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The Message of the President of the Financial Supervisory Authority, Mr. Nicu Marcu, addressed within the Funds Administrators Summit in Romania

The Message of the President of the Financial Supervisory Authority, Mr. Nicu Marcu, addressed within the Funds Administrators Summit in Romania,

presented by the Director of the Directorate of Communications and Interinstitutional Relations of the Authority, Mr. Daniel Apostol

 

23rd of September, 2020

Dear Minister-Secretary of State,

Mr. Horia Gusta,

Dear participants,

Ladies and Gentlemen,

please allow me convey the message of the President of the Financial Supervisory Authority, Mr. Nicu Marcu: 

 

„First of all, I must salute, on this occasion, BVB’s achievement, the winning of the status of emerging market. For the Romanian economy and for the domestic capital market are opened, therefore, new perspectives, tangible, for the development of the Romanian economy. The capital market must become the engine of the economy, standing as a financing source to the companies, as well as an investment place for the insurance companies, namely for the pension funds, which can lead directly and indirectly to the economic growth of Romania. 

I’m pointing out, today as well, that the Bucharest Stock Exchange should become a strategic regional hub for other financial markets within the South East European space. Greater liquidity is needed for this, and it can be obtained by providing quality assets, through a more active involvement of the Romanian State in the development of this financial sector. 

The elaboration of a national strategy for the capital market is one of the important projects that the Authority promotes, in partnership with the Ministry of Public Finances, for the settlement of a coherent framework for the development of the capital market and for enabling the access to financing, for all types of investors.  

I hereby remind to you, also, that the Financial Supervisory Authority’ main objective is the provision of stability, competitiveness and good operation of the financial instrument markets, promotion of confidence in these markets and in the investments in financial instruments, as well as providing protection of the operators and investors against unfair, abusive and fraudulent practices.   

It is, however, a good moment to tell you that the Financial Supervisory Authority analyses the manner in which the technology has converted the products and services in order to promote the lasts practices in the field.

In a both global and European macroeconomic contexts, heavily affected by uncertainties, the setting of favorable conditions, less bureaucratic and costly (i.e. the introduction, by the Financial Supervisory Authority, of the possibility to subscribe the fund units by internet) for the investment funds and the consumers, can help this industry develop, with positive impact also on other segments of the financial market (i.e.: Stock exchange).

Among the capital market segments, in the last few years, the collective investment undertakings market had a more accelerated growth and enjoyed a significant increase of the long-term managed assets, despite the turmoil generated by COVID-19.

Although the market is still dominated by the fixed income instrument funds, lacking the level of sophistication and diversity of accumulation and investment products encountered on the more developed markets, the importance of the investment funds industry in the saving process should be emphasized, particularly in terms of a financial environment characterized by low rates of the interests.  

Another important element that can lead to the development of the investment funds industry is the increase of the level of financial inclusion. In this respect, the Financial Supervisory Authority also analyses the manner in which the technology has converted the products and services for the promotion of the latest practices in the field meant to support the development of the nonbanking financial markets, by diversification of the products and possibility to use the best technologies.

By this approach, we want to make sure that both natural persons and small businesses benefit from affordable and effective financial services.    

That being said, I wish good luck to all investors in Romania”.