Hanfa Board meeting: Cooperative Glas poduzetnika 2.0 prohibited from unauthorised provision of investment services
At its meeting held today, Hanfa Board issued a decision prohibiting the Cooperative Glas poduzetnika 2.0 from further unauthorised intermediation in investing in financial instruments, as well as holding clients' money without the legally prescribed requirements and protection.
In a supervisory inspection conducted by Hanfa, it was established that the Cooperative collected investment orders from citizens, mostly retail investors, for investing in the foreign hedge fund ORCA BASON and forwarded them to the American company Oraclum Capital LLC for execution. By doing so, it provided an investment service that is strictly regulated by law in Croatia without having the necessary permits.
In addition, the money that investors paid was kept on the regular account of the Cooperative, without being separated from other funds and without the protection measures required by law in respect of clients' money. Such a practice exposes clients to additional risk because their funds may be subject to Cooperative’s debt collection.
For these reasons, Hanfa has issued a decision ordering the Cooperative to immediately cease all such activities and return uninvested funds, and prohibiting further provision of investment services without the necessary authorisations.
More details about this and other decisions from today's meeting are available here.
