Law no.272/2013 was published in the Official Gazette no.656, dated 25 October 2013, and brings a series of modifications to GEO no. 98/2006 regarding the supplementary supervision of credit institutions, insurance and / or reinsurance companies, financial investment services companies and asset management companies which are part of a financial conglomerate (“GEO 98/2006”), as well as to GEO no.99/2006 regarding credit institutions and capital adequacy (“Banking Ordinance”). The most important amendments are:
With regard to GEO 98/2006:
Alternative investment fund managers are qualified as regulated entities. Although they have not yet been regulated under Romanian law, they fall under the scope of Directive 2011/61/EU, which is to be transposed into Romanian law.
Exemptions from the enforcement of supplementary supervision will be revised annually by the relevant competent authorities, along with the quantitative indicators and financial groups’ risk evaluations.
Cooperation and information mechanisms with the recently established Joint Committee of the European Supervision Authorities (“Joint Committee”) are introduced, and obligations of informing the European Supervisory Authorities by the Romanian regulated entities are established.
Regulated entities that are part of a financial conglomerate have to provide information periodically regarding the legal structure, governance and organisation of the conglomerate and of its members.
With regard to the Banking Ordinance:
Provisions regarding supervision on a consolidated basis also become applicable to mixed financial holding companies (i.e. those parent companies which are not regulated entities and which form a financial conglomerate together with their subsidiaries, at least one of which is a regulated entity, and with other entities).
For those mixed holding financial companies, Romanian legal entities, which are subject not only to the Banking Ordinance provisions, but also to those for the insurance sector or those of GEO 98/2006, the NBR may decide, based on cooperation with the European relevant authorities, to apply only some of the above-mentioned provisions.
The objectives to be considered by the NBR within the implementation of some stabilisation measures for credit institutions are also defined: ensuring continuity of the main activity, maintenance of stability and market discipline, depositor protection of guaranteed deponents.
The concept of mixed financial holding companies is also introduced by Law no. 32/2000 regarding insurance activity and supervision.
Law no.272/2013 transposes into the Romanian legislation some of the provisions of Directive 2011/89/EU.
[Source: Official Gazette of Romania no. 656/25.10.2013]
For more information please contact Sorin David, Dan Dascalu, Anda Rojanschi or Manuela Guia.
Country Managing Partner, Romania
Tel: +40 21 225 3708