Jadran Invest, a company managing investment funds, reported today to the Zagreb Stock Exchange about the order from the Croatian Financial Services Supervisory Agency (Hanfa) to align the operations of its closed-end real estate investment fund Jadran kapital d.d. with the provisions of Article 80 of the Investment Funds Act within 90 days.
Additionally, Hanfa has prohibited the disposal of the fund’s assets in a manner contrary to the provisions of Article 30, paragraph 1, point 2, and Article 80, paragraph 7 of the Investment Funds Act, as stated in Hanfa’s order. Furthermore, as part of its regular supervision of the operations of Jadran Invest and Jadran Kapital, covering their operations from January 1, 2006, to December 31, 2007, Hanfa determined that Jadran Invest, its CEO Darije Vladimir Josić, and board member Berislav Martić acted in a manner contrary to the provisions of Article 47, paragraph 1, points 1 and 2 of the Investment Funds Act, which stipulates that a management company must not assume obligations related to assets that at the time of assuming those obligations are not owned by the public offering investment fund.
In response to the received order from HANFA, the management of Jadran Invest d.o.o. hereby states that it will act in accordance with the relevant order from HANFA within the legal deadline. Given that the legislation and practice of closed-end investment funds with public offerings for real estate investment are relatively new in Croatia, the management of the company will seek consultations and interpretations from HANFA regarding the implementation of the alignment of the fund’s operations with the provisions of the Investment Funds Act, as stated in the announcement from the management of Jadran Invest d.o.o. (H)
