The Romanian Financial Supervisory Authority (ASF) has 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 has been formed by amending the existing regulatory frameworks, and it came into effect on August 1.
This came with the increasing complaints from Romanian citizens against several unauthorized brokerages offering complex schemes. The ASF also received complaints from regulated companies for years regarding unfair market advantages.
Notably, the number of unauthorized platforms 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 in any European level.
The newly formed monitoring body will have multiple roles in cleansing the illegal market operators. It will analyze the petitions received by the regulator and also identify and monitor entities operating in the country without authorization. The department will also 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 the joining of its new ASF’s President Nicu Marcu and was formed by the efforts of Vice President Gabriel Gradinescu
The formation of such a monitoring body will not only strengthen local investors’ confidence, but will also have a positive effect on the industry as a whole.
Meanwhile, the other European regulators are actively flagging unregulated brokers and trading platforms. Italian CONSOB, the CySEC, and the UK’s FCA have maintained long lists of blacklisted firms and are also taking disciplinary actions against the regulated companies.