Download Updates on Romanian private pension funds legislation On 22 July

Updates on Romanian private pension
funds legislation
On 22 July the Romanian Financial Supervisory Authority (“FSA”) Norm 1 of 2013,
regulating the archive activity of private pensions administrators (“Norm 1/2013”), and the
FSA Norm 2 of 2013 modifying Norm 3 of 2012 regulating the temporary modification of the
upper limit applicable to private pensions investments in state bonds (“Norm 2/2013”) were
published in the Official Gazette.
In an effort to make the secondary private pensions legislation compliant with the legislation
regulating the archive activity, Norm 1/2013 sets forth clearer rules regarding the archive
activity of the private pension funds administrators as follows:
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the administrators of private pension funds have an obligation to: (i) designate the
employees who have to manage the archiving activity (in accordance with the
provisions of Law 16 of 1996 regulating the National Archives activity – “Law
16/1996”); and/or (ii) establish archive departments within the company, depending
on the complexity and quantity of the documents created or held;
an internal selection commission of the administrator will assess each archive unit
annually (or as often as deemed necessary), determining its practical or historical
value as per the applicable provisions;
the documents will be assembled in archive units in accordance with the internal
classification, approved by the National Archives;
the FSA must be notified within 10 business days after the required approval/ permit
was obtained from the relevant authority by the private pension funds administrators
with regard to: (1) approval of archive deposit and employees by the National
Archives; (2) approval of internal archive classification by the National Archives; (3)
placing the archive units for permanent deposit with the National Archives; (4)
removal of specific documents from the archive evidence; (5) contracting with an
archive services provider, observing the provisions of Law 16/1996; (6) contracting
with an electronic archive services provider, observing the provisions of Law 135 of
2007 regulating the documents electronic archiving; and
the administrators of private pension funds have to inform the FSA as soon as possible
about the occurrence of unexpected changes or events affecting the integrity of the
archive.
It is expected that Norm 1/2013 fills the current gaps existing in relation with the archive
activity in the field of private pension funds management. The industry’s response is
anticipated after the actual implementation of Norm’s provisions.
By Norm 2/2013, the FSA permitted the private pensions administrators to invest in state
bonds issued by the Romanian Ministry of Finance and by the EU and EEA member states,
above the maximum allowed legal threshold of 70% of the total value of pension fund assets.
This is a temporary measure and will be effective until 30 June 2014.
It is further regulated that within 180 days of 30 June 2014, the administrators have to comply
with the maximum allowed legal threshold of 70% of the total value of pension fund assets, as
well as with the investment limits set out by the prospectus of the pension fund.
For further information, please contact:
Marius Petroiu
Bucharest
+40 21 407 38 89
Florentin Giurgea
Bucharest, Romania
+40 21 407 3952