Financial regulators may “escape” salary law

Thus, including the National Securities Commission (CNVM), the Insurance Supervisory Commission (CSA), and the Private Pension System Supervisory Commission (CSSPP) under the single salary law would violate the financial independence principle, that together with other criteria, is the basis of the request to strengthen the financial system. Sources close to the World Bank previously told Business Standard that the international institution cut €30 million of the first tranche of a loan granted to Romania because authorities had not finalized in due time a draft law regarding the independence of financial market supervisors.

The single salary draft law was subject to many amendments in the past few months, and yesterday a new draft was to be sent to the three international institutions.

Labor Minister Marian Sârbu initially issued a note according to which CNVM, CSA, and CSSPP employees were not affected by the salary law, but the government decided to include them as well. However, one of the conditions of the €1 billion loan granted by the World Bank was ensuring the independence of the supervisory authorities, in accordance with regulations on foreign markets.

The international bodies recommended that CNVM, CSA, and CSSPP employees should benefit from competitive salaries, because these institutions require qualified personnel and the risk of the staff’s migrating to the private sector should be minimized.