Romania’s Financial Regulatory Bodies Keep Busy with New Rules and Standards
In recent months, Romania’s financial regulatory bodies have been busy implementing new rules and standards to strengthen the country’s financial landscape. From ecological financial instruments to payment incidents registry and investment firm practices, here are some key developments that you should know about.
Ecological Financial Instruments
The Romanian government has issued a new ordinance regulating standards for “ecological” financial instruments, which include support instruments for financial products such as loans, guarantees, and counter-guarantees. These instruments must observe the EU’s taxonomy criteria set out by Regulation (EU) 2020/852, and financial support through environmental financial instruments is restricted to specific economic activities following technical criteria in EU Delegated Regulation 2021/2.
Payment Incidents Registry
The National Bank of Romania (NBR) has also issued a new regulation for the Payment Incidents Registry (PIR), which manages a database comprising the National Payment Incidents File (FNIP) and the National File of Persons at Risk (FNPR). Reporting entities must provide information on major and minor payment incidents, and credit institutions must notify payers in case of a major check-related incident leading to a banking restriction.
Key Requirements
- Reporting entities must provide information on major and minor payment incidents
- Credit institutions must notify payers in case of a major check-related incident leading to a banking restriction
Investment Firm Practices
The Financial Supervisory Authority (FSA) has introduced key changes in investment firm practices implementing ESMA guidelines. The regulation reflects and implements the ESMA guidelines on certain aspects of the MiFID II suitability requirements, dated April 3, 2023.
Key Features
- Redefined distinction between active and inactive clients
- Clarification of investment firm obligations to review business continuity plans
- Removal of prudential requirements in light of Law no. 236/2022 on prudential supervision of investment firms
Exchange Regulation Amendments
The NBR has amended its exchange regulation, imposing an obligation for certain financial entities to monitor compliance with exchange control requirements.
Key Requirements
- Credit institutions, e-money issuers, payment institutions, and non-banking financial institutions must verify that transactions between Romanian residents are performed in the local Romanian currency (leu), subject to applicable exemptions
These new rules and standards demonstrate Romania’s commitment to strengthening its financial regulatory framework and promoting a more sustainable and secure financial environment for its citizens.