Hrvatska agencija za nadzor financijskih usluga (HANFA)

Overview

The Hrvatska agencija za nadzor financijskih usluga (HANFA), or Croatian Financial Services Supervisory Agency in English, is the independent regulatory authority responsible for the supervision and regulation of Croatia's non-banking financial sector. Established in 2005 pursuant to the Act on the Croatian Financial Services Supervisory Agency (Official Gazette No. 140/05 and 12/12), HANFA consolidated the previously separate supervisory functions for securities markets, insurance, pension funds, leasing, and factoring into a single integrated regulator.

HANFA's scope of activities and competence covers the supervision of financial markets, financial services, and legal and natural persons providing those services. The Agency supervises and regulates securities markets, investment firms, insurance companies, pension funds and pension insurance companies, leasing companies, factoring companies, and other non-banking financial service providers operating in Croatia. The Agency is independent in its regulatory operations and funded through supervisory fees levied on regulated entities.

Croatia joined the European Union on 1 July 2013, the Exchange Rate Mechanism II (ERM II) on 10 July 2020, and adopted the euro as its official currency on 1 January 2023, becoming the 20th EU Member State to join the eurozone. These milestones have progressively integrated HANFA into the European regulatory framework, requiring full alignment with EU financial services directives and coordination with European Supervisory Authorities (ESAs).

Current President of the Board: Ante Zigman, PhD (appointed 2018; continuing in 2026)

Headquarter Location: Franje Rackoga 6, 10000 Zagreb, Croatia

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Capital Markets and Securities Regulation

HANFA is the competent authority for securities markets regulation in Croatia, responsible for maintaining fair, transparent, and efficient capital markets. Key functions include:

• Investment Firm Authorization and Supervision — Licensing and ongoing supervision of investment firms (brokers, dealers, advisors) for compliance with MiFID II requirements as transposed into Croatian law through the Capital Market Act
• Public Offerings and Prospectuses — Review and approval of prospectuses for public offerings of securities and admission to trading on regulated markets
• Market Abuse Prevention — Investigation and enforcement against insider trading, market manipulation, and unlawful disclosure of inside information under the EU Market Abuse Regulation (MAR)
• Regulated Market and MTF Oversight — Supervision of the Zagreb Stock Exchange (Zagrebacka burza, ZSE) and any multilateral trading facilities
• Post-Trade Infrastructure — Oversight of the Central Depository and Clearing Company (SKDD) for securities settlement
• Corporate Governance and Financial Reporting — Monitoring of listed company disclosure obligations, periodic financial reporting, and corporate governance standards
• Takeover Bids — Supervision of mandatory and voluntary takeover bid procedures

The Zagreb Stock Exchange (ZSE) is the primary regulated market in Croatia, and HANFA oversees its operations, listing rules, and trading conduct standards.

Collective Investment Schemes and Asset Management

HANFA authorizes and supervises collective investment scheme operators and asset managers:

• UCITS Management Companies — Authorization and supervision of UCITS management companies and fund prospectuses
• Alternative Investment Fund Managers (AIFM) — Authorization and registration of AIFM under the AIFMD framework
• Fund Governance and Risk Management — Oversight of fund management governance, valuation procedures, liquidity management, and risk controls
• Cross-Border Fund Distribution — Supervision of EU fund passporting into and from Croatia
• Investor Information — Fund prospectus requirements, periodic reporting, and performance disclosure standards

Insurance Market Supervision

HANFA is the competent authority for insurance and reinsurance supervision in Croatia:

• Insurance Company Licensing — Authorization of insurance and reinsurance undertakings
• Solvency II Compliance — Prudential supervision under the Solvency II Directive, including capital adequacy, technical provisions, and governance requirements
• Insurance Distribution — Oversight of insurance intermediaries, brokers, and agents under the Insurance Distribution Directive (IDD)
• Consumer Protection — Monitoring of policy terms, claims handling, and insurance product governance
• Reinsurance Oversight — Supervision of reinsurance activities and ceding arrangements

Ante Zigman, President of HANFA's Board, is a recognized leader in European insurance supervision, having been elected as a member of EIOPA's Management Board.

