The Croatian Parliament has adopted amendments to the Act on Open-Ended Investment Funds with Public Offering, aligning the national regulatory framework with EU legal standards and international regulations. These changes aim to enhance the security and resilience of financial institutions and strengthen investor protection.
Key Reasons for the Amendments
The primary reason for these amendments is the adaptation of Croatian legislation to the Digital Operational Resilience Act (DORA) for the financial sector and alignment with OECD legal instruments. These changes enable better protection of the financial market, increase the digital resilience of investment funds, and contribute to business stability.
Additionally, the amendments introduce improvements in the regulation of market participants, with a particular focus on investor security. The new regulatory framework enhances transparency in the operations of investment funds and increases the security of financial transactions.
Changes in the Role of Depositaries
One of the significant changes concerns the role of depositaries. Under the new amendments, depositary services can now be performed by investment firms from Croatia and branches of investment firms from other EU member states. This change expands business opportunities and strengthens competitiveness in the financial market.
Impact on the Financial Sector and Investors
The implementation of these amendments strengthens the regulatory framework, improves the digital resilience of the financial sector, and enhances investor security. Special attention is given to protecting small investors, who make up the majority of participants in open-ended investment funds with public offerings.
The new legal framework will ensure compliance with EU standards and improve the digital resilience of financial institutions in line with the DORA regulation. This will allow better risk control and increase the security of operations for all entities active in the capital market.
How Can Coneo Help You?
Coneo provides expert support in understanding and implementing new regulatory requirements. Our team of experts can assist in adapting your business to the new legal framework, ensuring compliance with regulations and maximizing investor protection. Contact us for more information on how we can optimize your financial processes and ensure the security of your operations in the financial sector. The introduction of new rules enables better risk management and stronger protection of financial transactions, further reinforcing the regulatory framework of Croatia’s financial sector.
