Disclosure Requirements - Slovenia

02.06.2021

Disclosure Category 3

Background and legal basis

Article 129 of the Market in Financial Instruments Act, Official Gazette RS, Nr. 77/2018, requires shareholders to disclose and report when their voting rights in a company reach, exceed or fall below the established qualifying thresholds.

This applies to shareholders with positions in companies that have shares traded on the Ljubljana Stock Exchange (LjSE) or to shareholders with positions in companies that do not have shares traded on the LjSE but have at least 250 shareholders or more than EUR 4 million share capital as published in their Annual Report.

The obligation to disclose falls on the shareholder and the beneficial owner.

Directive (EU) 2017/828 of 17 May 2017 amending Directive 2007/36/EC with regard to the encouragement of long-term shareholder engagement (the second shareholder’s rights directive “SRD II”) has been transposed on 24 February 2021 into local Company`s Act (Zakon o Gospodarskih družbah - ZGD-1K).

The implementation law includes both the changes as described in the directive and the implementing regulation. The provision that are described in the directive SRD II will come into force as of 24 August 2021.

Obligations to report threshold crossings

There are no general ownership restrictions in the Slovenian securities market with regard to publicly available equities.

However, some companies may set special conditions or restrictions on some categories or classes of shares or (when the acquisition of ownership for credit institutions, investment services, insurance companies etc. causes them to exceed a 10%, 20%, 33⅓% or 50% qualifying holding threshold) request that the beneficial owner secure a licence from the public authorities.

Offering company typePermission fromAccording to (Act)

Bank

Bank of Slovenia

Banking Act (ZBan-2; Official Gazette of the RS, Nr. 25/2015 and amendments).

Insurance

Insurance Supervision Agency

Insurance Act Insurance Act (ZZavar-1; Official Gazette of the RS, Nr. 93/2015 and amendments).

Brokerage house

Securities Market Agency

Financial Instruments Market Act (ZTFI-1; Official Gazette of the RS, Nr. 77/2018 and amendments) and Banking Act (ZBan-2; Official Gazette of the RS, Nr. 25/2015 and amendments). 

Asset management company

Securities Market Agency

The Investment Funds and Management Companies Act (ZISDU-3; Official Gazette of the RS, Nr. 31/2015 and amendments).

Stock Exchange

Securities Market Agency

Financial Instruments Market Act (ZTFI-1; Official Gazette of the RS, Nr. 77/2018 and amendments) and Banking Act (ZBan-2; Official Gazette of the RS, Nr. 25/2015 and amendments).

Applicable to shareholders with positions in companies where:

  • Beneficial owners are required to report the crossing of a threshold in voting rights to the Securities Market Agency (SMA) and to the issuer within the fourth trading day.
  • Shareholders’ voting rights in the company reach, exceed or fall below the 5%, 10%, 15%, 20%, 25%, 33⅓%, 50% and 75% thresholds.

For a cross-over one third of the voting rights in a company takeover bid is necessary.

Sanctions

Failure to notify the SMA and the issuer results in a fine as follows:

For a legal entity:

Between EUR 12,000 and EUR 250,000

For a legal entity considered as a medium or large company:

Between EUR 25.000 and EUR 500.000

For a responsible person in the legal entity:

Between EUR 800 and EUR 10,000

For a natural person:

Between EUR 400 and EUR 5,000

Failure to obtain a licence from the respective public authority also results in a loss of voting rights.

Reporting to regulator

The provisions of the Bank of Slovenia (BSi) require all direct participants (including Nova Ljubljanska Banka d.d. - NLB) to disclose, on a monthly basis and for localisation purposes only, all client holdings in the different securities eligible in Klirinško depotna družba d.d. (KDD).

This disclosure includes a report by type of instrument and resident nationality of security holder. Nevertheless, the identity of holders within CBL, and of the underlying beneficial owners, remains undisclosed.

Shareholder identification as set out in the SRD II Law

The SRD II Law provides for the right for issuers to identify their shareholders.

Issuers can request intermediaries at each level of a custody chain to promptly provide relevant information to facilitate such identification.

In accordance with the SDR II Law as amended, an intermediary (in this case, Clearstream Banking) shall, upon receipt of the shareholder identification disclosure request, transmit a similar request to the next intermediaries in the custody chain (that is, Clearstream Banking customers with holdings in the requested securities). A response to the shareholder identification disclosure request shall be sent by every intermediary in the custody chain directly to the recipient's address defined in the request and without delay. Clearstream Banking will generate the response as required, with information regarding shareholder's identity, limited to Clearstream Banking books only.