Proposal for a new Regulation amending the Regulation of the National Bank of Romania no. 4/2019 on payment institutions and providers specialized in accounts information services
The National Bank of Romania ("NBR") published for public debate, the proposal for a new Regulation amending the Regulation of the National Bank of Romania no. 4/2019 on payment institutions and providers specialized in accounts information services.
Based on the principles and indications contained in the EBA/GL/2017/09 Guide regarding the information to be provided for the authorization of payment institutions and electronic money institutions and for the registration of account information service providers, as well as practical observations found in the framework of the authorization activity, the National Bank considers it necessary to issue further requirements for these institutions.
Thus, this proposal introduces details in connection with the correlation between the complexity of the proposed activity to be carried out and the proposed business plan together with the documentation needed for the authorization of these institutions.
The draft also provides additions in respect of the assessment, set up and distribution of own funds, in particular with regard to the prohibition of the multiple use of elements eligible for the calculation of own funds, for those payment institutions which also carry out other activities (requirement of Article 37 of Law 209/2019). It is distinctly stated that the National Bank will be able to request the reporting institution to change the distribution of their own funds, as per NBR assessment, if it considers that the funds have been improperly distributed.
The draft clarifies the requirements for proof of initial capital ownership for applicants who have carried out work prior to the submission of the application for authorization, by expressly indicating that the audit report that must be presented will take into account “the initial capital determined at the end of the month preceding the date of the application for authorization”. The need to present the shareholders' strategy for supplementation of funds in the event of financial difficulties of the institution, as well as the estimation of a cash flow for the base scenario, is introduced, and it is indicated that explanations for this approach should be provided.
Article 17 of the Regulation no. 4/2019 is reworded with a focus on internal rules and procedures for internal control functions – compliance, audit, risk management – and in the case of outsourced operational functions, the requirements of the EBA/GL/2019/02 Guide on outsourcing will be considered. To this end, the applicant will carry out and submit their own analysis on how the recommendations in this European guide have been considered.
Article 35 expands the requirement for detailing internal procedures dealing with operational and security incidents, and Article 39 proposes the addition of the supplementation of control mechanisms on money laundering and the financing of terrorism, customary in payment operations, regarding the rules and procedures, as well as the arrangements for control over agents and branches.
It might be considered that a positive aspect of the draft is that the opinion of the National Consumer Protection Authority for the institutions intending to carry out services to individuals has been excluded from the documents accompanying the marketing plan.
The proposal for a new Regulation amending Regulation No 4/2019 will be available in the Official Gazette of Romania for public review until 10 August 2021.