Pension Fund Supervision

HANFA regulates mandatory and voluntary pension funds in Croatia:

• Mandatory Pension Funds (Second Pillar) — Licensing and supervision of mandatory pension fund management companies and funds
• Voluntary Pension Funds (Third Pillar) — Oversight of voluntary pension fund management companies
• Pension Fund Investment Policy — Monitoring of pension fund investment policies, asset allocation limits, and risk management
• Member Protection — Ensuring pension fund solvency, adequate reserves, and fair treatment of pension fund members
• Pension Fund Governance — Oversight of pension fund management company governance and internal controls

Leasing and Factoring Supervision

HANFA has unique supervisory competence over leasing and factoring companies, which is broader than many EU securities regulators:

• Leasing Company Supervision — Authorization and oversight of financial leasing and operational leasing companies
• Factoring Company Supervision — Regulation of factoring service providers
• Consumer Protection — Monitoring of leasing and factoring contract terms and consumer treatment

AML/CFT Compliance Supervision

HANFA exercises AML/CFT supervisory authority over entities within its regulatory perimeter:

• Customer Due Diligence — Verification of KYC, CDD, and EDD requirements for investment firms, insurance companies, pension funds, and other supervised entities
• Suspicious Activity Reporting — Coordination with the Croatian Financial Intelligence Unit (FIU-HRB)
• Sanctions Compliance — Monitoring of compliance with EU, UN, and national sanctions lists
• Beneficial Ownership — Verification of beneficial ownership identification and transparency requirements
• Cross-Border Transaction Monitoring — Oversight of cross-border investment and insurance transactions for AML/CFT compliance

Financial Stability and Risk Monitoring

HANFA monitors risks and stability across the non-banking financial system:

• Systemic Risk Assessment — Identification and monitoring of systemic risks in capital markets, insurance, and pension fund sectors
• Macroprudential Coordination — Cooperation with the Croatian National Bank (HNB) and European Systemic Risk Board (ESRB) on macroprudential policy
• Stress Testing — Conducting and coordinating stress tests for insurance companies and pension funds
• Financial Education — Consumer financial education programs on investment, insurance, and pension topics

Recent Developments (2025-2026)

Euro Adoption Transition (2023-2026): Following Croatia's euro adoption on 1 January 2023, HANFA-supervised entities have fully transitioned to euro-denominated operations, impacting investment fund valuations, insurance policy pricing, and pension fund accounting.

OECD Accession: Croatia is pursuing OECD membership, and HANFA President Ante Zigman has been an active participant in conferences on the benefits of Croatia's accession to the OECD for financial market development.

Investor Guidance (2026): In response to global trade tensions and market volatility, HANFA has issued guidance urging Croatian investors to diversify portfolios and consider European asset allocation, reflecting the Agency's proactive approach to investor protection.

MiCA Implementation: HANFA has taken on competent authority roles for certain aspects of MiCA regulation, particularly regarding crypto-asset service provider oversight for entities falling within its supervisory perimeter.

Regulatory Powers

HANFA possesses comprehensive administrative enforcement authority over supervised entities:

• Administrative Fines — Imposition of fines for regulatory violations, with amounts varying by severity and violation category
• Corrective Orders and Mandatory Compliance Directions — Binding directives requiring regulatory compliance within specified timelines
• License Suspension or Revocation — Withdrawal of authorization for serious or persistent violations
• Prohibition Orders — Prohibitions on individuals from holding management positions in regulated entities
• Supervisory Measures — Enhanced monitoring, business activity restrictions, mandatory governance changes
• Public Disclosure — Publication of enforcement actions and sanctions decisions
• Supervisory Warnings — Issuance of formal warnings and recommendations to supervised entities
• Temporary Activity Restrictions — Prohibition of specific business activities pending compliance remediation

HANFA publishes annual reports detailing supervisory activities, enforcement actions, and market developments. The Agency's enforcement approach emphasizes proportionality, with graduated sanctions from warnings through to license revocation.

