On 21 April 2021 the Law on Investors Compensation Fund (ICF) was published in the Official Gazette and will enter in force in 60 days.
The main novelty brought by the Law refers to the change of the legal status of the administrator of the guarantee scheme from joint venture company to legal person governed by public law. This allows the process of consolidating an integrated framework for the functioning and supervision of the markets and ensures a better supervision by the Financial Supervisory Authority (FSA). The Fund will be managed by representatives of FSA, the Ministry of Finance and the members of the compensation scheme.
The ICF is the continuator and legal successor in rights and obligations of the former Compensation Fund set up as a joint stock company.
The Law contains provisions regarding the organizational and personnel structure, the handover-receipt protocol, the financial resources, the types of contributions, income and costs.
The provisions of the EU Directive 97/9, on the investor compensation systems have been transposed into the national legislation since 2004, within the Law regarding the capital market. Therefore, this law does not have as a purpose the transposition of the European legislation and supersedes the provisions of the previously mentioned law in the new normative, without any modification.
Impact on investors: No direct impact on investors. The new Law on Investors Compensation Fund brings more transparency on the use of the resources and avoids the conflict of interest in the decision-making process.