SIFs mull early payment to CNVM

The support that SIFs (financial investment companies) are willing to offer the National Securities Commission (CNVM), through the early payment of fees, is likely to play a strategic role during next week's debates about lifting the shareholding cap.

"Before paying, we want to meet the Commission's representatives because we are talking about early payment of millions. CNVM is asking us to pay a tax in advance. Ultimately, this is a transaction and why would I be interested in paying these fees when I'm offered a 5% cut, below the level I could get by placing the same amount of money with a bank?" said Ioan Cuzman, chairman of SIF Banat-Crisana.

The five SIFs are willing to support the CNVM with cash by paying in advance fees worth approximately 3.5m RON (850,000 euros).

The bill that stipulates the relaxation of the shareholding cap for SIFs from 1% to 5% is to be discussed by the budget commission of the Chamber of Deputies next week. The commission invited SIF executives and CNVM officials to take part in discussions. The same week, the SIFs intend to meet with the supervisory authority's representatives to talk about the six-month early payment of the 0.1% (annual) fee from the value of net assets.

"We do not want anything in exchange from CNVM. We want to cooperate with CNVM representatives, we do not want any legislative concession. We want to have a lucrative relationship with CNVM," said Ioan Cuzman. The company would pay around 770,000 RON in advance to CNVM, calculated in relation with its net assets in late December 2009.

SIF Oltenia, with 1.64bn RON assets at the end of December 2009, would pay around 780,000 RON in advance. On the other hand, should SIF assets rise by June, the company would have to come up with more money and should its assets go down during the same period, the company would have to wait to get back the difference from CNVM.