Criminal Referral

For serious violations involving potential criminal conduct, HANFA coordinates with the Croatian State Attorney's Office and law enforcement agencies for criminal investigation and prosecution.

Regulatory Role and Function

Executive Leadership

President of the Board: Ante Zigman, PhD (since 2018; continuing in 2026)

Ante Zigman holds a PhD and has extensive experience in financial regulation. He is also a member of EIOPA's Management Board, reflecting Croatia's integration into European insurance supervision governance.

Board Composition:

The HANFA Board consists of the President and Board Members appointed in accordance with the Act on the Croatian Financial Services Supervisory Agency. The Board is the Agency's governing and decision-making body.

Organizational Structure:

HANFA is organized into supervisory and support divisions:

• Capital Markets Supervision Division — Securities markets, investment firms, and market infrastructure
• Insurance Supervision Division — Insurance and reinsurance company oversight
• Pension Fund Supervision Division — Pension fund management company and fund oversight
• Leasing and Factoring Supervision Division — Leasing company and factoring company oversight
• Legal and Enforcement Division — Legal affairs, enforcement proceedings, and regulatory drafting
• Risk Analysis and Financial Stability Division — Risk monitoring and macroprudential coordination
• International Cooperation Division — EU and international regulatory coordination
• Consumer Protection and Education Division — Consumer complaints, financial education, and market communication

Legal Foundation

HANFA operates under the following primary legislative framework:

Act on the Croatian Financial Services Supervisory Agency (Official Gazette No. 140/05 and 12/12)

• Establishes the legal status, functions, organizational structure, and powers of HANFA
• Defines the composition and appointment procedures for the Board
• Grants HANFA independence in regulatory operations
• Sets out the enforcement powers, administrative sanctions, and supervisory procedures

Capital Market Act (Zakon o trzistu kapitala)

• Transposition of MiFID II into Croatian law
• Establishes the regulatory framework for investment firms, regulated markets, and market infrastructure
• Grants HANFA licensing and supervisory authority over investment intermediaries and trading venues
• Regulates public offerings, prospectuses, and ongoing disclosure obligations

Insurance Act (Zakon o osiguranju)

• Comprehensive legislation governing insurance and reinsurance activities in Croatia
• Transposes Solvency II Directive requirements
• Grants HANFA licensing and prudential supervisory authority over insurance undertakings

Mandatory Pension Funds Act (Zakon o obveznim mirovinskim fondovima)

• Establishes the legal framework for mandatory pension funds (second pillar)
• Grants HANFA licensing and supervisory authority over mandatory pension fund management companies

Voluntary Pension Funds Act (Zakon o dobrovoljnim mirovinskim fondovima)

• Establishes the framework for voluntary pension savings (third pillar)
• Grants HANFA supervisory authority over voluntary pension fund managers

Alternative Investment Funds Act (Zakon o alternativnim investicijskim fondovima)

• Transposition of the AIFMD into Croatian law
• Grants HANFA authorization and supervisory authority over AIFM

Open-End Investment Funds with Public Offering Act

• Transposition of the UCITS Directive into Croatian law
• Grants HANFA authorization and supervision of UCITS management companies

Leasing Act (Zakon o leasingu)

• Establishes the regulatory framework for leasing activities
• Grants HANFA supervisory authority over leasing companies

Factoring Act (Zakon o faktoringu)

• Establishes the regulatory framework for factoring services
• Grants HANFA supervisory authority over factoring companies

Law on Prevention of Money Laundering and Terrorist Financing

• Transposing EU AML Directives
• Establishes AML/CFT compliance requirements for HANFA-supervised entities

EU Regulatory Frameworks:

• Markets in Financial Instruments Directive II (MiFID II) and MiFIR
• Solvency II Directive
• Insurance Distribution Directive (IDD)
• Alternative Investment Fund Managers Directive (AIFMD)
• UCITS Directive
• Market Abuse Regulation (MAR)
• Markets in Crypto-Assets Regulation (MiCA)
• Sustainable Finance Disclosure Regulation (SFDR)
• European Market Infrastructure Regulation (EMIR)

