The document discusses the non-banking financial markets in Romania in 2015. It provides an overview of the key non-banking financial sectors, including insurance, private pensions, investment funds, and capital markets. It notes that the non-banking financial market assets represented approximately 29% of total banking and non-banking financial assets in Romania in 2015. The document also discusses measures taken by the Financial Supervisory Authority to improve consumers' protection and financial education.

1. ACADEMIC LABORATORY
Let’s talk about non-banking financial market
JULY 2016

2. Cuprins
01. Financial Supervisory Authority
02. Non-banking financial markets in 2015
03. Consumers’ Protection

3. Financial Supervisory Authority
Let’s talk about non-banking financial market
01

4. Let’s talk about non-banking financial market
Financial Supervisory Authority
 ensuring the stability, competitiveness and proper operation of the financial
instruments markets, promoting the trust in these markets and in the
investments in financial instruments, and ensuring the protection of operators
and investors against disloyal, abusive and fraudulent practices;
 promoting the stability of the insurance activity and protecting the rights of
policyholders;
 ensuring the efficient operation of the private pension system and protecting
the interests of the participants and beneficiaries.
FSA contributes to the consolidation of an integrated operation and
supervisory framework of the non-banking market, of the participants
of and operations performed on such markets and aims at:

5. Romanian competent authority within the meaning of Art. 11 of Directive
2003/6/EC of the European Parliament and of the Council of 28 January 2003
on insider dealing and market manipulation, as subsequently amended and
supplemented.
Pentru atingerea obiectivelor sale legale, ASF și-a construit arhitectura instituțională pentru a
asigura:
Authorizing and Regulation of participants on the non-banking financial
markets in Romania
Supervision for non-banking financial markets in Romania
Non-banking financial services Consumers’ protection
Let’s talk about non-banking financial market
Financial Supervisory Authority

6. What have we done in 2015?
Financial
stability and
trust in the
playfield
Alignment to
EU legislation
and
strengthening
legislative
framework
Re-
credibilization
for FSA and EU
institutional
positioning
Consumers
protection
Let’s talk about non-banking financial market
Financial Supervisory Authority

7. Main actions in 2015
2015:
Insurance
Year
BSR & BSRE
Auditing exercise
for insurance
companies
Surveillance had
intensified and
financial redressing
measures were
taken
A complete and
modern legislative
pack was
elaborated
Important
reforms on
capital market
Clarifying the
situation of
RASDAQ market
Reforming the
legislative and
implementing some
EU legislation
Removing some
obstacles in
functioning of the
market
Improve
regulation for
private
pensions
market
Modifying the
primary legislation
Relaxing the
investment policy
Optimization for
the risk and
provisioning frame
Finalizing FSA’
institutional
reform
Major changes in
the FSA’ flowchart
and institutional
governance
New wages policy
Financial Studies
Institute
Let’s talk about non-banking financial market
Financial Supervisory Authority

8. Improving consumers’ trust
Increasing development and maturity of
markets:
- Stimulate the development of capital
market (S.T.E.A.M.)
- Stimulate the development of
insurance market
- Stimulate long term savings in private
pensions funds (LIFE)
Ensuring an appropriate, prudent and sustainable
regulatory framework
Strengthening the efficiency of supervision
Upgrading instruments of FSA’ intervention
Strengthening FSA’ institutional capacity
FSA participation in European integration
based on shared values
What is next?
Let’s talk about non-banking financial market
Financial Supervisory Authority

9. Non-banking financial markets in 2015
Let’s talk about non-banking financial market
02

10. Non-banking financial markets in 2015
Let’s talk about non-banking financial market
72.75% 70.18% 67.88% 64.11% 60.81% 57.34%
9.35% 9.28% 10.05% 10.78% 11.74% 11.88%
0%
20%
40%
60%
80%
2010 2011 2012 2013 2014 2015
Financial sector assets vs GDP
Capital
market
Private
pensions
Insurance
2010 2011 2012 2013 2014 2015*
Banking market 72,75% 70,18% 67,88% 64,11% 60,81% 57,34%
Non-banking financial market 9,35% 9,28% 10,05% 10,78% 11,74% 11,88%
Investment Funds 5,33% 5,01% 5,16% 5,62% 5,92% 5,89%
Private pensions Funds 0,87% 1,21% 1,72% 2,31% 3,03% 3,24%
Insurance companies 3,15% 3,06% 3,18% 2,85% 2,80% 2,75%
Financial market in GDP 82,10% 79,46% 77,93% 74,89% 72,55% 69,22%
* Assets reported for June 2015

