Marketing of UCITS established in another European Union Member State within the territory of the Republic of Croatia

This page contains information on the national laws, regulations and administrative provisions governing the marketing requirements referred to in Article 5(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings

Summary of the marketing requirements for UCITS

A management company from another Member States intending to market units of UCITS they manage in the Republic of Croatia must familiarize themselves with instructions on the website of the competent authority of the UCITS home Member State on the notification procedure for cross-border marketing activity in another Member State.

  • Notification and prior approval of marketing communications

A management company must submit the notification letter with its annexes concerning the commencement of marketing in the Republic of Croatia to the competent authority of the UCITS home Member State. The notification letter must be prepared in accordance with the standard model prescribed by Commission Regulation (EU) No 584/2010 in the English language and sent to the designated e-mail address published on the website of the competent authority of the UCITS home Member State.

The competent authority of the UCITS home Member State shall forward the notification letter and its annexes to Hanfa in accordance with the rules set out in Commission Regulation (EU) No 584/2010.

A management company may commence marketing of units of UCITS established in another Member State on the territory of the Republic of Croatia as of the date when the competent authority of the UCITS home Member State informs the management company that the documents referred to above have been forwarded to Hanfa. The management company must notify Hanfa when it starts its marketing activity in the Republic of Croatia without delay.

Prior notification to Hanfa of marketing communications which UCITS management companies intend to use directly or indirectly in their dealings with investors is not required. Hanfa may assess the information provided in its ongoing supervision against the aforementioned requirements.

  • Other requirements for the marketing of UCITS

A management company which markets units of a UCITS from another Member State shall provide investors within the territory of the Republic of Croatia with all documents and information which it provides to investors in the UCITS home Member State in relation to the operation of the UCITS whose units are marketed in the Republic of Croatia.

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Marketing requirements for UCITS

NOTE! Management companies must familiarize themselves with instructions on the website of the competent authority of the UCITS home Member State on the notification procedure for cross-border marketing activity in another Member State.

Legal basis:

Act on Open-Ended Investment Funds With Public Offering (available in Croatian only)

Commission Regulation (EU) No 584/2010

a) Format and content of marketing material, including identification of the information and documents to be notified to the competent authority prior to beginning of marketing

A management company must submit the notification letter with its annexes concerning the commencement of marketing in the Republic of Croatia to the competent authority of the UCITS home Member State. The notification letter must be prepared in accordance with the standard model prescribed by Commission Regulation (EU) No 584/2010[1] in the English language and sent to the designated e-mail address published on the website of the competent authority of the UCITS home Member State.

The content of Part A and Part C of Annex I to Commission Regulation (EU) No 584/2010 is provided as a standard text and there is no Croatian regulation stipulating that content in any other manner, whereas in point 3 of Part B a management company must provide additional information which includes:

  • a precise description of the division of functions and responsibilities between the paying agent and the primary depositary of the UCITS, in particular in connection with the administration of the register of unit holders
  • a precise description of the manner in which the register of unit holders who invested in the Republic of Croatia is administered (how data confidentiality and security will be assured)
  • a precise description of the legal consequences for investor in the event of a rescission of the contract between the paying agent and the management company
  • in case it differs from one described in UCITS’s prospectus, a precise description of the procedure of subscription and redemption of units of UCITS in the Republic Croatia, in particular an indication of the time period and unit price at which subscription payments for units will be charged, and of the time period within which units will be redeemed, counted from the day a request for redemption is received. An indication of the deadline by which and the manner in which unit holders are notified of their unit balance.

The notification letter must include the details necessary, including the address, for the invoicing or for the communication of regulatory fees and charges levied by Hanfa and information on the facilities for performing the following tasks:

  1. process subscriptions, repurchase and redemption orders and make other payments to unit-holders relating to the units of the UCITS;
  2. provide investors with information on how orders can be made and how repurchase and redemption proceeds are paid;
  3. facilitate the handling of information and access to procedures and arrangements referred to in Article 15 of Directive 2009/65/EC relating to investors’ exercise of their rights;
  4. make the information and documents required pursuant to Chapter IX of Directive 2009/65/EC available to investors;
  5. provide investors with information relevant to the tasks that the facilities perform in a durable medium.

The facilities to perform the above tasks, including electronically, must be provided in Croatian or English.

The abovementioned notification letter must be accompanied by the following documents as annexes:

  1. fund rules, its prospectus, the latest annual report and where appropriate, any subsequent half-yearly reports. The documents submitted must be translated into Croatian or English.
  2. key investor information document (KIID) in Croatian.
  3. an attestation granted by the competent authority that the UCITS fulfills the conditions imposed by the UCITS Directive (2009/65/EC) (so-called UCITS attestation, as prescribed in Annex II to Commission Regulation (EU) No 584/2010). The attestation must be submitted in the English language.

The competent authority of the UCITS home Member State shall forward the notification letter and its annexes to Hanfa in accordance with the rules set out in Commission Regulation (EU) No 584/2010.

A management company must directly notify Hanfa of any changes to the notification letter or annexed documents referred to above and indicate where they are available in electronic form. In addition, the amended documents must be submitted to Hanfa in electronic form to the address passport.ucits@hanfa.hr.

In the event of a change in the information regarding the arrangements made for marketing communicated in the notification letter, or a change regarding share classes to be marketed, a management company shall give written notice thereof via the abovementioned e-mail address at least one month before implementing that change.

