On 23 April 2013, Law no. 113 approving Government Emergency Ordinance no. 93/2012 (“GEO 93/2012”) dealing with the establishment, organization and function of the Financial Supervisory Authority (“FSA”) was enacted.
As reported in Law-Now the FSA was established as a response to irregularities noted in the activity of the securities and insurance regulators. The principal aims were to provide better financial supervision of entities active in these industries and to effect cost reduction through merging three regulators into one.
The FSA is deemed to commence its activity as of 30 April 2013. From this date, the FSA will assume all functions (including supervisory and regulatory) from the previous respective securities, insurance, and private pensions regulators in Romania, i.e. the National Securities Commission (“NSC”), the Insurance Supervisory Commission (“ISC”) and the National Private Pensions System Supervisory Commission (“PPSSC”), all of which will cease to exist.
However, any documents issued by the NSC, ISC or PPSSC before 30 April 2013 will remain valid. Further, the primary and secondary legislation regulating the securities, insurance, and private pensions industries will remain in force, with FSA as regulator for each industry.
The FSA is managed by a board of seventeen members, five executive members (one president, one primary vice president, and three vice presidents) and twelve members. The members of the FSA board are appointed by the Parliament for a five year mandate and need to meet several criteria in order to qualify for the position (e.g. professional experience, university degree, no membership with a political party during the mandate; share ownership of more than 5%, and/or directorship, and/or management, of certain legal entities is prohibited). The FSA board can validly pass decisions with the vote of half plus one of its members.
It is expected that the FSA board will further establish its organizational scheme and internal rules in the coming months, by enacting regulations in this regard. A more detailed reaction of industry representatives is expected upon actual commencement of FSA activity, and enactment of its first regulations.