On 10 December the draft of a Government Emergency Ordinance (“GEO”) with regard to the establishment, organisation and function of the Financial Supervisory Authority (“FSA”) (the “Draft GEO”) was released for public consultations on the website of the Ministry of Public Finance. The FSA will take over the supervision and regulation of the insurance, securities and private pensions sectors from the Insurance Supervisory Commission (“ISC”), National Securities Commission (“NSC”), and National Private Pensions System Supervisory Commission (“PPSSC”).
In the Romanian Government’s view, the new authority is necessary in order to provide better financial supervision of the regulated sectors outside the regulatory competence of the National Bank of Romania (i.e. insurance, securities and private pensions).
The Draft GEO indicates 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 new authority 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.
As part of the legislative process, after the expiry of the public consultation period (10 days from its release) this GEO needs to be approved by the Government, and published in the Official Gazette so as to produce effects. As the Draft GEO indicates, the new authority is expected to replace the ISC, NSC and PPSSC as of 15 March 2013.
A detailed analysis of the FSA will be released on Law Now at the date of publication of the GEO in the Official Gazette.
The Draft GEO is available for consultation, in Romanian, here.