Licensing and Authorization Relevance

HANFA licenses and authorizes non-banking financial market participants in Croatia:

The licensing process involves assessment of capital adequacy, fitness and propriety of management, business plan viability, organizational structure, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

HANFA does not directly regulate payment systems or payment service providers. Payment institution licensing and supervision in Croatia falls under the jurisdiction of the Croatian National Bank (HNB). However, HANFA's regulatory activities intersect with payments and money movement in several areas:

Payment Systems Governed or Overseen

HANFA does not directly operate or oversee payment systems. Payment system oversight is the responsibility of the Croatian National Bank (HNB). However, HANFA oversees post-trade infrastructure relevant to securities markets:

[Payment systems operated by HNB are documented in A229-HR-NAT-croatian-national-bank.md]

Relationship to Other Regulators

Croatian National Bank (HNB) — A229

HANFA and the Croatian National Bank (HNB) form Croatia's dual regulatory structure for the financial sector:

• HNB Jurisdiction: Banking supervision (under SSM since euro adoption), payment institution licensing, electronic money institution licensing, monetary policy (within Eurosystem since 1 January 2023), payment systems operation and oversight, AML/CFT supervision for banks and payment service providers
• HANFA Jurisdiction: Capital markets, investment firms, insurance, pension funds, leasing, factoring, and non-banking financial services
• Coordination: The two regulators coordinate on financial stability matters, cross-sectoral risk assessment, macroprudential policy, and AML/CFT enforcement through formal cooperation agreements
• Complementary Roles: An entity seeking to operate across both banking and capital markets in Croatia must obtain authorizations from both the HNB (for banking/payment activities) and HANFA (for investment/securities/insurance activities)
• Financial Stability Coordination: Both institutions participate in the national macroprudential framework and coordinate with the European Systemic Risk Board (ESRB)

European Securities and Markets Authority (ESMA)

• Policy coordination, supervisory convergence, and regulatory harmonization
• Participation in supervisory colleges for cross-border investment firms
• Market surveillance data sharing and enforcement cooperation
• MiFID II and MiCA implementation coordination

European Insurance and Occupational Pensions Authority (EIOPA)

• Solvency II supervisory coordination
• Insurance Distribution Directive implementation
• Pension fund supervision standards alignment
• Cross-border insurance supervision cooperation
• Ante Zigman serves as a member of EIOPA's Management Board

European Systemic Risk Board (ESRB)

• Macroprudential risk assessment coordination
• Systemic risk monitoring in non-banking financial sector
• Financial stability data reporting

International Organization of Securities Commissions (IOSCO)

• Securities regulation harmonization
• Cross-border enforcement cooperation
• Market integrity and investor protection standards

International Association of Insurance Supervisors (IAIS)

• Insurance supervision standards development and coordination
• Ante Zigman participates in IAIS activities

Croatian Financial Intelligence Unit (FIU-HRB)

• AML/CFT coordination for non-banking financial sector
• Suspicious activity report processing and intelligence sharing
• Sanctions enforcement coordination

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

HANFA Headquarters

• Address: Franje Rackoga 6, 10000 Zagreb, Croatia
• Telephone: +385 1 6173 200
• Insurance Supervision: +385 1 6173 403
• Pension Fund Supervision: +385 1 6173 335
• Additional Contact: +385 1 6173 462
• Website: https://www.hanfa.hr/en/

President's Office

• Contact: Office of President Ante Zigman, PhD
• Telephone: +385 1 6173 200 (Central Switchboard)

Capital Markets Supervision Division

• Focus: Securities markets, investment firms, market infrastructure
• Contact: Available through official website

Insurance Supervision Division

• Focus: Insurance and reinsurance company oversight
• Telephone: +385 1 6173 403

Pension Fund Supervision Division

• Focus: Pension fund management oversight
• Telephone: +385 1 6173 335

Notes on Naming and Language