (2) It shall be deemed that the pension company has submitted the documentation specified in paragraph 1 of this Article at the moment when the documentation is recorded on the server for sending such documentation."
   Article 2.
   This Regulation shall be published in »Narodne novine« and shall enter into force on 1 May 2017.
   Class: 011-02/14-04/29
   Reference No.: 326-01-440-17-3
   Zagreb, 13 April 2017.
   Chairman of the Management Board
   Petar-Pierre Matek, s.