· Web viewTWINNING INTERIM QUARTERLY REPORT. TWINNING. INTERIM QUARTERLY REPORT number: 8. EUROPEAN COMMISSION. TWINNING PROJECTS. INTERIM QUARTERLY REPORT. Project Title: Development

TWINNING INTERIM QUARTERLY REPORT

TWINNING INTERIM QUARTERLY REPORT number: 8

EUROPEAN COMMISSION

TWINNING PROJECTSINTERIM QUARTERLY REPORT

Project Title: Development and consolidation of the National Commission for Financial Markets’ operational and institutional capacities in the field of prudential regulation and supervision.Partners: The National Commission for Financial Markets

of the Republic of Moldova (NCFM) KNF - The Polish Financial Supervision Authority Date: August 2017

Twinning Contract number: Moldova - ENI/2015/363-321

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General instructions

1. Overview

The Interim Quarterly Report/Final Report for the project comprises the following parts:

Section 1 Basic data on the project Section 2 Content: progress achieved in the implementation of the Twinning project during the reporting period and

schedule for the remaining periodSection 3 Expenditure: actual expenditure in relation to budgeted expenditure

2. General guidance

Throughout the entire Twinning project, at three-monthly intervals starting with the date of notification of endorsement / signature, the Project leaders may prepare Interim Quarterly Reports/Final Reports.

Interim Quarterly Reports/Final Reports cover both substance and Finances. The deadline for submission of the Interim Quarterly Reports/Final Reports cannot be altered – The first interim quarterly

report will most often refer to less than three months’ actual project implementation, since the arrival of the RTA in the BC and the beginning of the work schedule rarely coincide with the date of notification.

The MS Project Leader in co-operation with the BC Project Leader will submit, within the month following each quarter, the interim quarterly reports to the concerned authority (see 6.4 of the Twinning manual).

One copy of the Report must be sent at the same moment to the relevant Twinning Team in the Commission Headquarters The Report must be submitted in one of the following three languages: English, French and/or German.

3. Notice

The approval of the Report by the relevant authorities is without prejudice to the Commission's right to suspend the activities of a project, terminate an agreement or take any other appropriate step should subsequent verifications reveal problems or significant divergences from the work plan, the budget or the conditions of the Twinning Contract as approved.

The views expressed in this report do not necessarily reflect the views of the European Commission

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Section 1: Project data

Twinning Contract Number ENI/2015/363-321

Project Title: Development and consolidation of the National Commission for Financial Markets’ operational and institutional capacities in the field of prudential regulation and supervision.

Twinning Partners (MS and BC) MS: KNF - Polish Financial Supervision Authority

BC: National Commission for Financial Markets of the Republic of Moldova (NCFM)

Report Number: 8

Period covered by the report: 12 May 2017 – 11 August 2017

Duration of the project: 12 August 2015 – 11 November 2017

Rapporteur: Prepared by:

Joanna Lipowczan, Project Manager from the Polish Financial Supervision Authority

Grzegorz Wąsik, Resident Twinning Adviser from the Polish Financial Supervision Authority

Approved by:

Damian Jaworski, Project Leader from the Polish Financial Supervision Authority

Iurie Filip, Project Leader from the National Commission for Financial Markets of the Republic of Moldova

MS signature:

MS signature and date (i.e. MS Project Leader, Mr. Damian Jaworski): ……………………………

MS signature and date (i.e. MS Project Manager, Mrs. Joanna Lipowczan): .................................

RTA signature and date (i.e. MS RTA, Mr. Grzegorz Wąsik): ........................................................

BC signature:

BC signature and date (i.e. BC Project Leader, Mr. Iurie Filip): ……..............................................

RTA counterpart and date (i.e. BC RTA counterpart, Mrs. Veronica Cuhal): .................................

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Section 2: Content

This section describes the activities of the project. It is divided in five sections.

2A – BACKGROUND

2B – ACHIEVEMENT OF MANDATORY RESULTS

2C – ACTIVITIES IN THE REPORTING PERIOD

2D – TIMING AND DELAYS

2E – ASSESSMENT

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2A – BACKGROUNDThis report covers activities carried out in the eighth quarter of the Project, in the period of 12 May 2017 until 11 August 2017. This chapter comprises political developments directly linked to the subject of the Project, the state of achievement of project objectives and the state of project assumptions.

Overall objectives

Overall Objective and indicators of achievement (as in Logframe)

State of achievement/ problems encountered

Overall Objective: Development and implementation of the Risk-based Supervision System for the non-banking financial market participants, including capital market, insurance, pension funds and micro-finance based on the forecasting and evaluation of the risks and preventable consequences of some unfavourable events.Alignment with EU acquis and implementation of best practices of EU in regard to non-banking financial market supervision.

Development and implementation of the Risk Based Supervision System for the non-banking financial market participants, including capital market, insurance, pension funds and micro-finance based on the forecasting and evaluation of the risks and preventable consequences of some unfavourable events accomplished.

A better methodology and standards of supervision of the non-banking financial market including capital market, insurance, pension funds and micro-finance in Moldova will allow a more efficient and secure application of supervisory system based on the forecasting and evaluation of

All activities performed in the eighth Project quarter were successfully implemented.

Within the reporting period the following 14 Project activities were implemented in line with the Twinning Work Plan and updated schedule:

- the second experts’ mission dedicated to the review of the secondary legislation on capital markets in regard to alternative investment funds (i.e. Activity 2.6 - experts’ mission no 2);

- four experts’ missions dedicated to strengthening consumer protection and insurance arbitration (i.e. Activity 3.9 – experts’ mission no 2, Activity 3.10 (experts’ missions no 1 and 2 and Activity 3.11);

- the third study visit on risk-based supervision of insurance companies (i.e. Activity 3.13);

- the experts’ mission presenting the development of the system for early warning indicators for SCAs (i.e. Activity 4.1);

- the experts’ mission dedicated to assessment of supervisory scope of SCAs and development of minimum standards for risk-based supervision of SCAs (i.e. Activity 4.2);

- the experts’ mission focused on the analysis of the savings guarantee fund and liquidity fund for SCAs (i.e. Activity 4.3);

- the experts’ mission dedicated to the review and development of supervisory reporting requirements for SCAs and microfinance

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risks. A well-functioning non-banking financial market in Moldova will contribute to economic growth, poverty reduction and employment as well as overall security and stability of non-banking financial market participants.

institutions (i.e. Activity 4.4);- two experts’ missions focused on the review of

the secondary legislation for Pension Funds and recommendations for amendments (i.e. Activity 4.5 and 4.6);

- the fourth study visit on supervisory practices of SCAs (i.e. Activity 4.7);

- the fifth study visit on supervisory practices of pension funds (i.e. Activity 4.8);

- the Project Completion Conference (i.e. Activity 0.2).

During the last quarter of the Twinning project, the representatives of the General division for collective placements and microfinancing participated actively in the activities dedicated to SCAs, pension funds and alternative investment funds. As a result of activities organized within the Component IV the NCFM experts improved and consolidated their knowledge and experience regarding the implementation of the system of risk-based supervision of SCAs, focusing on specific topics such as: Early Warning Indicators, savings guarantee fund and liquidity fund for SCAs, the reporting requirements for SCAs and review of secondary legislation related to pension funds.

During Activity 2.6 the draft Law on Alternative Collective Investment Undertakings developed by NCFM experts was consulted with polish experts and based on their recommendations provided in the Activity 2.6 review report would be completed and improved.

During Activities 4.5, 4.6 and 4.8 the draft Law on Voluntary Pension Funds developed by NCFM experts was consulted with polish experts. In order to ensure the transposition in the draft Law of IORP Directive (EU Directive 2016/2341 on the activities and supervision of institutions for occupational retirement provision), the draft Law on Voluntary Pension Funds would be completed and improved based on the recommendations of polish experts provided in the review reports and taking into account the experience of Poland in this field.

During the activities dedicated to the consumer protection and insurance arbitration, the NCFM experts have consolidated their knowledge on IT solutions for receiving and analysing complaints regarding the activity of insurance market participants, setting up of Alternative Dispute Resolutions (ADR) scheme, creation on NCFM website of the tap for the

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Consumer service etc.

During the Completion Conference were presented the main results and achievements of the Twinning project as well as steps forward and future challenges.

Project purpose

Project purpose and indicators of achievement (as in Logframe) State of achievement/ problems encounteredProject purpose:Development and maintenance of an appropriate and effective regulatory and supervisory framework in accordance with the EU legislation and best practices to enable prudential regulation and supervision on the non-banking financial market.Strengthening operational and institutional capacities of the NCFM accomplished.

Development and maintenance of an appropriate and effective regulatory and supervisory framework in accordance with the EU legislation and best practices to enable prudential regulation and supervision in the field of:

1. capital market and investment funds sector;

2. insurance companies sector;

3. savings and credit associations and pension funds sector.

The activities implemented in the reporting period provided a contribution to the achievement of the general Project purpose.

