Ethical Code of the Association of supplementary pension companies member

P r e a m b l e

The Association of supplementary pension companies (hereinafter referred to as the “Association” only) established in accordance with the Agreement on foundation of Association and Articles of Association this set of rules as the Ethical Code of the member of Association (hereinafter referred to as the "Code" only), by which the member shall be governed in execution of his activity.
The member of the Association shall act in communication with the public, participants and beneficiaries, employers, shareholders, potential participants, his employees and with the other members of the Association honestly, professionally, responsibly and in dignified manner.
The member of the Association shall act professionally, ethically, and shall support others in their professional and ethical behaviour in such a way that credit of the members of the Association and of the entire supplementary pension saving scheme would be increased.

A r t i c l e 1

Introductory provisions

  • The Code is one of means of the implementation of strategic objectives of Association members. It establishes acknowledged values and basic ethical principles of members of the Association and their employees, based on which institutional culture of members of the Association is built-up and developed.
  • The Code establishes principles of behaviour in accordance with the valid legal regulations and other documents, whose observation protects interests of the clients, employees and determines relationships to the outer environment.
  • The observance of the Code is mandatory for all members of the Association.

  • Acknowledged values

  • Acknowledged values of Association members are as follows:
    • Respecting rights of the clients, employees and the other wide public,
    • Observing the generally binding legal regulations related to the activity of Association members,
    • Benefit and satisfaction of the clients coming into contact with employees of Association members,
    • Individual approach to the solution of problems of clients in accordance with acknowledged principles of just conduct,
    • Correctness in mutual competition on the market

    Definition of terms

  • For the purpose of the Codex, the following terms mean:
    • Supplementary pension company – a joint stock company having its registered office in the territory of the Slovak Republic and that is the holder of permit issued by the National Bank of Slovakia for the establishment and activity of the supplementary pension company in accordance with Act of the National Council of the Slovak Republic No. 650/2004 Coll. on supplementary pension saving and on amendment of certain other acts as amended (hereinafter referred to as the “Act” only), which is the contracting part of the Agreement on foundation of the Association,
    • Client – a participant in supplementary pension saving and beneficiary of benefits according to the Act,
    • Entity having special relationship to the member of Association – entity related through property or personally with the member of Association,
    • Monitored indicator – numerical data presented by the member of Association (for example degree of the growth of assets, number of participants in saving etc.).

A r t i c l e 2

Introductory provisions

General provisions

  • The member of Association shall:
    • Observe the valid and binding legal regulations of the Slovak Republic,
    • Observe the valid legal regulations of countries, where he conducts activities,
    • Observe the regulations of organizations, with which the member has established legal relationship, mainly the binding rules of organizers of the public market, as well as this Code and other binding rules,
    • Avoid and prevent violation of legal regulations and not to participate and support other parties in such conduct.

    Reference to membership in the Association

  • The member of Association has the right to refer to the membership by judicious and dignity manner in order he would not damage this membership, Association or other members of Association by any manner.
  • The member of Association can use the logo of Association and designation “Member of the Association of supplementary pension companies”, and at the same time shall care of its protection.

  • Professional conduct

  • The member of Association must not conduct in the non-professional manner including dishonesty, fraud or purposeful manipulation with facts or to participate in such conduct.
  • He must not speak about his supplementary pension company and about other members of the Association with prejudice, bias or untrue.

A r t i c l e 3

Relationships to clients and to the other public

The member of the Association shall:
  • Strengthen trust of the public to the supplementary pension saving scheme by his professional and unbiased conduct,
  • Not used in its activity the means that are in contradiction with the valid legal regulations, or which evade them,
  • Inform in truthful manner about his activity, achieved results, shall respond in time to comments and opinions, and shall explain important questions and problems,
  • Defend interests of clients of supplementary pension saving in relation to the public,
  • Maintain confidentiality in matters related to own activity with the stress put on confidentiality of personal data of his clients.

