New rates for bond transactions and government securities
New rates for bond transactions and government securitiesUpdated on Sunday 17th April 2016
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The Romanian Financial Supervisory Authority (FSA) is taking new measures to attract foreign investors in Romania. The S.T.E.A.M program is a special program that contains an action plan for obtaining the status of emerging market. The newly implemented changes are the first steps included in this plan and they were specifically made in order to increase the market liquidity and attract investors to the capital market.
The Romanian Financial Supervisory Authority plans to attract foreign investors to the capital market by reducing the rates of fees levied for bond transactions and transactions of government securities. According to the new changes, the fees for bond transactions, including those convertible into shares, will be reduced by 50%, up to a value of 0,02% and the fee for the value of transactions in government securities will be removed completely.
The rate for monitoring transactions performed outside the regulated markets/ alternative trading systems will be reduced from 0,15% to 0,06% of the value of the reported transactions. Also, the rate for transactions performed outside the regulated markets and/or the alternative trading systems, such as turnaround transactions, will be reduced by 50%, from 0,04% to 0,02%.
The reduced rates will apply as of 16 September 2014.
Other changes made by the FSA
The Romanian Financial Supervisory Authority adopted a series of additional amendments to the secondary legislation in order to remove obstacles that were blocking the development of the capital market.
The FSA now allows for the prospectus to be drawn up in a widely spoken language. Other changes include the elimination of the provisions regarding a minimum duration for the offer or specific provisions that clarify certain rights of the offeror/issuer. The documentation/procedures related to these offers have been simplified: certain documents that needed to be submitted to the FSA are not required anymore and the results of the offer do not need to be communicated to the FSA within a specific time-frame.
The Romanian Financial Supervisory Authority intends to further improve the legislation in order to allow a sustainable development of the market and provide investor-friendly regulations. Our Romanian accountants can help you with more information about investing in Romania.