LAW OF THE REPUBLIC OF MOLDOVA

of December 1, 2017 No. 250

About additional supervision of the banks, insurers/overcautious persons and investment societies entering financial conglomerate

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Subject and purpose of the law

This law establishes rules of additional supervision of the regulated subjects entering financial conglomerate for ensuring financial stability and protection of investors, insured persons and investors.

Article 2. Scope

This law is applied to regulated subjects – the legal entities who are licensed/authorized according to applicable industry rules who are subject to the additional supervision exercised by the coordinator at the level of financial conglomerate.

Article 3. Basic concepts

For the purposes of this law the stated below concepts have the following values:

the insurer/overcautious person – the insurer/overcautious person according to the definition given in the Insurance law No. 407/2006;

joint business – joint business according to the definition given in the Law on activities of banks No. 202/2017;

competent authority – national authority, on circumstances – the National Bank of Moldova or the National commission on the financial market having warrants of law on regulation and supervision on individual

level or at the level of the whole group behind the subjects falling under operation of this law;

relevant competent authority:

a) the competent authority responsible for industry supervision at the consolidated level of the regulated subjects entering financial conglomerate;

b) the coordinator appointed according to provisions of this law, other than the body specified in Item a);

bank – bank according to the definition given in the Law on activities of banks No. 202/2017;

concentration of risks – risk exposures which with high probability will lead to the losses able to threaten solvency or in general financial position of regulated subjects of financial conglomerate and which can be caused by risk of the partner / credit, investment, insurance or market risk, and also other risks or combination or interaction of these risks;

the financial conglomerate – group or subgroup as a part of which the regulated subject directs group or subgroup or at least one of affiliated enterprises of this group or subgroup is regulated subject and which answers in total the following conditions:

1) if the regulated subject directs group or subgroup:

a) it is either parent entity of the subject of the financial sector, or the subject owning participation in the subject of the financial sector, or the subject connected with the subject of the financial sector the relation determined by the concept "group";

b) at least, one of subjects of group or subgroup belongs to split of insurance and at least one subject belongs to bank/non-bank split or split of investment services;

c) the consolidated or cumulative activities of subjects of group or subgroup in split of insurance and subjects in bank/non-bank split and in split of investment services are essential in part sense (2) or parts (5) Article 4;

2) if the regulated subject does not direct group or subgroup:

a) activities of group or subgroup are performed generally in the financial sector in part sense (1) Article 4;

b) at least one of subjects of group or subgroup belongs to split of insurance and at least one subject belongs to bank/non-bank split or split of investment services;

c) the consolidated or cumulative activities of subjects of group or subgroup in split of insurance and subjects in bank/non-bank split and in split of investment services are essential in part sense (2) or parts (5) Article 4;

control – control according to the definition given in the Law on activities of banks No. 202/2017;

the coordinator – the appointed competent authority responsible for implementation of additional supervision of the subjects entering financial conglomerate;

the regulated subject – bank, the insurer/overcautious person, investment society or society of trust management of investments;

affiliated enterprise – affiliated enterprise according to the definition given in the Law on activities of banks No. 202/2017;

group – the group of companies consisting of parent entity, its affiliated enterprises and legal entities in whom the parent entity or its affiliated enterprises own participation, and also group of the subjects connected among themselves by the relations as follows:

a) the management of two or more subjects is performed jointly based on the signed agreement or provisions of charters or constituent documents of subjects;

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