Zagreb - State Secretary at the Ministry of Finance, Davor Zoričić, said on Monday that amendments to three laws -- the Open-End Investment Funds with Public Offering Act, the Alternative Investment Funds Act, and the Insurance Act -- aim to ensure digital and operational resilience for the financial sector.
Members of Parliament voiced their support in a brief debate on the final proposed amendments to these laws. Zoričić explained that these amendments align Croatia's regulatory framework with the relevant EU legislation, specifically the Digital Operational Resilience Act (DORA) for the financial sector, as well as with OECD legal instruments.
According to data from the Croatian Financial Services Supervisory Agency (HANFA), there are 121 open-end investment funds with public offerings operating in Croatia, with total net assets of €3.2 billion managed by four management companies.
Citing HANFA data, Zoričić said that Croatia currently has 45 alternative investment funds with total net assets of €1.2 billion, managed by 15 management companies. He further stated that 14 insurance and reinsurance companies are active in the country.
The final proposed amendments to the Open-End Investment Funds Act include expanding the range of entities eligible to act as depositaries to include investment firms. Additionally, the proposal allows investment firms, established in or operating through their branches in Croatia, to act as depositaries for alternative investment funds that share characteristics with open-end investment funds with public offerings.
"Expanding the range of entities eligible to act as depositaries to include investment firms will positively impact Croatia's capital market and further develop investment firms," Zoričić remarked.
The final proposed amendments to the Insurance Act introduce a requirement for prior approval from the Minister of Health before insurers can begin offering health insurance services, in accordance with provisions governing voluntary health insurance. Additionally, HANFA will receive enhanced powers to supervise and assess the financial resilience of insurance companies using tools and tests.