Hanfa Council Meeting: further financial literacy interventions, new insurance regulations, positive pension funds’ performance results and further strengthening of capital markets
At today's meeting, members of the Council of the Croatian Financial Services Supervisory Agency (Hanfa) discussed guidelines for boosting the financial literacy of citizens in the field of insurance, preparations for the implementation of the European Insurance Recovery and Resolution Directive (IRRD) and further activities concerning the cooperation of Central and Eastern European countries (CSEE) aimed at regional integration and strengthening capital markets. The Council also commented pension funds‘ performance and yields, as well as current developments and positive trends in the domestic capital market.
The new Guidelines for strengthening financial literacy of Croatian citizens in the field of insurance will bring clear standards of conduct for the purpose of harmonizing practices and improving the level of insurance knowledge of existing and future insurance services users. Transparency in communication, impartiality towards service providers, comprehensive information and fact-based accuracy are key principles of the Guidelines. Marketing messages or the prioritisation of certain services in the process of improving financial literacy will not be allowed, and educational activities should be focused on the basics of insurance, familiarisation with the right to choose, and clarification of insurance procedures and the rights of insurance users. Insurance companies will be instructed to ensure a minimum three-year budget and activity planning and periodic reporting to Hanfa on the activities undertaken in accordance with the Guidelines.
Preparations are ongoing for the implementation of the IRRD, which needs to be transposed into Croatian legislation by the end of January 2027. The purpose of the Directive is to harmonise the rules and procedures for the recovery and resolution of insurance and reinsurance companies, in order to ensure that EU competent authorities and companies are better prepared to deal with serious deterioration of their financial situation. This will allow public authorities to intervene early, quickly and across borders if needed. The new rules will protect insured persons, while minimising the impact on the economy and the financial system and avoiding the need to use taxpayers' money.
A representative of the Ministry of Finance of the Republic of Croatia presented plans regarding the continuation of cooperation between the countries of the CSEE region (Bulgaria, Croatia, Hungary, Poland, Romania, North Macedonia, Slovakia and Slovenia) in the field of regional integration and strengthening of capital markets. The ministries and stock exchanges of the participating CSEE countries have already signed Memoranda of Understanding (MoUs); the signing of MoUs between the regulators of the CSEE countries and the launch of the Technical Support Instrument (TSI) project are expected and in the coming period. The aim of the initiative is to reduce the fragmentation of capital markets in the region and improve their interconnection. Harmonisation of regulatory and market practices should contribute to increasing the attractiveness of the market for investors, facilitate cross-border investments and encourage a higher inflow of international capital to the participating countries.
A representative of the Association of Pension Companies and Pension Insurance Companies presented positive performance results achieved by pension funds this year. All three mandatory pension fund categories (A, B and C) have recorded positive results, with category A funds achieving significant growth and above-average yields. All voluntary pension funds have generated positive yields since their establishment. Developments in the capital market, particularly the growth of equity indices and stable bond yields, have had a positive impact on the overall performance of the funds. The level of yield depends largely on the investment strategy of the fund and on whether the investment policy is conservative or dynamic.
A representative of the Zagreb Stock Exchange (ZSE) presented its business operations in the third quarter of this year, emphasising excellent market trends. Two listings made a significant contribution to these results, raising significant funds and increasing the share of retail investor transactions. The regular and block turnover of shares rose, as did the total turnover of all instruments, with the CROBEX index approaching the level of 4,000 points. The Council also discussed future amendments to the ZSE Rules, as well as activities and initiatives in which the ZSE participates at national and EU level, such as amendments to national regulations and the Savings and Investments Union.
Hanfa Council is Hanfa’s advisory body that meets regularly and provides opinions and expert and scientific advice to develop and improve supervisory practice. It consists of nine members: President of the Hanfa Board (ex officio), five members elected by the representatives of supervised entities’ associations at the Croatian Chamber of Economy and three members appointed by the Government of the Republic of Croatia.
