Changes Ahead For Investment Firms

• Published date: 22 September 2023
• Law Firm: Schoenherr Attorneys at Law
• Author: Ms Veronica Alexeev

The Romanian Financial Supervisory Authority (FSA) released for public consultation a draft regulation proposing amendments to its Regulation 5/2019 applicable mainly to investment firms and, in limited cases, to credit institutions providing investment services and/or activities and alternative fund managers.

Changes are proposed in a broad spectrum of areas. We have taken stock of the FSA proposals and summarised key changes below. Overall, the draft regulation introduces a more robust framework for oversight in areas of corporate governance, reporting requirements, conduct of business (with a focus on management of transaction settlement defaults and margin trading), cross-border provision of services into G7 third countries, and integration into national law of a series of (updated) ESMA Guidelines on adequacy, suitability and remuneration.

The full text of the draft regulation and the justification document can be accessed here. The consultation period expires on 22 September 2023. Any notes or comments to the proposed changes can be submitted via the online Public Consultation Platform.

• Corporate governance. An obligation is introduced for investment firms to ensure that where a member of the executive body is unable to perform their duties...