During the eighth quarter of the Project, the activities scheduled within the Component 3 (Insurance companies) and Component 4 (Savings and credit associations (credit unions) and pension funds) as well as one supplementary mission within activity from the Component 2 (Capital Market and Investment Funds) and two supplementary missions within activities 3.9 and 3.10 in the Component 3 were successfully conducted.

In that period an additional mission within Component 2 took place, during which a draft of the new legislation on alternative investment funds was verified against the relevant EU legislation. As a result of this analysis, a review report with recommendations was prepared by the KNF experts.

Within the Component 3 of the Project the Moldovan legislation was verified against relevant EU rules in the field of insurance intermediaries; insurance undertakings licensing procedure and insurance arbitration and, as a consequence, a review report with recommendations, working papers for supervisory use and guidelines on strengthening the consumer protection and insurance arbitration were developed by the KNF experts. Moreover, a working paper was prepared covering the following topics: rules for the proper use of insurance, the rights and obligations of the insured, the structure of insurance products, case

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studies and a glossary of terms used.

In order to recapitulate the Component 3, the third study visit to Poland was organized. As a result of that study visit, a joint study visit report was prepared by the participants.

In the scope of the Component 4, in regard to SCAs sector, three workshops on the early warning indicators system, the principles of supervision of credit unions in Poland and the KNF practice in the field of reporting process requirements with samples/templates and regulation used by the KNF, took place.

Also, the Analysis of savings guarantee fund and liquidity fund for SCAs was performed and the review report with recommendations was drawn up.

With respect to pension funds’ sector, an analysis of the Moldovan market and draft legislation was provided and in result two review reports with recommendations were developed.

In order to recapitulate the Component 4, two study visits to Poland were organized. The first study visit was dedicated to supervisory practices in the area of SCAs, and the second one was focused on supervisory practices with regards to pension funds.

In July 2017, the Project Completion Conference was organized jointly by the Polish and Moldovan partners in Chisinau. The Conference had the purpose of providing information on the Project results and raising public awareness. In order to guarantee wide public information about the Project achievements, a press release as well as a booklet and a leaflet on Project results were prepared in English and Romanian.

The input provided by the MS experts shall contribute to the establishment of a sound base to facilitate further efforts of the NCFM in the development and maintenance of an appropriate and effective regulatory and supervisory framework in accordance with the EU legislation and best practices.

Thus, the NCFM capacities to regulate the non-banking financial market and strengthen their supervision functions in line with the EU acquis and best practices have started to increase.

The knowledge and experience gathered during activities in Components 2, 3 and 4 of the Project shall

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contribute to the development and improvement of the non-banking financial market legislation in accordance with the EU legislation and commitments assumed by the NCFM in the EU-RM Association Agreement.

Policy Developments The NCFM experts developed and promoted amendments to the Regulation on gradualization of sanctions applied to insurer (reinsurer) or insurance/reinsurance broker which refers to violations of normative framework when selling insurance policies by persons which are not authorized or licensed to provide insurance services and reduced sanctions in case of recognition by the insurer of its breaches/violations. After anticorruption and legal expertise, the draft amendments were registered by the Ministry of Justice and published in the Official Gazette.

The NCFM experts developed draft amendments to the Law on insurance regarding the licensing procedure which were consulted with the KNF experts during their missions in the NCFM. Following the procedure of consultations with public authorities and interested stakeholders and based on the recommendations received in the re4view reports, NCFM prepares the final version of draft amendments and conformity table to be submitted to NCFM Council of Administration for approval.

Following the approval of the Regulation regarding requirements for the insurer’s reinsurance program and rules for reinsurance contracts, NCFM made efforts to ensure the enforcement and implementation of its provisions, taking into consideration the recommendations and experience shared by polish experts during their expert missions and during the study visit to KNF.

Based on the knowledge improved during the Twinning activities and experience shared during the study visit and taking into account recommendations of the KNF experts presented in their review reports, the NCFM experts completed the final versions of the Regulation on standardized accounting principles applied to insurance undertakings and Regulation on forms and content of specialized financial reports submitted by insurers (reinsurers). After their approval by NCFM Council of Administration, the draft regulations shall be submitted to the Ministry of Justice for registration.

During the reporting period the NCFM staff has been involved in several activities related to strengthening consumer protection and insurance arbitration, during which they have acquired additional knowledge on activities and incentives helping to raise awareness and improve public confidence in insurance companies. Also, during these activities the NCFM experts absorbed detailed information regarding the use of the regulatory authority’s website as a main communication tool with market participants and consumers of financial services, highlighting the importance of information and data published on the authority’s official website.

Project AssumptionsIn the reporting quarter the activities within the Twinning Project have assisted the NCFM in fulfilling the commitments of the Republic of Moldova stipulated in the

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former Partnership and Cooperation Agreement between the European Union and the Republic of Moldova, repealed and replaced by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, which is currently in force.

In particular, the Twinning Project has had as main objective to contribute to the process of transition of the NCFM from compliance-based supervision to the establishment by the NCFM of the risk-based supervision for the three sectors of the non-banking financial market. The experts’ missions implemented in the eighth reporting period were focused on presenting the supervisory review process applied by the KNF in regard to alternative investment funds; strengthening consumer protection and insurance arbitration; system for early warning indicators for SCAs; supervisory scope of SCAs and development of minimum standards for risk-based supervision of SCAs; savings guarantee fund and liquidity fund for SCAs; supervisory reporting requirements for SCAs and microfinance institutions and pension funds. Within these activities recommendations and good practices on conducting risk-based supervision were provided to the NCFM.

During the reporting period, based on experience shared by KNF experts during the missions and study visit, NCFM experts have completed the draft amendments to the Law on savings and loan associations which aims at developing the SCA system by promoting best practices in the field to meet the challenges of accessing long-term financing, protecting depositors, ensuring the stability of the system as a whole, and enhancing service quality. The draft law also provides for the simplification of the procedure for holding general meetings of the members of the SCA, the reduction of the minimum quorum threshold, completion of the SCA Board's attributions, and the substitution of the Stabilization Fund with the savings fund for the compensation of individuals in case of forced liquidation or insolvency of SCAs. Following the approval by the Government, the draft amendments were approved by the Parliament in the first reading in June 2017 and are under examination for the second reading.

2B - ACHIEVEMENT OF MANDATORY RESULTSResults and indicators of achievement (as in Logframe) State of achievement/ problems encounteredComponent 1 – Strengthening operational and institutional capacities of the NCFM.

Indicator of achievement (copied from logframe)

Strengthening operational and institutional capacities of the NCFM accomplished.

Internal procedures/manuals/rules developed in line with the EU best practice.

The activities scheduled within the first Component of the Project were successfully completed and the results were achieved within the first, second and third quarters of the Project implementation.

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Component 2 – Capital Market and Investment Funds.Indicator of achievement (copied from logframe)

Strengthening operational and institutional capacities of NCFM to supervise and regulate capital market and investment funds sector accomplished.

The activities originally scheduled within the second Component of the Project were successfully completed and the results were achieved within the third, fourth, fifth and sixth quarters of the Project implementation.

With respect to NCFM request justified by the new draft Law on alternative investment funds recently prepared, an additional experts’ mission took place within the Activity 2.6.

Activity 2.6 Review of secondary legislation on capital markets. (part 6) - second experts’ missionBenchmarks:

Review of secondary legislation on capital markets against relevant provisions of Directive on Alternative Investment Fund Managers performed.

State of achievement:

Activity successfully completed and the result achieved.

The purpose of the second experts’ mission within Activity 2.6 was the review and assessment of the Draft Law on Alternative Collective Investment Undertakings (“the Draft Law”), which transposes the Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (“AIFMD”) into the Moldovan legislation. The Experts focused on rules concerning authorisation, operating conditions, including structure and activities of alternative investment fund managers that might be established in the Republic of Moldova.

As a result, a report assessing the scope of implementation of the AIFMD was prepared. Although the Draft Law was based on the AIFMD, the Experts identified certain areas which were not fully aligned with this directive. For example, they referred to the entities (types of funds, managers) not exempted from the regime established in the Draft Law. Detailed recommendations were dedicated to authorisation process, investment limits for collective investment

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undertakings, capital requirements, operating conditions, depositary, transparency and sanctions.

The Experts also recommended adopting an approach that would have the main conditions and requirements on the structure and operation of alternative investment fund managers specified in a legislative act as provided in the Draft Law. Simultaneously, the Draft Law should be supplemented by acts of secondary nature i.e. by the regulatory acts of the NCFM. The Experts also suggested setting rules relating to long-term investment funds and European venture capital funds in the secondary legislation and not in the Draft Law.

Component 3 – Insurance Companies.Indicator of achievement (copied from logframe)

Strengthening operational and institutional capacities of NCFM to supervise and regulate insurance companies sector accomplished.

Within the reporting period the following successive Project activities were performed in line with the Work Plan:

Activity 3.9 Strengthening consumer protection and insurance arbitration. (part 1) – second experts’ mission

Benchmarks:

Workshop on consumer protection performed.

Guidebook/guidelines containing the results of analysis on the legal regulations, proposed changes in laws, principles that should be adopted were drawn up.



