The Romanian Financial Supervisory Authority (ASF) formed a new department to actively monitor the unauthorized companies offering investment and other financial services in the country.
According to multiple local news outlets, the new wing was formed by amending the existing regulatory frameworks, which came into effect on August 1.
This came about due to the increasing complaints from Romanian citizens against several unauthorized brokerages offering complex schemes. Additionally, the ASF has received complaints from regulated companies for many years, regarding unfair market advantages.
Notably, the number of unauthorized platforms has even surpassed the regulated entities operating in Romania.
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The local report also highlighted that many of these brokers are not even permitted to offer their services anywhere in Europe.
As a result, the newly formed monitoring body will have multiple roles in expunging illegal operators from the market. It will analyze the petitions received by the regulator and also identify and monitor entities operating in the country without authorization. Further, the department will collaborate with international counterparts and also local institutions to obtain additional information on these unregulated entities.
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The new department becomes operational only within a month of its newly appointed ASF’s President, Nicu Marcu. It was formed because of the efforts made by Vice President Gabriel Gradinescu.
As a consequence, the formation of this monitoring body will not only strengthen local investors’ confidence but will also have a positive effect on the industry as a whole.
Meanwhile, other European regulators are actively flagging unregulated brokers and trading platforms. Italian CONSOB, CySEC, and the UK’s FCA have maintained long lists of blacklisted firms. They are also taking disciplinary actions against unregulated companies.