Govt wants additional supervision for financial conglomerates

As of next year, financial groups will be under additional supervision from one of the three authorities that currently share supervisory powers – the NBR, the CSA (Insurance Supervision Commission) and the CNVM (National Securities Commission), reads a law draft enacted by the Government. Credit institutions, insurance companies, reinsurance companies, financial investment companies and investment management companies belonging to a “financial conglomerate” will be subject to additional supervision starting next year, according to the law draft. “The additional supervision is exerted by a coordinating authority designated from among sectorial supervision authorities,” reads the draft law. In other words, the National Bank of Romania, the National Securities Commission and the Insurance Supervision Commission will have new supervisory powers, depending on the parent company of every financial group, according to the draft adopted by the Government.