A r t i c l e 4

Relationships to employees of Association members

  • The member of the Association shall:
    • Respect human rights and the valid legal regulations in relation to his employees,
    • Respect the employee’s right for dignity and individuality regardless gender, race, language, age, religion, health state, political orientation, national or social origin,
    • Not maintain any records of the employee without his/her consent; shall not provide the information on him/her without possibility of the employee to comment them,
    • Respect the employee’s right to express own opinion related to the performance of work, organization of work and relationships between the employee and the member of the Association,
    • Carry out all activities that are inevitable for prevention of the origin of conflicts between the employee and the member of the Association in accordance with the relevant provisions of the Act.

    Conduct of the Association member employee against clients and the other public

  • In relation to the clients and the public, the employee shall:
    • Act correctly and with respect,
    • Choose formal, but sensitive individual approach to problems and actual physical condition of the clients and the other public,
    • Respect the right for freedom of information in accordance with the valid legal regulations,
    • Proactively approach to the solution of problems, act positively with the objective to satisfy the legal claims of the client,
    • Know the valid legal regulations related to the implementation of supplementary pension saving

    Informing the employees about the Code

  • The member of the Association shall:
    • Inform his employees about harmonization of his activity with this Code,
    • Familiarize his employees with the content of the Code.

    Application of inspection of employees

  • The member of the Association shall take adequate actions in order his employee would not carry out the activity, where it is possibility of conflict with interests of participants or member of the Association in management of assets in supplementary pension funds.
  • The member of the Association must not entrust his employee with work, where it is reasonable assumed the origin of conflict between interests of the employer in management of assets of participants in supplementary pension funds with personal interest of the employee.
  • Managers of the member of the Association must apply reasonable inspection of their subordinates, in order to avoid and reveal violation of the provisions of Items (4) and (5) of this Article.

A r t i c l e 5

Relationships to state authorities, organizations and mass media

  • The member of the Association shall act against the state authorities, organizations and mass media correctly, with high professionalism preserving his independence on them.
  • In relation to mass media, he shall act exclusively through employees charged with this task.
  • In negotiations with other institutions, he shall protect above all interests of clients and the supplementary pension saving scheme.

A r t i c l e 6

Promotion of supplementary pension saving

Prohibition of providing false, incomplete and misleading information

  • The member of the Association shall express in true, complete and unbiased manner about:
    • Services, which he is capable to provide
    • Qualification of his employees and managers,
    • Membership in the Association,
    • Services provided by other members of the Association,
    • Qualification of employees and managers of other members of the Association.
  • The member of the Association shall ensure that each written or oral promotion of supplementary pension saving would contain the understandable information on:
    • Specification of risk and yield that can be achieved by investment,
    • Investment instruments and techniques that will be applied in relation to provision of the presented value of investment,
    • Costs and fees related to supplementary pension saving.
  • The information according to previous paragraph need not be provided by the member of the Association during oral or written promotion, if it is integral part of the statute of supplementary pension fund or informational leaflet.
  • Informational leaflets, annual reports and statutes of supplementary pension funds, as well as other documents related to supplementary pension saving (for example list of fees) must be available to the public free of charge.
  • Prohibition of biased presentation of monitored indicators

  • The member of the Association must not in writing or orally present his achieved result in the false or biased manner. When presenting his results, he must inform correctly, without misleading and completely based on official sources (for example annual report on management approved by the respective statutory body).
  • When presenting the monitored indicators for the period longer than 12 months, their value conversed to the annual base must be clearly presented.
  • Prohibition of plagiarism

  • The member of the Association must not use the materials prepared by different entity or their counterparts without declaration and identification of the author or source of these materials.
  • The member of the Association must can use without stating the source the information that is usually provided by financial, statistical or similar service.

