This provision is contained in the law on prudential supervision of investment companies, which was adopted by Parliament at the last plenary session of the spring session in its second reading. Its implementation is intended to strengthen the regulatory framework governing the capital market, based on the European Commission’s recommendations to the Republic of Moldova regarding further alignment of its legislation with the acquis of the European Union.
Once it enters into force, the new law will establish rules regarding the principles and specifics of prudential supervision of investment firms and their groups, initial capital requirements, applicable administrative measures and sanctions, as well as methods for ensuring the transparency of the supervisory process.
The law will apply to investment firms. It is expressly stated that the provisions of the approved draft will not apply to credit institutions operating in the capital market, which are subject to prudential supervision by the NBM in accordance with the regulations governing the activities of credit institutions.
The new law regulates the initial capital requirements for investment firms. At the time the license is issued, this capital must be at least the equivalent in Moldovan lei of 750,000 euros if the firm intends to provide any investment services or engage in any of the following investment activities: trading on its own account; underwriting of financial instruments and/or placement of financial instruments with a firm commitment; operation of an organized trading system.
The firm’s authorized capital at the time the license is issued must be at least the equivalent of 75,000 euros in Moldovan lei, if it intends to provide any investment services or engage in any of the following investment activities without the right to hold clients’ funds or securities: the reception and transmission of orders in relation to one or more financial instruments; the execution of orders on behalf of clients; portfolio management; investment advice; placement of financial instruments without a firm commitment.
At the time of authorization, the authorized capital of a firm intending to provide any investment services or carry out any investment activities in accordance with the legislation on financial instrument markets and investment activities, with the exception of those specified above, must be at least 150,000 euros in leu equivalent.
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