During this Activity, the experts analyzed the Moldovan legal acts against relevant new European Union provisions on activities of insurance distribution (insurance intermediaries’ activity), namely Directive 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (IDD Directive”), in order to provide recommendations for further legislation amendments and changes in the supervisory practice. The analysis was carried out in the area of the legal framework in force in the Republic of Moldova concerning mostly the approach on supervising insurance intermediaries, licensing

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insurance intermediaries and noteworthy characteristics of the Moldovan law.

The analysis made by experts led them to conclusions that in general the provisions on insurance mediation activity in the Republic of Moldova followed the statutory solutions accepted in the European Union member states. However, the Moldovan present provisions should be updated to comply with the latest conclusions gathered in the IDD Directive. Moreover, the supervisory body shall put an effort in applying the big data tools to obtain results helping to exercise supervision over intermediaries and insurance undertakings in a more efficient way. Another factor worth considering is the need to work out IT solutions allowing intermediaries to send reports on their activity via the Internet.

The Experts recommended allowing the practice of brokerage activities also in the form of natural person and allowing insurance brokers to also conduct economic activities other than brokerage activities. The Experts also underlined that insurance intermediaries should be allowed to offer insurance products of more than one insurer in the same class. It was also recommended to establish the register of all insurance intermediaries and their employees run by the supervisory body or other independent institution.

Activity 3.10 Strengthening consumer protection and insurance arbitration. (part 2) – first experts’ mission

Benchmarks:

Presentation of the role and experiences of the supervisory authority in the protection of consumers of insurance services and workshops on market practices identified in the insurance market in Poland performed.

Guidebook/guidelines on consumer protection (including implementation guidelines - effective solutions in Poland, experiences of the KNF, the possible directions of change in the strengthening of consumer rights, optimal model of ADR for resolving disputes in the insurance/financial) drawn up.


Activity successfully completed and the result

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achieved.

The Activity 3.10 consisted of a workshop dedicated to establishing insurance undertakings - legal and practical aspects; acquisitions and increases of holdings in the Polish insurance sector; personal applications – candidates for members of the insurance undertaking governing bodies and key persons. The workshop was followed up by three case studies interrelated with topics presented by the Polish Experts.

Following the workshop, the Experts also developed working papers, including an analysis of new amendments to the Law on Insurance in matters of licensing procedure. Among others, the Experts suggested verifying the scope of application for insurance license, the range of documents provided by the applicant and catalogue of attachments to the request for granting of a license to conduct insurance activities. They also referred to the provision on withdrawal of license, and suggested revising too strict rules stipulated in the draft law. Experts also positively assessed the extension of the time to process an application from 30 days to 3 months and the prohibition to conduct commercial activities by an applicant.

Additionally, the Experts prepared a list of formal issues of the application for granting an insurance license and of documents to be enclosed with the application and the procedure on licensing the insurers.


Benchmarks:

Presentation of the role and experiences of the supervisory authority in the protection of consumers of insurance services and workshops on market practices identified in the insurance market in Poland performed.

Guidebook/guidelines on consumer protection (including implementation guidelines - effective solutions in Poland, experiences of the KNF, the possible directions of change in the strengthening of consumer rights, optimal model of ADR for resolving disputes in the insurance/financial) drawn up.

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In the scope of this Activity, a presentation on the role of the supervisory authority in the process of consumer protection of insurance services; principles of handling complaints by financial market entities and alternative dispute resolution methods in the insurance market (mediation, arbitration, conciliation) took place.

Moreover, the Experts developed guidelines on strengthening consumer protection and insurance arbitration, dedicated to presenting the importance of the role of protecting clients of insurance services and the risks they may materialise in the business of insurance companies, indicating the requirements that must be met to ensure the effectiveness of this system in supervisory practice, taking into account the main supervisory objectives. Especially, the Experts paid attention to the system for receiving and analyzing signals of irregularities (complaints) in the functioning of insurance market entities; IT solution for receiving and analyzing complaints, taking into account the area of “relationship with customers” in supervisory assessment of the functioning of insurance companies; the system of examining complaints by insurance market entities; creating a tap of the service for consumer of financial services on the NCFM’s website; setting up an Alternative Dispute Resolutions scheme which will provide impartial opinions on positions taken by the parties within the dispute between an insurance undertaking and its client; and amending the definition of “insured party” in the Law on Insurance.

Activity 3.11 Strengthening consumer protection and insurance arbitration. (part 3)

Benchmarks:

Presentation of the experiences of the KNF in carrying public communication activities addressed to insurance market participants performed.

Consultation on drafting one booklet/guidelines including preparations of the structure of a booklet/guidelines covering the following topics: rules for the proper use of insurance, the rights and

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obligations of the insured, the structure of insurance products, case studies and glossary of terms performed.



The purpose of this Activity was to prepare a working paper with structure of booklet/guidelines covering the following topics: rules for the proper use of insurance, the rights and obligations of the insured, the structure of insurance products, case studies and glossary of terms. The developed document „A Guide to Insurance Basics” was dedicated to the general public and aimed to provide consumers with neutral information regarding insurance products and a better understanding of their major features, but also to raise risk awareness. The booklet gives practical tips on what should be considered upon signing an insurance contract and on things to look out for when buying insurance as well. The booklet makes the general public acquainted with the rights and obligations of insured person, explains how to make a claim and where to look for help and reliable information. Additionally, it is equipped with a glossary of basic terms defined in user-friendly language.

Activity 3.13 Study visit on risk-based supervision of insurance companies.

Benchmarks:

Study visit on risk-based supervision of insurance companies provided by the KNF in collaboration with relevant institutions, e.g. Insurance Guarantee Fund in Poland.



A total of 11 NCFM employees participated in the study visit to Poland. The study visit was organised by the KNF in collaboration with the Polish Insurance Guarantee Fund (UFG).

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The main objective of the study visit was to sum up the joint work performed during the particular short-term experts’ missions which took place in Chisinau within the Component 3 “Insurance companies”.

The study visit participants visited the main premises of the KNF and attended several meetings with the relevant KNF experts from the Risks Monitoring Department; Insurance Supervision Department; Customer Protection Department and Insurance and Pension Licensing Department.

During this study visit, the participants had an opportunity to learn practical aspects of work conducted by the KNF and the Polish supervisory approach with respect to the subjects discussed during the experts’ missions in Chisinau. In particular, the consultations were about the KNF input/role in developing and introducing regulations in the process of transition to Solvency II, own risk and solvency assessment reports; reinsurance activity in Poland; internal rules for the review of insurers’ financial statements; elements of the Early Warning Plan and supervision measures imposed on a specific company. In regard to consumer protection, the discussions focused on stages for handling complaints/petitions and cooperation with insurance companies to settle the complaints/petitions; procedure for amicable settlement and how it works in practice, underlying risks, efficiency, advantages and disadvantages of this procedure. The Experts also explained the practical aspects associated with the verification of reputation of key persons in a company, indicators for evaluating the reputation; shareholders’ transparency; method for authorizing significant shareholders; authorization threshold and method for sanctioning shareholders; the MTPL market liberalization, as well as certain aspects of damage liquidation by insurers.

During the last day of the study visit, the participants visited the UFG. The consultations with the experts from the UFG were dedicated to the UFG’s external institutional environment including legal framework, statutory bodies (mechanism of administration and management of the Fund), internal organizational structure, membership rules, income and expenses. During the consultations experts also discussed about the UFG’s statutory functions, like controlling-fees function, compensatory function, recourse function, assistance function as well as touristic guarantee fund’s function. The last part of the consultations was

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focused on the UFG’s Information Center’s function in the area of motor insurance (including main principles of the UFG’s Information Center functioning; insurance database: data collection, sharing and utilization; analytical and fraud detection projects); the UFG’s Information Centre’s reporting (internal and external reports; technical, business and managerial reports; publicly available reports); presentation of functionalities and applications: „Check MTPL insurance”, „Check MTPL insurance and accident history”, “Uninsured detection”, “Discrepancies explanation”, „In case of Traffic Accident”) and UFG’s function in the area of life and non-life insurance (database functioning and administration).

During the study visit, emphasis was put on the transfer of knowledge, know-how, experience, lessons learned from the good practices based on the EU legislation. Relevant modern EU supervisory standards were presented as well. The participants were able to discuss with the Polish experts practical problems connected with the Moldovan insurance sector and receive advice and comments regarding supervisory or operational approaches, as well as future Moldovan legislation plans. The acquired knowledge and experience contributed to the development of the NCFM practice applied on daily basis.

As a result of this Activity, a Study visit report was prepared by the participants.

Component 4 – Savings and Credit Associations (Credit Unions) and Pension Funds.Indicator of achievement (copied from logframe)

Strengthening operational and institutional capacities of the NCFM to supervise and regulate savings and credit associations (credit unions) and pension funds sector accomplished.

Within the reporting period the following successive Project activities were performed in line with the Work Plan:

Activity 4.1 Development of System for Early Warning Indicators for SCAs.

Benchmarks:

Workshop on early warning indicators system performed.


Activity successfully completed and the result

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achieved.

