The Romanian Financial Supervisory Authority (“FSA”) recently adopted a new norm to regulate the authorisation and monitoring of insurance and reinsurance undertakings doing business in Romania (“Norm 20/2016”). This new norm is part of the FSA’s efforts to adapt the Romanian legal framework to the requirements of Solvency II. Norm 20/2016 became effective on 11 April 2016.
Of note, Norm 20/2016 regulates:
- capital requirements for insurance/reinsurance undertakings;
- requirements for prior approval by the FSA of changes to the constitutive deed for such undertakings;
- requirements for carrying out insurance activity in third states;
- requirements for a mandatory yearly business plans which must cover the next three years;
- the obligation to use the LEI code in all documents issued by the insurance/reinsurance undertaking;
- the merger, spin-off and portfolio transfer processes for undertakings supervised under the Solvency II regime;
- the prohibition of undertakings supervised under the national regime to write catastrophe risks;
- requirements for undertakings which conduct insurance activity based on the freedom of establishment and freedom of services and fall under the scope of Solvency II;
- the dissolution and voluntary liquidation of insurance/reinsurance undertakings.
Norm 20/2016 also contains transitory provisions regulating its relevance/application to files/requests registered with the FSA before its entry into force.
In the coming weeks we expect the FSA to enact further additional rules needed to ensure compliance with the Solvency II framework.