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Delegated tasks to third parties

Delegated tasks to third parties

The Company may, for objective reasons, increase efficiency to delegate the tasks it is required to perform to third parties, with the consent of the Agency. When selecting third parties, the Company takes care that these persons have the good reputation, professional qualifications and experience required to perform delegated affairs, and that delegation does not jeopardize the interests of the investor and the Fund.

List of delegated tasks to a third party:

DELEGATED TASKS THIRD PARTIES
IT services IN2 d.o.o., Zagreb
Promeks kompjuter d.o.o.
Analysis according to legal requirements; ZSPNFT, FATCA-i i CRS-u Erste & Steiermärkische Bank d.d.
Electronic storage and archive VIP DATA d.o.o.
Internal audit BDO d.o.o.

Depository

With respect to the financial instruments included in the depository of the Central Clearing Depository Company (CDCC), the Depositary intends to perform all the activities referred to in Article 218 of the Law on an independent basis. With respect to financial instruments invested in foreign deposits, the Depositary intends to delegate third party assignments to the Fund's financial instruments.

List of third parties with which the Depositary has concluded a Delegation Contract:

Risks associated with the company

Risks associated with the company
TYPE OF RISK DESCRIPTION LEVEL OF INFLUENCE
Market risk Potential loss risk due to the fall in price of each financial instrument  LOW
Operational risk  The risk of occurrence of an event resulting in financial loss, caused by inadequate processes, errors of people or systems LOW
Strategic risk The risk of negative effect due to bad business decisions of the Company  LOW
Reputation risk The risk of potential loss or reduction of future Company revenues due to unwanted events that distort the reputation of the Company  LOW
System risk Risk of potential loss due to the collapse of the entire financial system, the capital market and similar events LOW
Risk of continued sufficiency  The risk of undesirable event due to bad management decisions of the Company in terms of solvency, employee competence, business quality  LOW
Risk of conflict of interest  The risk of occurrence of an unwanted event due to employee activities that would put the Company and / or investors in disadvantaged position  LOW

The risks of each individual fund are described in detail in the Prospectuses and Rules.

FATCA and CRS

FATCA and CRS

Erste Asset Management applies the provisions of the FATCA regulations (Foreign Account Tax Compliance Act)  that became mandatory for all financial institutions in the Republic of Croatia after the signing of the Intergovernmental Agreement between the Republic of Croatia and the United States of America. According to FATCA, all financial institutions headquartered in the Republic of Croatia identify and inform local tax authorities (and through them and the US tax authorities - IRS) about US taxpayers who have financial assets in the Republic of Croatia.

Erste Asset Management applies CRS (Common Reporting Standard) provisions. The CRS is the Global Standards Organization for Economic Co-operation and Development ("OECD") for automatic exchange of information on financial accounts between competent jurisdictions where taxpayers have resident status as tax resident. It was developed to prevent tax evasion and was adopted by signing the Multilateral Agreement between the competent authorities on automatic exchange of information on financial accounts under the Convention on Mutual Administrative Assistance in Tax Matters. The Republic of Croatia has joined the Multilateral Agreement in October 2014 with the 2014/107 / EU Directive of 9 December 2014. (DAC 2) on amending Directive 2011/16 / EU with regard to mandatory automatic exchange of information in the field of taxation has created a single legal basis for the application of the Global Standards for EU Member States. Pursuant to the aforementioned Financial Services Directive, the Republic of Croatia is obliged to submit certain prescribed data on the financial accounts of the tax resident of the signatory states of the CRS to be forwarded by the Tax Administration of the Republic of Croatia to the tax administrations of the signatory States CRS.