This activity entailed a workshop that included a presentation related to the system for early warning indicators for SCAs. The Experts thoroughly presented various early warning systems used for SCAs supervision. Namely the Pearls, Kaper and SASSKOS systems were discussed. Particularly, the Experts showed the difference between the systems, theirs functionalities and possible way of using. The rules of creating the analytical system in terms of system goal, data sources, indicators selection, indicators standardization and results interpretation were also explained during that workshop.

Activity 4.2 Assessment of supervisory scope of SCAs. Development of minimum standards for Risk-based supervision of SCAs.

Benchmarks: Workshop on the principles of credit unions’ supervision in Poland performed.



The three-day workshop which was carried out during this Activity concentrated on minimum standards for risk-based supervision of SCAs. The main focus regarded credit unions worldwide environment and binding legal frameworks. The experts also discussed the principles of SCAs assets valuation, the way of conducting supervision over SCAs and the applicable paths of SCAs reconstructing and possible remedial measures. The procedure of resolving the SCAs was also explained and the Polish recent experience on SCAs supervision was presented.

Activity 4.3 Analysis of savings guarantee fund and liquidity fund for SCAs.

Benchmarks:

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Review of existing scope and guarantee schemes with recommendations performed.



This Activity encompassed a presentation dedicated to the Polish Bank Guarantee Fund (“BFG”). The mission, history, structure, IT systems, management and operational function of the BFG were shown.

Following the analysis of the Moldovan legislation on SCAs structure and financial standing of the sector, the Experts prepared a detailed report with precise recommendations focusing on development of proper and effective systems guaranteeing deposits’ safety as a crucial and indispensable part of the financial stability framework.

The most important recommendations proposed by the Experts concentrated on raising the level of coverage, the scope of the guarantees, clarification of the trigger for starting deposit reimbursement process, deadline for reimbursements, the target level for the DGS fund and premium system. In terms of liquidity assistance and stabilization measures, the Experts advised to minimize the counterparty risk in the field of SDF by eliminating the possibility to invest collected funds in bank deposits; enhance the robustness of emergency liquidity assistance provision by granting the NCFM with the power to require SCAs to pay extraordinary contributions; provide directly in the law the powers of the special administrator and create a financing arrangement based on ex-ante contributions to support stabilization measures if necessary.

Activity 4.4 Review and development of supervisory reporting requirements for SCAs and microfinance institutions.

Benchmarks:

Workshop on the KNF practice in the field of reporting process requirements with samples/templates and regulation used by the KNF performed.

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This Activity entailed two-day workshop on reporting requirements for SCAs. The Scope, form and frequency of reporting, accounting rules of SCA, practical aspects of reporting were presented. Moreover, the Experts explained in detail the monthly and quarterly reports submitted by SCAs and NASCU. The templates of such reports were given to the NCFM staff. Activity 4.5 Review of secondary legislation for Pension Funds and recommendations for amendments. (part 1)

Benchmarks:

Review with recommendations in the scope of pension general regulations and pension investments issues performed.



During this Activity, a presentation dedicated to supervisory IT tools embracing subjects like IT role in financial supervision, transforming vision into working solutions, piece of information called data and Polish turf examples was carried out.

Based on consultations with the NCFM staff, the Experts drew up a review report with recommendations. The first part of the review report outlines the general framework for launching the private pension reform facilitating the decision-makers to broadly assess the need and scope of introducing private pension schemes. The second part deals with the pension design, outlining the choices to be made by the regulator and embedded in primary regulations. The general recommendation stemming from analysis of the Moldovan circumstances in this regard is to

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introduce limited-scale defined contribution pension plans. The third and final part describes the available models of supervision and provides details on possible scope of the secondary regulations. Special attention is given to the disclosure requirements, quantitative investment rules, and the transposition of IORP Directive (Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision) into local regulatory framework.

Activity 4.6 Review of secondary legislation for Pension Funds and recommendations for amendments. (part 2)

Benchmarks:

Review with recommendations in the scope of pension inspection issues performed.



This Activity entailed a presentation on strengthening trust in the pension funds system.

Based on the analysis performed in Chisinau, the Experts prepared a review report with recommendations. The purpose of the report’s review was to present general conditions for private/ occupational pension funds and to provide and define the range of possible secondary legislation, which would correspond with the strengthening of the public confidence in the new capital pension funds’ system and would be consistent with the competencies and rights of the NCFM in the area of issuing regulation and imposing supervision regarding providers. For that purpose, the Experts prepared certain recommendations in the field of authorisation and supervision, distribution, investment, switching providers, decumulation and other product features.

Activity 4.7 Study visit supervisory practices of SCAs.

22

Benchmarks:

Study visit on supervisory practices of SCAs provided by the KNF.



A total of 8 NCFM employees and 1 representative of the Parliament of the Republic of Moldova participated in the study visit to Poland. The study visit was organised by the KNF in collaboration with the Polish Bank Guarantee Fund (BFG).

The main objective of the study visit was to sum up the joint work performed during the particular short-term experts’ missions which took place in Chisinau within the Component 4 “Savings and credit associations (credit unions) and pension funds” in the field of supervisory practices regarding the SCAs.

The study visit participants visited the main premises of the KNF and attended several meetings with relevant KNF experts from the Banking, Payment Institutions and Credit Unions Regulations Department and Co-operative Banking and Credit Unions Department.

During this study visit, the participants had an opportunity to learn practical aspects of work conducted by the KNF and the Polish supervisory approach with respect to the subjects discussed during the experts’ missions in Chisinau. Inter alia, the discussions regarded KNF organizational structure and internal activity of the Division related to regulation and supervision of Credit Unions (CUs); KNF main functions (i.e. licensing, registration procedures, regulation); relationship: the KNF – NASCU; supervision (on-site and off-site), tools implemented, best practices; monitoring: reports analyses, early warning indicators, restructuring procedures.

During the last day of the study visit, the participants visited the premises of the BFG. The consultations with the experts from the BFG were dedicated to main functions, separation of resolution and deposit guarantee function; relationship between the Polish Bank Guarantee Fund and the KNF; as well as practical experience of applying the deposit guarantee

23

scheme towards failed Credit Unions during the last 3 years.

During the study visit, emphasis was put on the transfer of knowledge, know-how, experience, lessons learned from the good practices based on the EU legislation. Relevant modern EU supervisory standards were presented as well. The participants were able to discuss with the Polish experts practical problems connected with the Moldovan SCAs’ sector and receive advice and comments regarding supervisory or operational approaches as well as future Moldovan legislation plans. Acquired knowledge and experience contributed to the development of the NCFM practice applied on the daily basis.


Activity 4.8 Study visit on supervisory practices of pension funds.

Benchmarks:

Study visit on supervisory practices of pension funds provided by the KNF.



A total of 7 NCFM employees participated in the study visit to Poland. The study visit was organised by the KNF in collaboration with the PKO BP Bankowy PTE S.A. and PKO Bank Polski S.A.

The main objective of the study visit was to sum up the joint work performed during the particular short-term experts’ missions which took place in Chisinau within the Component 4 “Savings and credit associations (credit unions) and pension funds” in the field of supervisory practices regarding the pension funds.

The study visit participants visited the main premises of the KNF and attended several meetings with relevant KNF experts from the Investments Supervision Department and Insurance and Pension Inspection Department.

24

During this study visit, the participants had an opportunity to learn practical aspects of work conducted by the KNF and the Polish supervisory approach with respect to the subjects discussed during the experts’ missions in Chisinau. Inter alia, the discussions regarded basic principles of good pension system design; state - participant - private sector - mutually beneficial interaction; the recent Polish experience regarding activities aimed at developing the pension fund system; the EU regulatory framework of pension investment regulation; IT support for off-site pension supervision and on-site inspection practice.

During the last day of the study visit, the participants visited the premises of the PKO BP Bankowy PTE S.A. and PKO Bank Polski S.A. to consult with the experts from these companies on the pension fund’s management society’s activity and pension fund’s depositary pursuant to the Polish legal provisions.

During the study visit, emphasis was put on the transfer of knowledge, know-how, experience, lessons learned from the good practices based on the EU legislation. Relevant modern EU supervisory standards were presented as well. The participants were able to discuss with the Polish experts practical problems connected with the pension funds’ sector and receive advice and comments regarding supervisory or operational approaches as well as future Moldovan legislation plans. The acquired knowledge and experience contributed to the development of the NCFM practice applied on daily basis.


Activity 0.2 Organization of a Project Completion Conference.

Benchmarks: The Project Completion Conference for app. 30 participants.

State of achievement:Activity successfully completed and the result achieved.

The Project Completion Conference, held on 7 July 2017, was organized jointly by the Polish and Moldovan partners in the Regency Hotel in Chisinau. The Conference had the purpose of providing

25

information on the Project results and raising public awareness. In order to guarantee wide public information about the project achievements, a press release as well as a booklet and leaflet on Project results were prepared in both English and Romanian. The Project Completion Conference was organized as a roundtable.

