The Board of the Financial Supervisory Authority (ASF) has decided at the meeting on Wednesday to abolish the application of 1% quota on the operating income for local intermediaries – financial investment services companies and credit institutions registered in the ASF Register as intermediaries, the measure will come into force as of October 1, 2017.
According to a press release, the amendment to Regulation no. 16/2014 regarding the ASF revenues, which stipulates this obligation, had the main objective to stimulate and support the activity of the intermediary companies registered in Romania on the capital market.
“We have made this decision in order to offer the Romanian companies a treatment similar to that enjoyed by the authorized intermediaries in other EU Member States. We consider this measure to be correct and is part of the ASF market development mission that it supervises,” ASF President Leonardo Badea said.
ASF is the national authority set up in 2013 by OUG 93/2012 approved by Law 113/2013 for the regulation and supervision of insurance markets, of private pensions and of the capital market. ASF contributes to the strengthening of the integrated operating framework of the three sectors, which adds over 10 million participants.
Factor ‘N’ value agreed upon
The ASF Board also approved during Wednesday’s meeting the value of the factor ‘N’ as established by the Romanian Motor Insurers’ Bureau (BAAR) in accordance with the Procedure for the management of compulsory auto insurance (RCA) for the high risk policyholders.
“Following BAAR’s application of the two methods described in the Procedure for BAAR’s management of high-risk RCA policyholders, a factor of 1.3593 was derived and by rounding the number, it results a final value for factor ‘N’ of 1.36,” the communiqué reads..
According to the quoted source, the value of factor ‘N’ factor of 1.36 shows that a person who receives from at least three insurers different offers whose RCA insurance premiums are by 36% higher than the reference rate for the risk segment he is included in, is part of the high-risk insurance category and may request BAAR an offer to conclude an RCA contract. High-risk policyholders will receive from BAAR an offer with the price calculated by multiplying the reference tariff by 1.36 and by the Bonus/Malus coefficient class.