New Financial Supervisory Authority regulated in Romania

In the Official Gazette no.874 of 21.12.2012 the Government Emergency Ordinance no. 93/2012 (“GEO”) with regard to the establishment, organization and function of the Financial Supervisory Authority (“FSA”) was published. The FSA will take over the supervision and regulation of the securities, insurance and private pensions sectors from the Insurance Supervisory Commission (“ISC”), National Securities Commission (“NSC”), and National Private Pensions System Supervisory Commission (“PPSSC”).

The aim behind this new specialized autonomous administrative body is to provide better financial supervision of the regulated sectors outside the regulatory competence of the National Bank of Romania (i.e. private pensions, insurance and securities).

The GEO stipulates that by no later than 15 March 2013, the FSA should take over the patrimony of the ISC, NSC and PPSSC. It also indicates that the employees of the ISC, NSC and PPSSC will be transferred to the FSA. By no later than 15 March 2013, the above mentioned authorities will be dissolved and all their obligations shall be transferred to the FSA. Until then the ISC, NSC and PPSSC will continue to carry out their activities.

The FSA will replace and take over from the ISC, NSC and PPSSC any rights and obligations derived from legal norms, contracts, conventions, understandings, protocols, memoranda and agreements, as well as any pending litigations. Any documents issued by those three authorities before 15 March 2013 will maintain their validity.