Capital Market Law amendments

Croatia
Zagrebacka Banka d.d.
Wed, 15/04/2015

In order to further harmonise its legislation with EU regulations, the Croatian Parliament adopted a number of amendments to the Capital Market Act. We have summed up the most relevant changes.                                                    

In general, with these amendments, the regulatory framework will be harmonised with Directives 2013/36/EU, 2011/89/EU, 2014/59/EU, 2014/51/EU and Regulation (EU) No. 648/2012. They will become applicable as of 1 January 2016.

The most important changes to legislation are as follows:
- access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms

- supplementary supervision of financial entities in a financial conglomerate recovery plan of the investment company, i.e. measures taken to improve the financial position of the investment company in case of significant deterioration

- financial support from the Group in order to ensure mutual financial support in case one or more signatories (members of the Group) meets the requirements for an early intervention as prescribed by HANFA to an investment company in case of significant deterioration of its financial position

- introduction of the obligation for the competent authority of the home Member State to submit the final terms of the offer submitted by issuers to the competent authority of the host Member State and ESMA

- establishment of the legal grounds for business activities of a CCP, the consequences related to the opening of an insolvency procedure against a member of a clearing and/or settlement system, as well as the risk management mechanism allowing for the stock exchange, investment companies, CCP and their members to monitor and manage the exposure.

Contact:
Jelena Bilusic
Relationship Manager, Global Securities Services Croatia
jelena.bilusic@unicreditgroup.zaba.hr