Capital Market Regulations Amendments

The Financial Supervisory Authority’s Board approved Regulation No. 11/2015, which amends the following capital market regulatory acts originally enacted by the former National Securities Commission (CNVM):

• CNVM Regulation No. 13/2005 on the authorization and the functioning of the central depository, of clearing houses and central counterparties;
• CNVM Regulation No. 32/2006 on financial investment services;
• CNVM Regulation No. 5/2010 on the use of the omnibus account system, the pre-trade securities validation mechanism, securities lending, posted collateral and short sales;
• CNVM Regulation No. 1/2006 on issuers of and operations with securities;
• CNVM Regulation No. 6/2009 on the exercise of certain rights of shareholders in companies' general meetings;
• CNVM Regulation No. 4/2009 on the public register of the National Securities Commission;
• CNVM Regulation No. 3/2015 amending and supplementing CNVM Regulation No. 1/2006 on issuers of and operations with securities and CNVM Regulation No. 6/2009 on the exercise of certain rights of shareholders in companies' general meetings.

Regulation No. 11/2015 additionally introduces:

• changes that allow the Central Depository to be more involved in providing support for the processing of issuers’ corporate events;
• the notion of "guaranteed participation date”;
• list of corporate actions events;
• additional provisions and clarifications related to the shareholders’ rights to withdraw from a company in the event of merger or split;
• new rules related to the process of delisting a company from the market;
• the possibility to trade allocated rights;
• specific provisions for companies that are traded on an alternative trading system.

The provisions of Regulation No. 11/2015 will be incrementally coming into force until 1 September 2017.

Impact on investors: The capital market regulations amendments enacted by FSA are aimed at improving the quality of the Romanian capital market.