The meeting had an operational nature and was attended by representatives of the European Union Delegation to the Republic of Moldova, the Embassy of the Republic of Poland in Chisinau, the high level representatives of the Parliament and the Government of the Republic of Moldova, the National Bank of Moldova, the NCFM, the KNF as well as key Moldovan financial market participants i.e. Moldova Stock Exchange, National Bureau of Motor Insurers, Competition Council, investment firms, commercial banks, independent registrars and insurance companies, as well as central savings and loan associations.

Representatives of 6 media companies provided press coverage of the meeting.

The Project Completion Conference gave participants the opportunity to acquire detailed information about the Project achievements, results and recommendations for the follow-up actions. Moreover, detailed information about the Moldovan non-banking financial sector and supervision over that sector were presented in comparison to the Polish and other EU member states’ markets. Foreseen legislation initiatives and expected changes of supervisory practice in Moldova were also discussed during the Conference.

2C. ACTIVITIES IN THE REPORTING PERIODDuring the reporting period the activities were focused on:

- Organization and implementation of the last 11 subsequent experts’ missions in Chisinau in May, June and July 2017;

- Preparation and implementation of the last 3 study visits in May and July 2017 in Warsaw;

- Preparation and organization of the Project Completion Conference in Chisinau in July 2017;

- Development of the leaflet and booklet about the Project;- Development of the 7th Interim Quarterly Report and organization of the

seventh Project Steering Committee (PSC).

26

Project Management

In the twenty-second month of the Project’s legal duration, the seventh Project Steering Committee (PSC) meeting took place. The PSC meeting was organized jointly by the Polish and Moldovan partners in the NCFM Conference room in Chisinau on the 21st of June 2017, in line with the Project schedule. The meeting was attended by the Moldovan and Polish Project Leaders, the Polish Project Manager, the RTA and his counterpart from the NCFM, the Project Manager of the EU Delegation to the Republic of Moldova (EUD), the Chairman of the NCFM (as Observer), member of the NCFM board (as Observer), the 1st Counsellor at the Embassy of Polish Republic in Chisinau (as Observer), the Director of the General Executive Division of the NCFM and Director of the General Division of Insurance Supervision of the NCFM (as Observers).The PSC discussed the progress of the Project, verified the achievement of outputs and mandatory results, as well as discussed the actions to be undertaken in the following quarter and other issues which might affect the smooth implementation of the Project.The PSC also discussed the 7th Interim Quarterly Report (IQR), covering the period of 12th February 2017 – 11th May 2017, submitted to the PSC participants beforehand. The 7th IQR was fully approved by the EUD.

The preparatory works on the eighth Project Steering Committee meeting scheduled for the twenty-fourth month of Project implementation were initiated.

During the reporting period the following project activities took place:

Component 2. Capital Market and Investment Funds. Activity 2.6 Review of secondary legislation on capital markets. (part 6) –second experts’ mission

Names of the MS experts who delivered the activity:

1. Bartosz Klimczak (Key Short Term Expert) – Deputy Director, Investment Funds Department, Polish Financial Supervision Authority;

2. Aneta Zaniewska (Short Term Expert) – Chief Specialist, Investment Funds Department, Polish Financial Supervision Authority.

Experts from the BC who participated in the Activity 2.6 (experts’ mission no 2) and their departments of origin:

The experts’ meetings organized during the second experts’ mission within the framework of the Activity 2.6 were attended by 3 NCFM employees in total. The BC experts were from the General Division of Collective Placements and Microfinance.

Duration of the activity: 11th – 14th of July 2017.

27

The Activity fiche (No 63) for the Activity 2.6 (experts’ mission no 2), the Evaluation sheets of the Activity 2.6 (experts’ mission no 2), the Review report with recommendations resulting from the Activity 2.6 (experts’ mission no 2) and the Attendance list regarding the Activity 2.6 (experts’ mission no 2) are attached in Annex no 1.

Component 3. Insurance companies. Activity 3.9 Strengthening consumer protection and insurance arbitration. (part 1) – second experts’ mission


1. Krzysztof Gorczyca (Key Short Term Expert) – Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

2. Marta Piskała (Short Term Expert) – Senior Officer, Insurance and Pension Licensing Department, Polish Financial Supervision Authority.

Experts from the BC who participated in the Activity 3.9.2 and their departments of origin:

The experts’ meetings organized within the framework of the Activity 3.9 (experts’ mission no 2) were attended by 6 NCFM employees in total. The BC experts were from the General Division of Insurance Supervision.

Duration of the activity: 22nd – 26th of May 2017.

The Activity fiche (No 60) for the Activity 3.9 (experts’ mission no 2), the Evaluation sheets of the Activity 3.9 (experts’ mission no 2), the Review report with recommendations (complementary materials) resulting from the Activity 3.9 (experts’ mission no 2), the Workshop materials for supervisory use resulting from the Activity 3.9 (experts’ mission no 2) and the Attendance list regarding the Activity 3.9 (experts’’ mission no 2) are attached in Annex no 2.

Activity 3.10 Strengthening consumer protection and insurance arbitration. (part 2) – first experts’ mission


1. Anna Lisowska - Popek (Key Short Term Expert) – Chief Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

2. Ewa Król (Short Term Expert) – Chief Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority.

28

Experts from the BC who participated in the Activity 3.10 (experts’ mission no 1) and their departments of origin:

The experts’ meetings organized during the first experts’ mission within the framework of the Activity 3.10 were attended by 8 NCFM employees in total. The BC experts were from the General Division of Insurance Supervision.

Duration of the activity: 16th - 19th of May 2017.

The Activity fiche (No 59) for the Activity 3.10 (experts’ mission no 1), the Evaluation sheets of the Activity 3.10 (experts’ mission no 1), the Working papers and Workshop materials for supervisory use (complementary materials) resulting from the Activity 3.10 (experts’ mission no 1) and the Attendance list regarding the Activity 3.10 (experts’ mission no 1) are attached in Annex no 3.



1. Bożenna Zielińska-Kurpiel (Key Short Term Expert) – Head of Unit, Customer Protection Department, Polish Financial Supervision Authority;

2. Paweł Dudzicz (Short Term Expert) – Expert, Customer Protection Department, Polish Financial Supervision Authority.

Experts from the BC who participated in the Activity 3.10(experts’ mission no 2) and their departments of origin:

The experts’ meetings organized during the second experts’ mission within the framework of the Activity 3.10.2 were attended by 7 NCFM employees in total. The BC experts were from the General Division of Insurance Supervision.

Duration of the activity: 22nd – 26th of May 2017.

The Activity fiche (No 53) for the Activity 3.10 (experts’ mission no 2), the Evaluation sheets of the Activity 3.10 (experts’ mission no 2), the Guidelines on strengthening consumer protection and insurance arbitration resulting from the Activity 3.10 (experts’ mission no2), the Workshop materials for supervisory use resulting from the Activity 3.10 (experts’ mission no 2) and the Attendance list regarding the Activity 3.10 (experts’ mission no 2) are attached in Annex no 4.

Activity 3.11 Strengthening consumer protection and insurance arbitration. (part 3)

Names of the MS expert who delivered the activity:

29

1. Anna Rojek (Key Short Term Expert) – Senior Specialist, Public Communication Department, Polish Financial Supervision Authority;

Experts from the BC who participated in the Activity 3.11 and their departments of origin:

The expert’s meetings organized within the framework of the Activity 3.11 were attended by 3 NCFM employees and 1 representative of the “Capital Market” newspaper. The BC experts were from the Foreign Relations and Development Division.

Duration of the activity: 5th – 9th of June 2017.

The Activity fiche (No 55) for the Activity 3.11, the Evaluation sheets of the Activity 3.11, the Working paper with structure of booklet/guidelines covering the following topics: rules for the proper use of insurance, the rights and obligations of the insured, the structure of insurance products, case studies and glossary of terms resulting from the Activity 3.11, the Workshop materials for supervisory use resulting from the Activity 3.11 and the Attendance list regarding the Activity 3.11 are attached in Annex no 5.

Activity 3.13 Study visit on risk based supervision of insurance companies.


