ASF expresses concern about possible measures that could undermine the supervision of non-bank financial markets

Bucharest, 22 August 2025 - Considering the measures proposed in the Draft Law amending and supplementing Government Emergency Ordinance No. 109/2011 on corporate governance of public enterprises and certain measures to streamline the activity of certain autonomous administrative authorities, we consider it necessary to clarify certain essential aspects regarding the role and functioning of ASF.

The ASF restructuring measures are required in the context of the Romanian Government's efforts to reduce the budget deficit, without, however, resulting in an improvement in macroeconomic indicators, as ASF does not use financial resources from the state budget. Furthermore, ASF is a net contributor to the budget, transferring contributions amounting to RON 53.5 million in 2024 and estimating a total contribution of up to RON 85 million in 2025, based on its obligation to pay 33% of its current revenues.

These proposed measures have the potential to induce systemic risks in the performance of the Authority's fundamental functions, namely regulation, authorization, supervision, and control of the non-banking financial market in Romania and its alignment with European standards in this area.

Currently, non-bank financial markets (insurance, capital markets, private pensions), both at European level and in Romania, operate in an environment of unprecedented complexity and interdependence, which requires integrated, permanent, and independent supervision.

In addition, the European regulatory framework has expanded substantially and continuously, including in areas such as digital operational resilience, sustainability, artificial intelligence, and digital assets (the European MiCA regulations—the first European legislative framework dedicated to regulating cryptocurrencies, DORA – aimed at strengthening the digital operational resilience of financial entities, and the AI Act – the first law regulating the responsible use of artificial intelligence). This requires national supervisory authorities to supplement their resources and expertise to implement the new rules and monitor compliance with them appropriately.

In such a context, the strict quantitative imperative to reduce human resources in ASF will inevitably and immediately affect the Authority's ability to ensure the stability of the non-banking financial system, given that the overwhelming majority of expertise profiles within ASF are specialized in the field managed and not of a support nature, in the classic sense. This structure is characteristic of financial regulatory and supervisory institutions in EU Member States (national banks, national supervisory authorities).

Furthermore, the substantial salary cuts envisaged would mainly affect specialists, i.e. precisely the professional category that has accumulated over the years the expertise that is indispensable for managing financial markets of particular complexity. This expertise, which is the result of lengthy training, forms the basis for the institution to fulfill its duties in relation to the non-banking financial market.

Therefore, these administrative restructuring measures proposed in the draft law will lead to the deterioration of the functioning of essential internal structures, jeopardizing the fulfillment of the legal mandate and obligations under European Union law, including those relating to investor protection and the prevention and combating of money laundering.

The same concerns of ASF were clearly expressed by the authorities within the European System of Financial Supervision in a joint position addressed to the Romanian Ministry of Finance in July 2025, in response to the Romanian Government's initiative to restructure ASF. In their intervention, the European authorities insisted on the importance of ensuring the independence of ASF and of financial resources aligned with operational needs and market circumstances, aspects that are subject to constant evaluation by these European institutions.

ASF remains firmly committed to the principles of good governance and will continue, in 2025, the process of institutional streamlining and consolidation begun in 2024. This initiative has already been reflected in a reduction in the total number of posts to 493 (compared to 535 in 2023), a level comparable to that of a decade ago, as well as in a decrease in the individual income of the Authority's staff by approximately 20% in 2024. ASF has also started to roll out a big institutional digitalization process, funded by the EU, which will really improve how ASF works at all levels.

ASF reaffirms its commitment to exercising professional, independent supervision in line with European standards, and to this end has submitted proposals for amendments to the draft law on the restructuring of the institution, with a view to consolidating the organizational optimization process that began in 2024. This move aims to ensure the maintenance of the operational and institutional capacity necessary for the proper exercise of its legal powers, including the new responsibilities that will result from the development of the European regulatory framework in this area.