On 22 July the Romanian Financial Supervisory Authority (“FSA”) Norm 1 of 2013, regulating the archive activity of private pensions administrators (“Norm 1/2013”), and the FSA Norm 2 of 2013 modifying Norm 3 of 2012 regulating the temporary modification of the upper limit applicable to private pensions investments in state bonds (“Norm 2/2013”) were published in the Official Gazette.
In an effort to make the secondary private pensions legislation compliant with the legislation regulating the archive activity, Norm 1/2013 sets forth clearer rules regarding the archive activity of the private pension funds administrators as follows:
- the administrators of private pension funds have an obligation to: (i) designate the employees who have to manage the archiving activity (in accordance with the provisions of Law 16 of 1996 regulating the National Archives activity – “Law 16/1996”); and/or (ii) establish archive departments within the company, depending on the complexity and quantity of the documents created or held;
- an internal selection commission of the administrator will assess each archive unit annually (or as often as deemed necessary), determining its practical or historical value as per the applicable provisions;
- the documents will be assembled in archive units in accordance with the internal classification, approved by the National Archives;
- the FSA must be notified within 10 business days after the required approval/ permit was obtained from the relevant authority by the private pension funds administrators with regard to: (1) approval of archive deposit and employees by the National Archives; (2) approval of internal archive classification by the National Archives; (3) placing the archive units for permanent deposit with the National Archives; (4) removal of specific documents from the archive evidence; (5) contracting with an archive services provider, observing the provisions of Law 16/1996; (6) contracting with an electronic archive services provider, observing the provisions of Law 135 of 2007 regulating the documents electronic archiving; and
- the administrators of private pension funds have to inform the FSA as soon as possible about the occurrence of unexpected changes or events affecting the integrity of the archive.
It is expected that Norm 1/2013 fills the current gaps existing in relation with the archive activity in the field of private pension funds management. The industry’s response is anticipated after the actual implementation of Norm’s provisions.
By Norm 2/2013, the FSA permitted the private pensions administrators to invest in state bonds issued by the Romanian Ministry of Finance and by the EU and EEA member states, above the maximum allowed legal threshold of 70% of the total value of pension fund assets. This is a temporary measure and will be effective until 30 June 2014.
It is further regulated that within 180 days of 30 June 2014, the administrators have to comply with the maximum allowed legal threshold of 70% of the total value of pension fund assets, as well as with the investment limits set out by the prospectus of the pension fund.