Rulebook on Promotion and Other Information for Members of Voluntary Pension Funds – Unofficial Consolidated Text (NN, Nos. 101/2014, 41/2017 and 70/2024)

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UNOFFICIAL CONSOLIDATED TEXT
(Official Gazette Nos. 101/2014, 41/2017, 70/2024) Pursuant to Article 66(2), Article 146(2), Article 147, and Article 203 of the Voluntary Pension Funds Act (Official Gazette Nos. 19/2014, 29/2018, 115/2018 and 156/2023), the Croatian Financial Services Supervisory Agency (HANFA) adopts at its Management Board meeting held on 4 June the Rulebook on Promotion and Other Information for Members of Voluntary Pension Funds.

INTRODUCTORY PROVISIONS
Article 1.
This Rulebook prescribes:
− the content, deadlines, issuance, amendments and retention of promotional material regarding the fund, − the content and methods for presenting the fund's performance results, − the content of the quarterly report to members on the fund's operations, − the manner, content and deadlines for publishing events related to the pension company and the managed fund that may affect the fund's operations, − additional data and information that must be contained on the pension company's website.

Article 2.
For the purposes of this Rulebook, certain terms have the following meanings:

1. HANFA is the Croatian Financial Services Supervisory Agency.
2. The Act is the Voluntary Pension Funds Act (Official Gazette Nos. 19/2014, 29/2018, 115/2018 and 156/2023).
3. A pension company is an entity that, based on HANFA's approval, carries out the business of managing voluntary pension funds.
4. A fund is a voluntary pension fund.
5. An open fund is a voluntary pension fund into which, under the conditions stipulated by the Act, all natural persons may become members.
6. A closed fund is a voluntary pension fund into which, under the conditions stipulated by the Act, natural persons who are employed by an employer or are members of trade unions, members of associations of self-employed persons, or self-employed individuals may become members.

PROMOTIONAL MATERIAL
Article 3.
Promotional material of a pension company and fund comprises all information communicated by the entities referred to in Article 141 of the Act via promotional means under Article 143 of the Act, from which the intent to promote is unequivocally derived. Information in promotional material includes, but is not limited to, highlighting names, returns, methods of fund membership, and mentioning financial groups or other persons connected with the entities under Article 141 of the Act, regardless of the channel or medium through which promotional material is disseminated to the public.

Article 4.
In addition to the provisions of Article 145 of the Act, promotional material must not contain written, oral or pictorial statements and messages:

1. that state inaccurate data or expressions that may create a false impression about the pension company and fund;
2. that place other pension companies and funds at a disadvantage;
3. that negatively, falsely or incorrectly portray other participants in the financial market;
4. that mislead fund members or potential members in any way.

Article 5.
(1) A pension company must submit promotional material regarding the fund and the pension company to HANFA prior to publication.
(2) If amendments are made to promotional material regarding funds and pension companies, the pension company must act in accordance with paragraph 1 of this Article. (3) A pension company must retain a copy of each published promotional material, where applicable, as well as the data sources supporting the claims in such publications. (4) A pension company must submit the promotional material referred to in paragraphs 1 and 2 of this Article to HANFA in the manner and in accordance with the Technical Instruction for using the electronic data submission system of the Croatian Financial Services Supervisory Agency (reports.hanfa.hr) and the Instruction for completing web forms for pension companies. (5) A pension company is deemed to have submitted the documentation referred to in paragraphs 1 and 2 of this Article at the time the documentation is recorded on the server for sending such documentation. (6) In justified cases of technical inability to submit or improperly executed submission (e.g., system failure, inability to read received documentation, etc.) in the manner prescribed by paragraph 4 of this Article, a pension company must submit the documentation in written form, directly or by post for timely reporting. The pension company must submit the documentation in the manner prescribed by paragraph 4 of this Article as soon as the reasons for such submission inability cease, and no later than within 8 days from the cessation of circumstances causing the technical inability. (7) HANFA may, if necessary, request a pension company to submit certain documentation prescribed by paragraphs 1 and 2 of this Article in original or certified copy, regardless of the electronic submission already made.

PRESENTATION OF FUND PERFORMANCE RESULTS
Article 6.
Fund performance results are considered to be information on the value of assets under management, returns, portfolio structure, total costs and shares, or all information aimed at presenting the fund's operations.