A r t i c l e 7

Management of assets

Caution and solidity in investment process

  • The member of the Association must apply professional approach, caution, solidity and independency in investment decisions.
  • In decision-making, he shall use sufficient and trustworthy database.
  • Principles of asset management applied against clients

  • The member of the Association must prefer client’s benefit before own interest.
  • He is obliged to fulfil all commitments assumed in conclusion of contracts with the client.
  • The member of the Association must not execute business transactions with entities with special relationship to him, if could be reasonable assumed that conflict of their interests with interest of clients would be occurred.
  • The member of the Association must not directly or indirectly through other persons change prices of securities on the market. He mainly must not:
    • Acquire assets to supplementary pension funds or receive services for higher prices than those that could obtain by exerting professional care,
    • Sell assets from supplementary pension funds or provide services for the prices that are lower than those that could be achieved by exerting professional care.

    Priority of transactions

  • Transactions related to supplementary pension funds shall be given preference before transactions of the member of the Association to his own account.
  • Transactions to the Association member account shall be given preference before transactions to the account of employees and members of management and supervisory bodies and other persons with special relationship to him.

A r t i c l e 8

Duty to inform

  • The member of the Association shall provide the Association in addition to the data required by the law (net asset value and valorisation of assets for the given period) the data on monitored indicators in the extent and within deadlines determined by the Presidency of Association.
  • In justified cases, the member of Association has the right to ask the Presidency of Association for granting an exception of duty to inform specified in the aforementioned article. When deciding about the exception, the Presidency of Association will take into account only obstacles that really and objectively prevent fulfilment of duty to inform.
  • In entry to the Association and in each change of data, the member of Association shall provide at least the following data:
    • List of members of supplementary pension company bodies,
    • Name and registered office of the depository and the auditor of supplementary pension company,
    • List of shareholders owning more than 5% of shares of supplementary pension company.

A r t i c l e 9

Acting of members on behalf of the Association

  • The member of the Association have the right to assert their common interests in accordance with Articles of Association in negotiations with state authorities, other authorities, as well as other entities, whose activities affect members of the Association.
  • In defence of interests according to previous paragraph, the Association must:
    • Act publicly, frankly and transparently,
    • Inform about impacts of the proposed solutions and their social benefit,
    • To keep publicly accessible records of meetings with entities, whose decisions they are trying to affect.

A r t i c l e 10

Relationships between members of the Association

Fair competition

  • The member of the Association shall conduct honestly, responsibly and correctly between each other in order no disputes could occur between them that are not of the nature of competitive conduct.
  • The member of the Association can develop freely competitive activity against the other members of the Association in order to achieve own benefit. The members of the Association must not carry out any activity that is in contradiction with good manners and that could simultaneously cause harm to other members of the Association, above all to the clients and shareholders of other members of the Association.
  • Conciliatory settlement of disputes

  • The members of the Association shall try to settle mutual disputes by an agreement. In the case if a member of the Association considers the conduct of other member of the Association to be in contradiction with Items (1) and (2) of this Article; if the mutual agreement has not achieved the dispute shall be settled by the Presidency of Association.
  • The members of the Association undertakes not to start lawsuits, administrative proceedings or other proceedings before attempting to settle mutual disputes by an agreement, or by the Presidency of Association. Before filing the proposal for lawsuit, administrative proceedings or other proceedings, the members of the Association shall inform in advance the affected member of the Association about their intent.
  • Inspection of observing the Code

  • Observance of the Code is inspected and sanctions for its violation are imposed to members by the Presidency of Association.

A r t i c l e 11

Final provisions

  • The Code was approved by the Presidency of Association on November 15, 2007
  • The Code shall enter into force on December 1, 2007.

 

Members of Association of supplementary pension companies:

  • AXA, d.d.s., a.s., Laurinská 18, 811 01 Bratislava www.axa-sk.com
  • NN Tatry - Sympatia, d.d.s., a.s., Jesenského 4/C, 811 02 Bratislava, www.nn.sk
  • STABILITA, d.d.s., a.s., Bačíkova 5, 040 01 Košice, www.stabilita.sk
  • Doplnková dôchodková spoločnosť Tatrabanky, d.d.s., a.s., Hodžovo námestie 3, 811 06 Bratislava, www.ddstatrabanky.sk