Romanian ASF Forms New Wing to Crackdown on Unregistered Brokers

Friday, 07/08/2020 | 11:23 GMT by Arnab Shome
  • The number of unregistered entities exceeded regulated firms in the country.
Romanian ASF Forms New Wing to Crackdown on Unregistered Brokers
FM Studio

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.

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.

New leadership Is Focusing on Cleansing the Market

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.

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.

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.

New leadership Is Focusing on Cleansing the Market

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.

About the Author: Arnab Shome
Arnab Shome
  • 6425 Articles
  • 85 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6425 Articles
  • 85 Followers

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