Press release: The ASF Council approved the draft regulatory act amending and supplementing the capital market legislation

Bucharest, 28 February 2024 - The Council of the Financial Supervisory Authority (ASF) approved, in today's meeting, a draft regulatory act aimed at amending and supplementing capital market legislation, as well as establishing measures to prevent advertising and aggressive communication techniques practiced by entities that are not registered with ASF.

            The draft regulatory act is in line with ASF’s strategy of updating and continuously improving capital market legislation and aligning it with European legislation. At the same time, the proposals approved by the ASF Council aim, on the one hand, at developing the capital market and improving investor protection, and, on the other hand, at strengthening the role of the Authority.

This legislative initiative is intended to contribute to the achievement of the general and specific objectives included in the ‘ASF Strategy for Capital Market Development 2023-2026’.

            Among the most important changes and additions to the legislation governing the capital market are:

• introducing the possibility of financing small and medium-sized enterprises by the categories of professional clients mentioned in Law No. 126/2018 (e.g. entities authorised, regulated and supervised by ASF) with positive effects on supporting the development of SMEs, including through the possibility of accessing non-reimbursable European funds;
• introducing measures aimed at de-bureaucratising/simplifying the legal framework applicable to the authorisation, organisation and operation of collective investment undertaking managers;
• introducing the possibility of ASF approval of a prospectus if a local government authority intends to make a public offer of debt securities or intends to admit debt securities to a regulated market with positive effects on the development of the domestic bond market, by broadening the investor base in such instruments and increasing the transparency of bond issues;
• regulating the possibility for Financial Investment Services Companies (FISC) to be promoted without a professional title and by persons other than THE FISC staff and delegated agents, within the framework of dedicated campaigns and under certain conditions;
• combating misleading advertising and aggressive communication techniques practised by entities that are not registered with ASF by restricting access from Romania to the websites of these unauthorised entities promoting misleading investment services.

            During the necessary stages of the preparation of the draft regulatory act, extensive consultations were organised at the level of ASF both with representative professional/industry associations and with representatives of the capital market infrastructure, in order to analyse and agree on the proposals that are the subject of the draft regulatory act, so that the measures to be adopted will contribute to the proper functioning of the capital market.

The amendments to the legislation covered by the draft regulatory act are to be submitted to the Ministry of Finance. The draft will be subject to public consultation and will then go through all other stages of the legislative process.

The main changes to capital market legislation covered by the draft regulatory can be found here.