1. Damian Jaworski - Director, Analyses and International Cooperation Department; MS Project Leader, Polish Financial Supervision Authority;

2. Joanna Lipowczan - Head of Unit, Analyses and International Cooperation Department; MS Project Manager, Polish Financial Supervision Authority;

3. Grzegorz Szymański - Head of Unit, Risks Monitoring Department, Polish Financial Supervision Authority;

4. Przemysław Rodziewicz - Head of Unit, Risks Monitoring Department, Polish Financial Supervision Authority;

5. Agnieszka Groniowska - Chief Specialist, Risks Monitoring Department, Polish Financial Supervision Authority;

6. Daria Ringwelska-Ładak - Senior Specialist, Risks Monitoring Department, Polish Financial Supervision Authority;

7. Marek Szała - Senior Specialist, Risks Monitoring Department, Polish Financial Supervision Authority;

8. Ewa Pszczółkowska - Senior Officer, Risks Monitoring Department, Polish Financial Supervision Authority;

9. Anna Wawrzeniecka - Deputy Director, Insurance Supervision Department, Polish Financial Supervision Authority;

10.Monika Szkapiak - Acting Head of Unit, Insurance Supervision Department, Polish Financial Supervision Authority;

11.Jolanta Frączkowska - Expert, Insurance Supervision Department, Polish Financial Supervision Authority;

30

12.Andrzej Kozak - Chief Inspector, Insurance Supervision Department, Polish Financial Supervision Authority;

13.Marta Lizak - Specialist, Insurance Supervision Department, Polish Financial Supervision Authority;

14.Anna Ejsmont - Specialist, Insurance Supervision Department, Polish Financial Supervision Authority;

15.Mariusz Maciejewski - Secretary of the Arbitration Court, Customer Protection Department, Polish Financial Supervision Authority;

16.Bożenna Zielińska-Kurpiel - Head of Unit, Customer Protection Department, Polish Financial Supervision Authority;

17.Anna Wilczek - Expert, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

18.Anna Lisowska-Popek - Chief Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

19.Ewa Król - Chief Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

20.Zbigniew Wiśnios - Chief Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

21.Karol Osiak - Specialist, Insurance and Pension Licensing Department, Polish Financial Supervision Authority;

22.Marek Monkiewicz - Advisor to the Executive Board on International Cooperation, Manager, Planning and Analyses Department, Polish Insurance Guarantee Fund;

23.Piotr Dziel - Information Centre, Senior Analyst, Polish Insurance Guarantee Fund.


The experts’ meetings organized within the framework of the Activity 3.13 were attended by 11 NCFM employees in total. The BC experts were from the General Division of Insurance Supervision and the Foreign Relations and Development Division.

Duration of the activity: 30th of May – 1st of June 2017.

The Activity fiche (No 54) for the Activity 3.13, the Evaluation sheets of the Activity 3.13, the Study visit report resulting from the Activity 3.13, the Working papers for supervisory use resulting from the Activity 3.13, the Study visit program for the Activity 3.13 and the Attendance list regarding the Activity 3.13 are attached in Annex no 6.

Component 4 – Savings and credit associations (credit unions) and pension funds

Activity 4.1 Development of System for Early Warning Indicators for SCAs.

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1. Wojciech Zając (Key Short Term Expert) – Senior Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

2. Łukasz Ostrowski (Short Term Expert) – Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority.


The experts’ meetings organized within the framework of the Activity 4.1 were attended by 6 NCFM employees in total. The BC experts were from the General Division of Collective Placements and Microfinance.


The Activity fiche (No 58) for the Activity 4.1, the Evaluation sheets of the Activity 4.1, the Workshop materials for supervisory use resulting from the Activity 4.1 and the Attendance list regarding the Activity 4.1 are attached in Annex no 7.

Activity 4.2 Assessment of supervisory scope of SCAs. Development of minimum standards for Risk-based supervision of SCAs.


1. Wojciech Zając (Key Short Term Expert) – Senior Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

2. Łukasz Ostrowski (Short Term Expert) – Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority.


The experts’ meetings organized within the framework of the Activity 4.2 were attended by 12 NCFM employees in total. The BC experts included a member of the Board of Administration and employees of the General Division of Collective Placements and Microfinance.

Duration of the activity: 16th – 18th of May 2017.


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Activity 4.3 Analysis of savings guarantee fund and liquidity fund for SCAs.


1. Tomasz Obal (Key Short Term Expert) – Member of the Management Board, Polish Bank Guarantee Fund;

2. Filip Pilichowski (Short Term Expert) – Bank Resolution Expert, Polish Bank Guarantee Fund.


The experts’ meetings organized within the framework of the Activity 4.3 were attended by 10 NCFM employees in total. The BC experts included a member of the Board of Administration and employees of the General Division of Collective Placements and Microfinance.


The Activity fiche (No 56) for the Activity 4.3, the Evaluation sheets of the Activity 4.3, the Review Report with recommendations resulting from the Activity 4.3, the Workshop materials for supervisory use resulting from the Activity 4.3 and the Attendance list regarding the Activity 4.3 are attached in Annex no 9.

Activity 4.4 Review and development of supervisory reporting requirements for SCAs and microfinance institutions.Names of the MS experts who delivered the activity:

1. Alicja Owoc (Key Short Term Expert) – Chief Specialist, Banking, Payment Institutions and Credit Unions Regulations Department, Polish Financial Supervision Authority;

1. Paweł Wesołowski (Short Term Expert) – Chief Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority.


The experts’ meetings organized within the framework of the Activity 4.4 were attended by 6 NCFM employees in total. The BC experts were from the General Division of Collective Placements and Microfinance.

Duration of the activity: 20th – 21st of June 2017.


33



1. Wojciech Wyszyński (Key Short Term Expert) – Deputy Director, Pension Investments Supervision Department, Polish Financial Supervision Authority;

2. Andrzej Szerega (Short Term Expert) – Head of Unit, Pension Investments Supervision Department, Polish Financial Supervision Authority;

3. Bartłomiej Dzik (Short Term Expert) – Senior Specialist, Pension Investments Supervision Department, Polish Financial Supervision Authority;


The experts’ meetings organized within the framework of the Activity 4.5 were attended by 10 NCFM employees in total. The BC experts included a member of the Board of Administration and employees of the General Division of Collective Placements and Microfinance and of the General Division for Information Technology.

Duration of the activity: 3rd – 7th of July 2017.




1. Sławomir Pomarański (Key Short Term Expert) – Head of Unit, Insurance and Pension Inspection Department, Polish Financial Supervision Authority;

2. Maciej Sierant (Short Term Expert) – Chief Specialist, Insurance and Pension Inspection Department, Polish Financial Supervision Authority.


The experts’ meetings organized within the framework of the Activity 4.6 were attended by 5 NCFM employees in total. The BC experts were from the General Division of Collective Placements and Microfinance and Division for Stability and Monitoring of Activities for Prevention and Combating of Money Laundering and Terrorism Financing.

34



Activity 4.7 Study visit supervisory practices of SCAs.


1. Joanna Lipowczan - Head of Unit, Analyses and International Cooperation Department; MS Project Manager, Polish Financial Supervision Authority;

2. Alicja Owoc - Chief Specialist, Banking, Payment Institutions and Credit Unions Regulations Department, Polish Financial Supervision Authority;

3. Paweł Wesołowski - Chief Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

4. Wojciech Zając - Chief Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

5. Łukasz Ostrowski - Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

6. Artur Zając - Chief Specialist, Co-operative Banking and Credit Unions Department, Polish Financial Supervision Authority;

7. Tomasz Obal - Member of the Management Board; Polish Bank Guarantee Fund;

8. Filip Pilichowski - Head of Policy and Support Unit, Resolution Planning Department, Polish Bank Guarantee Fund.


The experts’ meetings organized within the framework of the Activity 4.7 were attended by 8 NCFM employees and 1 representative of the Parliament of the Republic of Moldova. The BC experts included a member of the Board of Administration and employees of the General Division of Collective Placements and Microfinance and the General Division of Legal Assistance.


The Activity fiche (No 64) for the Activity 4.7, the Evaluation sheets of the Activity 4.7, the Study visit report resulting from the Activity 4.7, the Working papers for supervisory use resulting from the Activity 4.7, the Study visit program for the Activity 4.7 and the Attendance list regarding the Activity 4.7 are attached in Annex no 13.

Activity 4.8 Study visit on supervisory practices of pension funds.


35

1. Joanna Lipowczan - Head of Unit, Analyses and International Cooperation Department, MS Project Manager, Polish Financial Supervision Authority;

2. Wojciech Wyszyński - Deputy Director, Pension Investments Supervision Department, Polish Financial Supervision Authority;

3. Ewa Mazurkiewicz-Kuna - Chief Specialist, Pension Investments Supervision Department, Polish Financial Supervision Authority;

4. Bartłomiej Dzik - Chief Specialist Pension Investments Supervision Department, Polish Financial Supervision Authority;

5. Sławomir Pomarański - Head of Unit, Insurance and Pension Inspection Department, Polish Financial Supervision Authority;

6. Maciej Sierant - Chief Specialist, Insurance and Pension Inspection Department, Polish Financial Supervision Authority;

7. Wojciech Jagiełło - Chief Specialist, Insurance and Pension Inspection Department, Polish Financial Supervision Authority;

8. Wojciech Rostworowski - Chief Executive Officer, PKO BP Bankowy PTE S.A.9. Urszula Kontowska - Member of the Board, PKO BP Bankowy PTE S.A.10.Anna Grzybowska - Deputy Director, Operational and Consumer Service

Department, PKO BP Bankowy PTE S.A.;11.Monika Szatkowska - Compliance Specialist, Control and Supervision

Department, PKO BP Bankowy PTE S.A.;12.Arkadiusz Peński - Director, Sales Department, PKO BP Bankowy PTE S.A.;13.Tomasz Rak - Fund Manager, Investment Department, PKO BP Bankowy PTE

S.A.;14.Przemysław Stoch - Risk Manager, Risk Management Department, PKO BP

Bankowy PTE S.A.;15.Leszek Anulewicz - Investment Accounting Manager, Fund Accounting

Department, PKO BP Bankowy PTE S.A.;16.Sławomir Michalski - Office Director, Funds Services Office, Custody

Department, PKO Bank Polski S.A.;17.Andrzej Stryszak - Office Director, International Cooperation & Corporate

Actions Office, Custody Department, PKO Bank Polski S.A.;18.Marcin Kilanowicz - Expert, Funds Services Office, Custody Department, PKO

Bank Polski S.A.;19.Wojciech Worek - Expert, Funds Services Office, Custody Department, PKO

Bank Polski S.A.;20.Małgorzata Sobolewska - Head of Supervision Section, Custody Department,

PKO Bank Polski S.A.


