CNVM forces Property Fund to do in 45 days what it hasn't done in 5 years

After five years during which it operated outside the capital market, Property Fund (FP) has a 45-day deadline, until 9th of April, to register with CNVM. The stake is represented by the 12.2m RON (3m euros) fees the capital market arbiter should collect annually from the fund’s assets. On 23rd of February, CNVM took FP by surprise by conditioning the coming into effect of the management contract with Franklin Templeton on FP’s registering with CNVM in the Other Collective Investment Institutions category. Moreover, the Commission imposed a 45-day deadline for the fund to submit documentation. “The fund impacts the capital market and it has to be registered with the Commission. Our obligation is to maintain an ordered market. Through the imposed deadline, we want to speed up the fund’s floatation,” said Bogdan Chetreanu, a commissioner with CNVM. “CNVM has no legal basis to condition the management contract’s coming into effect. (…) This conditioning makes no sense, except if it’s in the Commission’s interest for the fund to be registered,” stated law market sources.