Association for Investor Relations on the Romanian Stock Exchange – ARIR, the only association specialized in Investor Relations in Romania, announced at the ARIR Annual Forum the agenda of legislative priorities for the next 3 years, in line with the international good practices of similar associations in developed markets and emerging. The approach reflects the vision of the listed companies regarding the development of the Romanian capital market, by increasing its attractiveness, efficiency and relevance.
Earlier this year, ARIR members took stock of perceived legislative and public policy issues in their capital market activity. The most common problems faced by ARIR members regarding the local capital market and the regulations applicable to issuers relate to the multiple forms and reporting systems for the same information – the lack of a single platform, an integrated reporting system to BVB and ASF. Issuers want a single annual report, a simplification of registrations and the duration of capital changes and the processing of corporate events. Duplicate reporting to BVB and ASF and overlapping documentation to be prepared unnecessarily increases the complexity of the reporting process. Also simplifying and clarifying the reporting of real beneficiaries,
The first directions of action will be:
- Attractiveness: Shortening the duration of capital increase operations and other corporate operations for listed companies is a desideratum of the ARIR community
- Efficiency: Reducing red tape for issuers of shares and bonds, as well as streamlining inter-institutional dialogue to unify reporting platforms and avoid duplication of financial and non-financial reporting
- Relevance: Reflecting the role of the capital market as a financier of the economy in government programs, strategies and policies, attracting new issuers to the Bucharest Stock Exchange among SMEs with potential for business development and scaling, new individual investors through financial education
According to an independent analysis contracted by ARIR and conducted by expert Mircea Mitruțiu, the way the Romanian state currently understands and capitalizes on the role, potential and tools of the domestic capital market is incomplete and inefficient for solving the complex needs of financing, development and economic reform. of the budget. On the one hand, the Government Program 2021-2024 includes measures proposed for the Ministry of Finance to consolidate the status of emerging market of the Bucharest Stock Exchange and its development by: actively supporting the listing of new companies; stimulating the bond market, including through fiscal facilities, to increase transparency, access to finance and corporate governance performance; opening up new investment and savings opportunities for the population. On the other hand, the Monitoring of the Institutional Strategic Plans (PSI) 2019-2022 of the relevant ministries for the capital market reveals the following:
- Ministry of Business Environment, Trade and Entrepreneurship: The Institutional Strategic Plan does not link the capital market to financing the development of SMEs with the potential to export or internationalize business, being focused exclusively on national SME financing programs and entrepreneurship from the state budget.
- Ministry of Economy: The interest in the local capital market is strictly associated with the corporate governance of state-owned enterprises, where the lack of independence in terms of management and dividend policy is highlighted as a weak point.
- Ministry of Public Finance: The interest for the local capital market is strictly associated with optimizing the process of financing the state budget deficit and refinancing the public debt in the medium term.
In the first three years of its establishment, the Association for Investor Relations on the Romanian Stock Exchange – ARIR has been actively involved in dialogue with capital market institutions on topics such as: clarifying the legislation on conducting hybrid GMS in the context of the pandemic, supporting the need for a single point Reporting for issuers, postponing the implementation of the Single European Reporting Format (ESEF), clarifying the implementation in local law of policy and remuneration reporting issues, introducing two new occupations for specialist and director for investor relations in the COR, clarifying reporting requirements non-financial for issuers. All these topics remain of interest in the future.
About ARIR
ARIR is a non-governmental, non-profit organization that was established to provide current and potential issuers with a platform for investor (IR) professional development and to contribute to the implementation of best practices in investor communication and in corporate governance. It was established in November 2018 and has as members listed companies, companies with the potential to become listed companies, fund managers, investor relations professionals, as well as consultants. The founding members are the Bucharest Stock Exchange (BVB), ALRO, Electromagnetica, Franklin Templeton Management – juice. Bucharest, Hidroelectrica, Nuclearelectrica, Teraplast, Transelectrica, Daniela Șerban, Tony Romani, while Electrica, OMV Petrom, Antibiotice, Purcari, Idea Bank, BRK Financial Group, Banca Transilvania, Transgaz, MedLife, Romcarbon, Farmaceutica REMEDIA, Autonom, IMPACT Developer & Contractor, 2Performant, One United Properties, Transport Trade Services, Patria Bank, Connections Consult, BRD – Groupe Société Générale și Rompetrol joined as Associate Members, while INNOVA Project Consulting, ENVISIA, RTPR, eVote, Mazars și Marsh Broker de Asigurare – Reasigurare joined as Affiliate Members.