The experts’ meetings organized within the framework of the Activity 4.8 were attended by 7 NCFM employees in total. The BC experts included the Chairman of the NCFM, the Secretary General of the NCFM and employees of the General Division of Collective Placements and Microfinance, of the General Division of Legal Assistance and of the Division for Stability and Monitoring of Activities for Prevention and Combating of Money Laundering and Terrorism Financing.


36

The Activity fiche (No 65) for the Activity 4.8, the Evaluation sheets of the Activity 4.8, the Study visit report resulting from the Activity 4.8, the Working papers for supervisory use resulting from the Activity 4.8, the Study Visit Program resulting from the Activity 4.8 and the Attendance list regarding the Activity 4.8 are attached in Annex no 14.

Activity 0.2 - Project Completion Conference

Names of MS experts who delivered the activity: 1. Lesław Gajek – Special Advisor to the KNF Chairman,2. Damian Jaworski – MS Project Leader,3. Joanna Lipowczan – MS Project Manager,4. Grzegorz Wąsik – MS RTA.

Experts from the BC who participated in the Project Completion Conference and their departments of origin:The Chairman and Deputy Chairperson of the NCFM and 22 experts, including high and medium level representatives of the Beneficiary administration (Council of Administration, Secretary General, Foreign Relations and Development Division, Division for Stability and Monitoring of Activities for Prevention and Combating of Money Laundering and Terrorism Financing, General Division of Legal Assistance, General Division of Securities Supervision, Issuers Monitoring Division, General Division of Insurance Supervision, General Division of Collective Placements and Microfinancing, General Division for Information Technology).

Other participants of the Project Completion Conference:Representatives of the European Union Delegation to the Republic of Moldova – the EU Ambassador to the Republic of Moldova and the Project Manager; the Embassy of the Republic of Poland to the Republic of Moldova – 1st Counsellor of the Embassy of the Republic of Poland to the Republic of Moldova; the Moldovan Parliament - Deputy Chairman and the Ministry of Finance – Deputy Minister; the National Bank of Moldova – the First Deputy Governor and Deputy Director of the Regulation and Authorization Department; the State Chancellery; the representatives of international organizations that are present in Moldova (i.e. World Bank, Consolidated Unit for Implementation of IFAD Programmes) as well as key Moldovan non-banking financial market participants i.e. Moldova Stock Exchange, National Bureau of Motor Insurers, Competition Council, Insurance-Reinsurance Brokers Association, Credit Bureau, CSCA “Credit Union”. Representatives of Moldovan investment firms, commercial banks and insurance companies also took part in that event.

The nature of this meeting was operational and attended by the high level representatives of the European Union Delegation to the Republic of Moldova, the National Commission for Financial Markets of the Republic of Moldova and the Embassy of the Republic of Poland to the Republic of Moldova and the KNF, who gave speeches regarding Moldovan non-banking financial sector and supervision over that sector in comparison to the Polish and other EU member states’ markets, foreseen legislation initiatives and expected changes of supervisory practice in the Republic of Moldova.

37

In addition, a presentation about the Project results and Polish supervisory lessons learned was given by the MS Project Leader and a presentation on twinning project achievements as well as challenges and opportunities for the NCFM and the non-banking financial market in Moldova, comparing the Moldovan and Polish markets, was given by the Deputy Chairperson of the National Commission for Financial Markets.

Journalists from 6 media companies (2 TV channels – Moldova 1, Realitatea TC; 1 newspaper – Capital Market; 2 press agencies – Infotag, Infomarket, 1 Internet news portal – privesc.eu) also attended the Completion Conference meeting.

Duration of the activity: 7th of July 2017.

The Attendance List of participants to the Project Completion Conference (Activity 0.2), the Programme of the Project Completion Conference; the Presentations from the Project Completion Conference; the Press Release about the Twinning Project Conference as well as the Booklet and Leaflet on Project developed within Activity 0.2 are attached in Annex no 15.

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2D. TIMING AND DELAYSAdherence to time schedule

Activity/action Planned X Activity/action Performed

Activity/action Delayed by more than 3 months

0 2015 2016 2017

Month

IX

X XI

XII

I II

III

IV

V VI

VII

VIII

IX

X XI

XII

I II III

IV

V VI

VII

VIII

Project Month

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

Component 1Activity 0.1

X

Activity 0.2

X

Activity 1.1

X

Activity 1.2

X

Activity 1.3

X

Activity 1.4

X

Activity 1.5

X

Activity 1.6

X

Activity 1.7

X

Activity 1.8

X

Activity 1.9

X

Activity 1.10

X

Activity 1.11

X

Activity 1.12

X

Activity 1.13

X

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Activity 1.14

X

Activity 1.15

X

Activity 1.16

X

Activity 1.17

X


X

Activity 2.2

X

Activity 2.3

X

Activity 2.4

X

Activity 2.5

X

Activity 2.6

X X

Activity 2.7

X

Activity 2.8

X

Activity 2.9

X

Activity 2.10

X

Activity 2.11

X

Activity 2.12

X

Activity 2.13

X

Activity 2.14

X

Activity 2.15

X

Activity 2.16

X

Activity 2.17

X

Activi X

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ty 2.18Activity 2.19

X

Activity 2.20

X

Activity 2.21

X

Activity 2.22

X

Activity 2.23

X

Activity 2.24

X


X

Activity 3.2

X

Activity 3.3

X

Activity 3.4

X

Activity 3.5

X

Activity 3.6

X

Activity 3.7

X

Activity 3.8

X

Activity 3.9

X X

Activity 3.10

X

Activity 3.11

X

Activity 3.12

X

Activity 3.13

X


X

Activity 4.2

X

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Activity 4.3

X

Activity 4.4

X

Activity 4.5

X

Activity 4.6

X

Activity 4.7

X

Activity 4.8

X

Recuperation of delaysAt this stage of the Project implementation the timing of three activities has been changed as a result of the availability of experts both from the KNF and the NCFM.

The Activity 0.2 was moved from August 2017 to July 2017, the Activity 4.2 was moved from June 2017 to May 2017, the Activity 4.1 was postponed from May 2017 to June 2017.

The above-mentioned changes did not impact the implementation of the Project and the achievement of mandatory results. It was also discussed and approved in advance by the Twin Partners in order to fulfill the project requirements and timeframes.

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2E. ASSESSMENT Overall Assessment of progressThe Project and the implementation of activities within the eighth Project quarter went smoothly and timely.

The Project has been implemented in close cooperation conducted on a daily basis between the KNF and the NCFM.

The Project partners jointly decided to introduce 3 supplementary experts’ missions within the scope of the Activities 2.6, 3.9 and 3.10.

All-in sixty-four Project activities within Components 1, 2, 3 and 4 were provided within the agreed Work Plan and their planned mandatory results were achieved.

During the eighth quarter of the Project, one activity of the Component 2, four activities of the Component 3 and eight Activities of the Component 4 were successfully implemented (all- in 14 experts’ missions).

The Project Completion Conference was successfully jointly organized by Project’s partners.

The hitherto, all-in 68,implemented experts’ missions were highly appreciated by the NCFM. All Project activities were evaluated by the representatives of the NCFM who participated in the respective experts’ missions and received very positive overall substantive assessment.

All technical and substantive problems which arised during the Project implementation were resolved quickly and efficiently.

Visibility – overview of the progress in the Communication and Visibility Plan implementationThe communication and visibility activities undertaken in the course of the Project were continued to be implemented in accordance with the assumptions of the Communication and Visibility Plan.