Article 7.
The calculation of the fund share value used as promotional material must result from asset valuation in accordance with International Financial Reporting Standards, the Act, regulations adopted under the Act and the accounting policies of the relevant fund, with such share value confirmed by the fund's depositary.

Article 8.
(1) Information on fund returns must be presented:
1. for the current year;
2. for the previous one-year period;
3. as an average annual return since fund inception;
4. for the entire period prescribed by Article 146(1)(3) of the Act, as an annual return expressed separately for each calendar year;
5. a description and methodology of how it is calculated;
6. with the note that fund performance results achieved in previous periods do not serve as an indication and have no effect on future fund performance results.
(2) A pension company must present all return information referred to in paragraph 1 of this Article in one place without separating them.
(3) When presenting fund return information under paragraph 1 of this Article, a pension company must adhere to the following:
1. fund returns for periods shorter than one year must not be presented on an annualized basis;
2. if fund returns for multi-year periods are presented, the average annual return calculated as a geometric mean must be shown;
3. fund returns must always contain the precisely stated time period to which they relate (start and end dates);
4. alongside fund returns, promotional information must include basic data on fund risks;
5. fees and costs of the fund taken into account when calculating fund returns must be stated.

QUARTERLY REPORT FOR FUND MEMBERS
Article 9.
(1) The quarterly report for fund members under Article 199 of the Act must contain at least the following data:

1. basic information on the fund;
2. investment objectives and fund investment strategy;
3. fund investment structure;
4. fund fees;
5. net asset value and fund share price;
6. data on fund returns;
7. graphical representation of the fund share price movement;
8. name of the fund's depositary.
   (2) The quarterly report for members of open funds on the pension company's website must be available for two years from the date of publication.
   (3) The quarterly report for members of closed funds must be published by the pension company in the manner and within the timeframe defined in the membership agreement under Article 115 of the Act.

Article 10.
The basic fund information under Article 9(1)(1) of this Rulebook must contain at least the following:

1. name of the pension company;
2. fund name;
3. indication of fund type;
4. amount of minimum contribution to the fund;
5. date of fund commencement;
6. initial fund share value.

Article 11.
(1) The quarterly report must contain at least the following investment structure data under Article 9(1)(3) of this Rulebook, relating to the period for which the report is prepared:
1. ten (10) largest investment positions with an indication of their percentage share in the fund's net assets;
2. fund asset structure by asset types;
3. fund asset structure by countries, country groups or regions;
4. currency exposure of fund assets;
5. fund asset structure by economic sectors;
6. for investments valued using the appraisal method, the issuer's name / indication of real estate or special purpose vehicle, identification codes for securities where applicable, current appraised values, and methods and dates of the last appraisal, except for transferable debt securities or money market instruments whose issuer or guarantor is the Republic of Croatia, another EU Member State, an OECD country, the Croatian National Bank, a central bank of another EU or OECD Member State, or a public international body to which one or more EU Member States belong;
7. data under points 1 to 5 of this paragraph may be presented graphically or in tabular form with an indication of the percentage share of each category shown graphically.
(2) The quarterly report must also indicate the percentage share of transferable securities in the fund's net assets, grouped as follows:
1. transferable securities listed or traded on regulated markets under Article 155(1)(1)(a) of the Act;
2. transferable securities traded on other regulated markets under Article 155(1)(1)(b) of the Act;
3. transferable securities under Article 155(1)(2) of the Act;
(3) Data on ten (10) fund asset investment positions under paragraph 1(1) of this Article must clearly indicate the financial instrument or asset concerned, showing the following:
1. for transferable securities and money market instruments, the issuer's name and identification code;
2. for deposits, the name of the credit institution where the deposit is held;
3. for all other financial instruments and assets in the ten (10) largest fund investment positions not covered by points 1 and 2, data must be provided to clearly indicate the financial instrument or asset concerned.
(4) The fund's asset structure by countries, country groups or regions under paragraph 1(3) and economic sectors under paragraph 1(5) of this Article must clearly show actual exposure to issuers or markets of specific countries, country groups or regions, and economic sectors, including exposure achieved through investments in derivatives, shares or units of investment