The Romanian Financial Supervisory Authority has published ambitious strategic objectives for 2017.
By Irina Savastre, Head of GSS Romania
The Board of the Financial Supervisory Authority (ASF) has adopted strategic objectives for 2017 which aim to stimulate the development of the three segments of the non-banking financial markets: capital market, insurance market and private pension market.
Capital market
In order to stimulate the development of the Romanian capital market, the ASF will continue with activities which are conducive to the sought-after status of emerging market. The main objectives of the ASF for 2017 are as follows:
- approve the merger of the two market operators – BVB and SIBEX;
- re-authorise the Central Depository in accordance with the provisions of the EU Regulation no. 909/2014;
- commence the project for the establishment of a National Central Counterparty;
- implement new corporate governance principles among entities of the capital market;
- prepare intermediaries for the new MiFID II requirements;
- maintain the trust of investors by improving the specific mechanisms for preventing and identifying market abuse.
Insurance market
The ASF also wants to stimulate the consolidation of the insurance market within the new legal context, seeking to align supervision and risk management with the standards of the Solvency II regime. Other measures envisaged by the ASF include updating and simplifying the dissemination of insurance products through the diversification of the distribution channels through intensifying the involvement of credit institutions in the distribution chain.
Private pensions
Regarding the private pension market, the main areas of action for 2017 will consist of improving upon the secondary regulatory framework for the development of the voluntary pension funds and drawing up and promoting certain legal measures to ensure the safe development of the private pension funds market.
The ASF aims to encourage portfolio diversification for private and voluntary pension funds with consideration for the pace at which their value increases. Other important objectives are the introduction of the occupational pension system, as well as providing support for the completion of legislation concerning the payment of pensions.
Along with the objectives mentioned above, the ASF will continue its effort to improve consumer protection, align local regulations with European legislation, strengthen the supervision of markets, improve the institutional capacity and contribute to European institution building.
Irina Savastre
Head of Global Securities Services Romania