On 20.08.2020 the FSA issued Decision no. 987 approving amendments to the CSD Code of Rules. The amendments were initially approved by the CSD Board on 24.04.2020 and by the National Bank of Romania on 16.07.2020.
The modifications targeted the following:
- Updates on the provisions related to the existence of the contractual clause regarding clients’ agreements for using financial instruments in case of sell-out procedures when clients do not fulfill their payment obligations for the settlement of trades
- Updates on provisions related to documentation required from issuers for their registration with the CSD
- Additional provisions related to participants of the funds and finalizing the settlements on the T2S platform
- Modification of certain provisions regarding the processing of payment events in connection with financial instruments deposited in the SaFIR system (the system for depositing government bonds) for which the Central Depository is an investor depository
- Modification of provisions regarding the documents and information necessary for the registration of a direct transfer as an effect of the liquidation of an entity holding financial instruments for which the Central Depository is the issuing depository
The amendments and completions to the CSD Code of Rules approved by FSA Decision no. 987 / 20.08.2020, will enter into force starting with 04.09.2020.
Impact on investors: The updates were made for a better alignment with the general applicable legal framework.