The investment fund sector in Romania has managed, in recent years, to demonstrate its maturity, to gain the trust of investors and to contribute increasingly more consistently to the development of the capital market, Gabriel Avramescu, first deputy chairman of the Financial Oversight Authority (ASF), said on Thursday at the 7th edition of the Summit of Fund Managers.
"The investment fund sector in Romania has managed, in recent years, to demonstrate its maturity, to gain the trust of investors and to contribute increasingly more consistently to the development of the capital market. Recent results confirm this positive trajectory: the growth of assets under management, the diversification of investment products and the expansion of the investor base are clear signs that investment funds are increasingly positioned to meet the needs of the economy and society. In addition, investors' interest in professionally managed savings and investment solutions is growing, which opens up new opportunities for the industry," Gabriel Avramescu.
He added that, in this context, the role of the Financial Oversight Authority is to be not only a market supervisor, but also an active partner of the industry.
"We strongly believe that the development of investment funds depends on a regulatory framework that is solid, but at the same time flexible and adapted to economic realities."
Avramescu said that an important step in this direction was recently taken by the government passing a bill transposing the EU's Directive on alternative investment fund managers, a legislative approach to which ASF specialists had a substantial contribution.
The ASF official added that this project brings concrete and consistent benefits to investment fund managers and mentioned some of them, including the extension of the scope of activity - alternative investment fund managers will be able to grant loans to companies, which gives them a new dimension and allows them to play a more active role in financing the economy. He mentioned that the change aligns the local industry with European practices and opens access to new business opportunities.
The second aspect regards the diversification and modernisation of the role of administrators. Under this new framework, managers are no longer just passive investment vehicles, but they can become actors directly involved in supporting capital and boosting entrepreneurial initiatives. More specifically, it expands the list of ancillary services that an AIFM can provide in addition to its core activities.
The third aspect regards the simplification of the regulation for investment management companies (SAI); by removing the obligation to have a reciprocity agreement, investment management companies have easier access to cross-border opportunities, enjoying greater freedom to develop and attract investors.
"Last but not least, I would talk about improving investor protection. The directive clarifies and strengthens the responsibilities of managers, increasing transparency and giving investors more confidence," said Avramescu.
He added that these benefits create the premises for a more dynamic, attractive and competitive market, capable of contributing to the growth of the Romanian economy and to the deeper integration into the European capital market.
"I would also like to point out that yesterday the ASF Council approved and published today for public consultation the draft Regulation amending and supplementing the ASF Regulation 7/2020 on the authorisation and operation of alternative investment funds. The purpose of the project is to provide more clarity and predictability in the application of the legal framework, to the benefit of market participants, and also to simplify and standardise the procedures for authorisation and operation of alternative investment funds, reducing the risk of non-unitary interpretations. I want to emphasise, however, that regulation is not a unilateral process. ASF remains in constant dialogue with investment fund managers, and your experience and suggestions are extremely valuable in order to calibrate the regulations so as to meet the real needs of the market. We are aware that only through open collaboration can we create a regulatory framework that not only protects investors, but it also stimulates the development of the industry," said Avramescu.
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