A management company may commence marketing of units of UCITS established in another Member State on the territory of the Republic of Croatia as of the date when the competent authority of the UCITS home Member State informs the management company that the documents referred to above have been forwarded to Hanfa. The management company must notify Hanfa when it starts its marketing activity in the Republic of Croatia without delay.

b) Verification of marketing communications by the competent authority

Prior notification to Hanfa of marketing communications which UCITS management companies intend to use directly or indirectly in their dealings with investors is not required. Hanfa may assess the information provided in its ongoing supervision against the aforementioned requirements.

c) Reporting obligations in relation to marketing

A management company must notify Hanfa when it starts its marketing activity in the Republic of Croatia without delay.

A management company must notify Hanfa directly of any changes to the notification letter or annexed documents referred to above and indicate where they are available in electronic form. In addition, the amended documents must be submitted to Hanfa in electronic form to the address passport.ucits@hanfa.hr.

A management company must notify Hanfa in the event of suspension of the repurchase or redemption of units of UCITS it manages without delay.

d) Passporting regime

As described under point a).

e) De-notification of arrangements made for marketing

A management company may de-notify arrangements made for marketing in Croatia as regards units of UCITS (including in respect of share classes) in respect of which it has made a notification, where all the following conditions are fulfilled:

  1. a) a blanket offer is made to repurchase or redeem, free of any charges or deductions, all such units held by investors in Croatia, is publicly available for at least 30 working days, and is addressed, directly or through financial intermediaries, individually to all investors in Croatia whose identity is known;
  2. b) the intention to terminate arrangements made for marketing such units in Croatia is made public by means of a publicly available medium, including by electronic means, which is customary for marketing UCITS and suitable for a typical UCITS investor;
  3. c) any contractual arrangements with financial intermediaries or delegates are modified or terminated with effect from the date of de-notification in order to prevent any new or further, direct or indirect, offering or placement of the units identified in the notification.

The information referred to in points a) and b) must clearly describe the consequences for investors if they do not accept the offer to redeem or repurchase their units and must be provided in Croatan or in English.

As of the date of de-notification, a management company must cease any new or further, direct or indirect, offering or placement of the units of UCITS which were the subject of de-notification in Croatia.

A management company must provide investors in Croatia who remain invested in the UCITS with all relevant documents which it provides to investors in the UCITS home Member State (fund rules, its prospectus, the latest annual report and where appropriate, any subsequent half-yearly reports translated in English or Croatian and key investor information document (KIID) in Croatian).

f) Other rules governing the marketing of UCITS applicable within the jurisdiction of the competent authority

  • Information to investors in the Republic of Croatia

A management company which markets units of a UCITS from another Member State shall provide investors within the territory of the Republic of Croatia with all documents and information which it provides to investors in the UCITS home Member State in relation to the operation of the UCITS whose units are marketed in the Republic of Croatia.

A management company must provide investors with all the documents and information in the manner provided for in the Act on open-ended investment funds with public offering. However, the frequency of publication of prices of units of a UCITS from another Member State is regulated by the law of the UCITS home Member State.

Documents and information related to a UCITS from another Member State must be made available or delivered to investors in the Republic of Croatia no later than on the day when these documents and information are made available or delivered to investors in the UCITS home Member State.

The key investor information document (KIID) must be made available to investors in the Republic of Croatia in Croatian.

The remaining documentation and information concerning a UCITS from another Member State must be made available or delivered to investors in the Republic of Croatia in Croatian or English.

A management company is responsible for the authenticity and accuracy of the translation of the documentation and information referred to above.

  • Distribution of UCITS units

Distribution of UCITS units may, in addition to management companies, be pursued by entities (investment firms, banks) authorised to perform investment services involving the reception and transmission of investors' orders in relation to financial instruments and/or investment advice.

  • Marketing communication

All marketing communication addressed to investors in Croatia must be identifiable as such and all information included in marketing communications must be fair, clear and not misleading, in line with ESMA Guidelines on marketing communication. All marketing communication for the purposes of advertising UCITS funds in the Republic of Croatia must be made in Croatian.

  • Other rules

A management company marketing units of UCITS it manages to investors in Croatia must apply relevant laws regarding consumer protection and the prevention of money laundering and terrorist financing that are in force in the Republic of Croatia.

Other requirements*

In addition to the provisions referred to above, which are set out specifically for the marketing of UCITS, there may be other legal provisions that may apply when marketing UCITS in the Republic of Croatia, although they are not specifically designed for the marketing of UCITS, depending on the individual situation of those involved in the marketing of units of UCITS. Marketing in the Republic of Croatia may trigger the application of other requirements, such as, but not limited to, requirement that apply on the basis of:

Disclaimer: Hanfa has taken reasonable care to ensure that the information on the national provisions governing the marketing requirements for UCITS in Croatia included on this webpage is up-to-date and complete. Hanfa is not responsible for maintaining external websites and is not liable for any error or omission on any external website to which hyperlinks are provided on this webpage.

[1] Management companies are instructed to use the amended notification letter template from Draft Consultation Paper on ITS and RTS on the notification of cross-border marketing and cross-border management activities as agreed by NCAs, which is in line with the Directive (EU) 2019/2162 and Regulation (EU) 2019/1156.

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Additional information

Notification of intention to market units of ucits

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List of UCITS established in another Member State registered for cross-border marketing in the Republic of Croatia

The list of UCITS from another Member State marketing their units in the Republic of Croatia can be found here.

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