When it comes to financial markets, trust is the most important ingredient, president of the Financial Supervisory Authority (ASF) Alexandru Petrescu told the Business Law Conference on Friday.
"Once we have gained trust, all the other benefits derive from this. There are less possibilities for speculative transactions and the economic foundation is created for growing vectors of evolution and develop financial markets. There are many things we aspire to as a national financial market ecosystem, but there are also some elements we already stand by and we are anchored in a series of corporate governance principles and rules," said the ASF president.
According to Petrescu, the ASF has already implemented the principles and rules regarding corporate governance, particularly on the three markets it regulates - insurance, the stock market, and the privately managed pension sector.
From his point of view, Romania has the hallmarks and characteristics of an "incipient capital market", because reporting should not be considered a punitive obligation. Petrescu argues that reporting only consecrates the concept of transparency and its effect is that more capital and more investors are attracted.
"The Romanian capital market is dominated by two sector rules, the banking and the energy sector, and the listed companies operating in these sectors easily fit into the requirements of the reporting directive. On the other hand, we see many small and medium-sized companies that either transition from the Aero market to the regulated market, or enter it at least for financing, by issuing various types of bonds and securities; in their turn, these entities need to fit into the future conditionalities of this directive," the head of the ASF also said.
"In the United States, 80% of businesses are financed from the capital market, but in Europe the percentage is reversed. Just 20% of the European companies interact in one way or another, for their financial needs, with the capital market. In Romania the situation is even a little more dramatic, and I hope that more sectors besides the dominant ones - energy and banking - find their place for financing and trading on the capital market," concluded Alexandru Petrescu.
The Law Faculty of the University of Bucharest, Piperea and Associates Attorneys at Law and the Romanian Society for Research on Public and Private Affairs (SOROCAPP) organized on Thursday and Friday the 16th edition of the Business Law Conference titled "On the challenges of law and the risks to the market economy in the era of successive and overlapping crises".
The event was attended by Romanian and foreign experts from the academic and judicial environment. The conference was divided into four panels that alternated with four workshops. The topics of the sections and practical workshops focused on artificial intelligence, insolvency and restructuring, corporate governance, taxation / legal challenges and solutions of the industry, and transport law.
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