Amendments to the Financial Supervisory Authority Regulation no. 4/2021 regarding the control activity and publication on the Financial Supervisory Authority website of the intention to apply the ESMA Guidelines for reporting under articles 4 and 12 of SFTR
On 9 July 2021 in the Official Gazette of Romania under number 680 has been published the Financial Supervisory Authority (the "FSA") Regulation no. 10/2021 ("Regulation 10/2021") amending and supplementing the FSA Regulation no. 4/2021 regarding the control activity conducted by the FSA ("Regulation 4/2021").
The main amendments brought by the Regulation 10/2021 refer to the extension and repeal of certain terms stipulated under Regulation 4/2021 in favour of the FSA. In this regard, it has been stipulated that the control minutes following a periodic or unannounced control shall be delivered to the controlled entity by the coordinator of the control team in electronic format or by any other means of communication that can be proven later, within a maximum of 10 (ten) working days from the completion of the control action instead of 3 (three) working days as it has been stipulated in its previous form. Moreover, there has been extended the term within which the conciliation meeting shall take place between the control team and the management of the controlled entity in case of objections raised by the controlled entity from 3 (three) to 5 (five) working days. Also, the conciliation minutes shall be signed by the participants of the conciliation meeting within a maximum of 5 (five) working days from the date of the conciliation meeting.
Furthermore, the term of maximum 14 (fourteen) working days from the signing of the conciliation meeting within which the controlling team had the obligation to present to the FSA’s board its note on the conclusions and proposals regarding the issues identified as a result of the control action has been repealed. Correspondingly, there has also been repealed the term of maximum 10 (ten) working days to present to the FSA’s board the conclusions and proposals of the controlling team regarding the issues identified as a result of the control action in case of a permanent control. However, the obligation to present its conclusions and documents to the FSA’s board has not been amended.
Further, on the official website of the FSA, there has been published the European Securities and Markets Authority (the "ESMA") Guidelines for reporting under articles 4 and 12 under Regulation 2015/2365 on transparency of securities financing transactions (the "SFT") and of reuse and amending Regulation No. 648/2012 (the "SFTR") (the "Guidelines for reporting under SFTR").
According to the information published on its official website, it appears that the FSA intends to apply said Guidelines for reporting under SFTR and has notified ESMA in this regard.
The Guidelines for reporting under SFTR shall apply in relation to the SFT reporting obligation as provided under article 4 of the SFTR, the trade repositories obligations under articles 5 (7) and 12 of the SFTR, as well as the reporting start date as determined in article 33 (2) of the SFTR.
The Guidelines for reporting under SFTR aim to clarify certain provisions of the SFTR, as follows:
- the reporting start date when it falls on a non-working day;
- the number of reportable SFTs;
- the population of the reporting fields for different types of SFTs;
- the approach used to link SFT collateral with SFT loans;
- the population of reporting fields for margin data;
- the population of reporting fields for reuse, reinvestment and funding sources;
- the generation of feedback by trade repositories and its subsequent management by the counterparties, namely in the case of (i) rejection of the reported data and (ii) reconciliation breaks; and
- the provision of access to data to authorities by the trade repositories.