11. * Assets reported for June 2015 and eliminated the duplicated data
Investment
funds
Insurance
Represents approx. 29% of
the banking and non-banking
financial assets
Listed
companies
Private
pensions
% Total financial Assets 2015*
Banking market 71,05%
Non-banking financial market 28,95%
Investment Funds with no Romanian
shares’ investments
6,41%
Private pension Funds with no Romanian
shares’ investments
3,31%
Insurance companies with no Romanian
shares’ investments
3,39%
Stock exchange capitalization for local
companies
15,84%
What is our role in financing the economy?
Non-banking financial markets in 2015
Let’s talk about non-banking financial market

12. Insurance market
35 insurance companies out of which 20 general insurance (AG), 8 life insurance (AV) and 7 composit activity
Gross written premiums worth 8,75 mld. lei, increasing with 8,2% as 2014 (7,6% growth for AG, 10,8% growth for AV)
Top 3 market share gross written premium (PBS): Allianz-Țiriac, Omniasig, Groupama (Ʃ 32,41% of total)
Distribution of PBS-AG: 44,10% of total in Bucharest, 10,51% in North-West region and for PBS-AV: 83,53% in Bucharest,
3,28% North-West region
More at: http://www.asfromania.ro
Evolution of gross written premiums
Non-banking financial markets in 2015
Let’s talk about non-banking financial market

13. Capital market
Trades on Bucharest Stock Exchange (BVB)
On BVB the shares are
preffered at trading (89,97%
of total trading value).
Mai multe date: http://www.asfromania.ro
Non-banking financial markets in 2015
Let’s talk about non-banking financial market
Total assets of investment funds

14. Private pensions’ market
Pillar II – new entry participants Sept.2014 - Sept.2015 Pillar II Investment portfolio structure (total, mld.lei)
Pillar III – new entry participants Pillar III Investment portfolio structure (total, mil.lei)
Moreat:http://www.asfromania.ro
Non-banking financial markets in 2015
Let’s talk about non-banking financial market

15. Consumers’ Protection
Let’s talk about non-banking financial market
03

16. Consumers’ Protection
Let’s talk about non-banking financial market
Who are the consumers?
6.459.626 participants in Pillar II
and 373.437 participants in
Pillar III
319.510 investitors in open-
end funds and 91.610 closed
-end funds investors
13.512.725 insurance contracts, of which
10.176.751 general insurance contracts and
3.335.974 life insurance contracts
date la sfârșitul lunii septembrie 2015
And 8.466.635 shareholders

17. Why is important to have insurance, to make investments or to have
a private pension?
Helps at limiting the
financial losses
when they occur
Helps an
individual/family to
be prepared for an
unexpected event,
to raise the incomes
or to have a quiet
life after retirement
Plays an important
role in most of the
financial planning
In Romania, according to an
international study, only 1 out of 5
Romanians have knowledge about
the financial market and only 15%
save and invest to have money at
elderness.
Consumers’ Protection
Let’s talk about non-banking financial market

18. Age Childhood Teenage Adult Retirement
Eventsinlife
Games
Whishes
Whishes
Studies
Fun
Family
House
Jobs
Holidays
Retirement
Nephews
Unexpected events in life include losing the job, accidents,
illness
- - - - - - - - Common elements – importance of financial planning - - - - - - - -
- Incomes - - Expenses - - Risk - - Responsabilities - - Whishes -
Get informed!
Consumers’ Protection
Let’s talk about non-banking financial market

19. Consumers’ Protection Directorate
Monitoring, proactive - irregular practices, fraudulent, inaccurate, unauthorized,
misconduct, misleading advertising, innovative products etc.
Financial Education, proactive – consumer information, increasing welfare and
the level of financial inclusion, awareness and financial literacy for children,
millenials, adults.
Management of petitions, reactively – investigating complaints from consumers
of financial services, clients of supervised entities
Public relations – assistance for consumers, regaining trust, transparency of
processes
Consumers’ Protection
Let’s talk about non-banking financial market

20. Access to
financial services
and financial
capabilities
Financial
education
Financial
literacy
Consumers’
protection
Consumers’ Protection
Let’s talk about non-banking financial market

21. Priorities for consumers’ protection:
• Monitoring rules of conduct that can affect customers and the market or that
break the law
• Protecting investors against incorrect or abusive, fraudulent practices
• Reviewing contracts as standing for consumers’ protection
• Implementing standars for business conduct:
– Mandatory transparency rules
– Objective recommandations and high quality assistance for clients
– Avoiding conflict of interests
– Ethics in relations with the consumers
– Duty of care as improving responsability of financial entities towards c
onsumers
• Ensuring non-discriminatory treatment and access to goods and services
which comply consumers’ needs
• Reducing financial educational defficit
• Access to education, based on needs, and building financial capabilities
• Prompt administration of petitions received and facilitating their submission
• Sustaining protecting funds – Investors Compensation Fund, Insurance Guarantee
Fund, Private Pensions Guarantee Fund, Street Victims Fund.
Consumers’ Protection
Let’s talk about non-banking financial market

22. ASF Financial Education Program
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