The Romanian Financial Supervisory Authority (ASF) announced that the Romanian Government has adopted an emergency ordinance amending the legal framework for private pensions following OECD recommendations assessed during a private pensions working group review in June 2024 as part of Romania’s accession process. The changes relax investment limits, allow pension funds to invest in assets traded on regulated and supervised markets in OECD member countries, and support more risk-differentiated choices for participants, including consideration of age-adjusted investment strategies. Under the new rules, administrators of mandatory privately managed pension funds (Pillar II) and voluntary pension funds (Pillar III) may allocate up to 10% and 15% of assets, respectively, to participation units issued by collective investment undertakings in transferable securities in Romania or other countries. The ordinance also introduces the OECD Liberalisation Codes on capital movements and current invisible operations as reference legal instruments, expands market access for administrators and credit institutions from OECD member states, simplifies access to voluntary pensions by removing the minimum-contribution requirement, and amends Laws No. 411/2004, No. 204/2006 and No. 1/2020 while strengthening ASF’s supervisory capacity.
Romanian Financial Supervisory Authority 2025-04-16
Romanian Financial Supervisory Authority highlights emergency ordinance aligning private pensions with OECD recommendations and lifting UCITS limits to 10% for Pillar II and 15% for Pillar III
The Romanian Financial Supervisory Authority announced an emergency ordinance amending the legal framework for private pensions, aligning with OECD recommendations. Key changes include relaxed investment limits, expanded market access for OECD member states, and simplified access to voluntary pensions by removing the minimum-contribution requirement. The ordinance also strengthens ASF's supervisory capacity and amends several existing laws.