The creation of the Financial Oversight Authority (ASF) passed the Chamber of Deputies

The Chamber of Deputies yesterday adopted the Government Emergency Ordinance 93/2012 concerning the creation, organization, and operation of the Financial Oversight Authority (ASF).

The new Authority will take over the oversight of the capital, insurance and private pension funds, from the CNVM, the Insurance Oversight Commission and the Commission for the Supervision of Private Pensions.

Earlier, the Budget Commission of the Chamber of Deputies had added two more members to the leading Commission of the Authority, which was initially supposed to comprise 15 members.

The Deputies have decided that the Authority would have a president, a prime vice-president and three vice-presidents.

Dan Radu Ruşanu, the president of the Commission for Budget, Finance and Banks of the Chamber of Deputies is considered as certain being the next president of the Financial Oversight Authority, whereas Mircea Ursache, the former president of the AVAS, may receive one of the positions of vice-president, according to political sources.

In its edition of December 12th, 2012, BURSA reported that the National Liberal Party would prefer Dan Radu Ruşanu, its vice-president, as the head of the ASF.

The representatives of the PDL criticized this ordinance. Deputy Andreea Paul said that its provisions politicize the appointments at the Authority. Moreover, Mrs. Paul claims that banking supervision should belong to the same authority which oversees the three financial markets.

While it doesn't come as a surprise that the PDL would not approve the new organization of the oversight of the financial markets (the management of the CNVM is ensured by Carmen Negoiţă, backed by the PDL), the new Authority has created disagreements even within the USL. It would seem that the PNL refused to hand over yet another position, the presidency of the ASF, after the PSD received the key positions in the current government.

The Ordinance will also be debated by the Senate next, after the Chamber of Deputies.

According to the amendments made by the Deputies, the ASF must be created by April 15th.