In line with the above the Project Completion Conference was organized jointly by the Polish and Moldovan partners, in the Regency Hotel, in Chisinau on the 7 th of July 2017 with aim to disseminate the Project results and create public awareness. The scope and timing of the conference was agreed with all key Project stakeholders to ensure wide publicity and give the public and stakeholders in Moldova the opportunity to receive detailed information on the Project results, achievements and impact achieved with the EU support. In order to guarantee large public information, during the event press conferences was organized and press release was developed both in English and Romanian, following the Twinning visibility standards. Representatives of 6 media companies provided press coverage of the meeting. A reference to the event was also mentioned on the web-portals. The links to some websites with published information on the Twinning Project Closing Conference are presented below:

- http://www.cnpf.md/md/start/- http://www.kiszyniow.msz.gov.pl/ro/actualiti/tytul_strony_53

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http://www.kiszyniow.msz.gov.pl/ro/actualiti/tytul_strony_53

- The newspaper, link: http://capital.market.md/ro/content/proiectul-twinning-incheiat-cu-succes

- Infotag Press agency, links: in Romanian http://www.infotag.md/finances-ro/248890/ and in Russian http://www.infotag.md/m9_finances/248877/

- the whole event was streamed live on privesc.eu (Internet news portal), link: https://www.privesc.eu/arhiva/77121/Sedinta-de-inchidere-a-proiectului-Twinning--Dezvoltarea-si-consolidarea-capacitatilor-institutionale-si-operationale-ale-Comisiei-Nationale-a-Pietei-

- it was also broadcasted on Moldova 1, the National TV channel, during the evening news bulletin “Messager”, link to the article http://trm.md/ro/economic/riscurile-de-pe-piata-financiara-au-fost-reduse/

- another TV channel realitatea.md, link: http://www.realitatea.md/-video--un-sistem-de-indicatori-de-alertare-rapida-pentru-participantii-pietei-financiare-nebancare--obtinute-prin-proiectul-twinning_60649.html

Moreover, the Booklet and Leaflet, both developed in English and Romanian, containing key information about the Project, its purpose and results were distributed among the participants of the conference. Regarding the decoration of the venue, 2 Twinning Project roll-up banners were placed, along with flags of the EU, Moldova and Poland, at prominent positions behind the speakers.

During all Project meetings, such as experts’ missions in Chisinau and Project Completion Conference, the Twinning Project roll-up (banner) was presented according to the Twinning visibility standards. All types of publications and deliverable outputs foreseen in the Twinning Work Plan, such as presentations, workshops and training materials for supervisory use, reports with recommendations, guidelines and other Project’s publications were prepared in accordance with the Project’s document templates, following Twinning visibility standards. All Project visibility products, such as notebooks, folders, pens and USB pen drives, were prepared in accordance with the EU visibility requirements and distributed among the participants of the Project activities such as workshops, expert consultations, study visits and the Project Completion Conference.

In the reporting period also the web presence of the Twinning Project was continued via the official website of the Moldovan Partner at: www.cnpf.md/md/start/ and via a dedicated page on the Polish partner – KNF’s official website available at: www.knf.gov.pl. The scope and language of the website content was tailored to different groups of target audience in the MS and the BC respectively.

During the reporting period the news releases dedicated to the Twinning Project were posted by the NCFM on its official website on a regular basis. In particular, six summarized information referring to Project developments obtained within the cooperation between the Twin Partners (developed in Romanian in order to target audience in Moldova) as well as pictures from some Project events, plus a press release regarding the Project Completion conference were successively published. The above web news releases referred to the experts consultations and workshops dedicated to consumer protection in insurance and namely on public communication and financial education, the analysis of the guarantee fund for SCAs, the review and development of supervisory reporting requirements for SCAs, the Early Warning system for SCAs, as well as the 7th Project Steering Committees meeting and the Project Completion Conference.

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http://www.knf.gov.pl/

http://www.cnpf.md/md/start/

https://www.privesc.eu/arhiva/77121/Sedinta-de-inchidere-a-proiectului-Twinning--Dezvoltarea-si-consolidarea-capacitatilor-institutionale-si-operationale-ale-Comisiei-Nationale-a-Pietei-



The brief updated information (in Polish and English) on the Project progress and achieved results in the previous reporting quarter as well as news regarding the last two study visits of the Moldovan partner in Warsaw in the field of the supervisory practices of SCAs and pension funds (developed in Polish to target audience in Poland), were disseminated via the KNF’s official website.

In addition to the above, following a request received, one press release regarding the Twinning Project (together with tables of activities and pictures) was developed and provided as a contribution to the EU Delegation to Moldova’s Newsletter for May 2017 edition.

The screenshots of the NCFM’s and KNF’s websites (including summary of the information uploaded on the Moldovan Partner website) dedicated to the Twinning Project, pictures, a scan of the article and screenshots of the websites with published press release and information referring to the Project Completion Conference as well as input to the EU Delegation newsletter are attached in the Annex no 16.

Annexes:

1. Annex 1: The Activity fiche (No 63) for the Activity 2.6 (experts’ mission no 2), the Evaluation sheets of the Activity 2.6 (experts’ mission no 2), the Review Report with recommendations resulting from the Activity 2.6 (experts’ mission no 2) and the Attendance list regarding the Activity 2.6 (experts’ mission no 2);

2. Annex 2: The Activity fiche (No 60) for the Activity 3.9 (experts’ mission no 2), the Evaluation sheets of the Activity 3.9 (experts’ mission no 2), the Review report with recommendations (complementary materials) resulting from the Activity 3.9 (experts’ mission no 2), the Workshop materials for supervisory use resulting from the Activity 3.9 (experts’ mission no 2) and the Attendance list regarding the Activity 3.9 (experts’ mission no 2);

3. Annex 3: The Activity fiche (No 59) for the Activity 3.10 (experts’ mission no 1), the Evaluation sheets of the Activity 3.10 (experts’ mission no 1), the Working papers and Workshop Materials (complementary materials) for supervisory use resulting from the Activity 3.10 (experts’ mission no 1) and the Attendance list regarding the Activity 3.10 (experts’ mission no 1);

4. Annex 4: The Activity fiche (No 53) for the Activity 3.10 (experts’ mission no 2), the Evaluation sheets of the Activity 3.10 (experts’ mission no 2), the Guidelines on strengthening consumer protection and insurance arbitration resulting from the Activity 3.10 (experts’ mission no 2), the Workshop materials for supervisory use resulting from the Activity 3.10 (experts’ mission no 2) and the Attendance list regarding the Activity 3.10 (experts’ mission no 2);

5. Annex 5: The Activity fiche (No 55) for the Activity 3.11, the Evaluation sheets of the Activity 3.11, the Working paper with structure of booklet/guidelines covering the following topics: rules for the proper use of insurance, the rights

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and obligations of the insured, the structure of insurance products, case studies and glossary of terms resulting from the Activity 3.11, the Workshop materials for supervisory use resulting from the Activity 3.11 and the Attendance list regarding the Activity 3.11;

6. Annex 6: The Activity fiche (No 54) for the Activity 3.13, the Evaluation sheets of the Activity 3.13, the Study visit Report of the Activity 3.13, the Working papers for supervisory use resulting from the Activity 3.13, the Study visit program resulting from the Activity 3.13 and the Attendance list regarding the Activity 3.13;

7. Annex 7: The Activity fiche (No 58) for the Activity 4.1, the Evaluation sheets of the Activity 4.1, the Workshop materials for supervisory use resulting from the Activity 4.1 and the Attendance list regarding the Activity 4.1;

8. Annex 8: The Activity fiche (No 52) for the Activity 4.2, the Evaluation sheets of the Activity 4.2, the Workshop materials for supervisory use resulting from the Activity 4.2 and the Attendance list regarding the Activity 4.2;

9. Annex 9: The Activity fiche (No 56) for the Activity 4.3, the Evaluation sheets of the Activity 4.3, the Review report with recommendations resulting from the Activity 4.3, the Workshop materials for supervisory use resulting from the Activity 4.3 and the Attendance list regarding the Activity 4.3;

10.Annex 10: The Activity fiche (No 57) for the Activity 4.4, the Evaluation sheets of the Activity 4.4, the Workshop materials for supervisory use resulting from the Activity 4.4 and the Attendance list regarding the Activity 4.4;

11.Annex 11: The Activity fiche (No 61) for the Activity 4.5, the Evaluation sheets of the Activity 4.5, the Review report with recommendations resulting from the Activity 4.5, the Workshop materials for supervisory use resulting from the Activity 4.5 and the Attendance list regarding the Activity 4.5;

12.Annex 12: The Activity fiche (No 62) for the Activity 4.6, the Evaluation sheets of the Activity 4.6, the Review report with recommendations resulting from the Activity 4.6, the Workshop materials for supervisory use resulting from the Activity 4.6 and the Attendance list regarding the Activity 4.6;

13.Annex 13: The Activity fiche (No 64) for the Activity 4.7, the Evaluation sheets of the Activity 4.7, the Study visit Report of the Activity 4.7, the Working papers for supervisory use resulting from the Activity 4.7, the Study visit program resulting from the Activity 4.7 and the Attendance list regarding the Activity 4.7;

14.Annex 14: The Activity fiche (No 65) for the Activity 4.8, the Evaluation sheets of the Activity 4.8, the Study visit Report of the Activity 4.8, the Working papers for supervisory use resulting from the Activity 4.8, the Study visit program resulting from the Activity 4.8 and the Attendance list regarding the Activity 4.8;

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15.Annex 15: The Attendance List of participants to the Project Completion Conference (Activity 0.2), the Programme of the Project Completion Conference; the Presentations from Project Completion Conference; the Press release about the Twinning Project Conference as well as the Booklet and Leaflet on the Twinning Project developed within Activity 0.2;

16.Annex 16: The evidence of communication and visibility activities (the NCFM and KNF website presence of the Twinning project, copy of the input to the EU Delegation newsletter, pictures, a scan of the article and screenshots of the websites with published press release and information referring to the Project Completion Conference).


Section 3: Expenditures

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Documents

· Web viewTWINNING INTERIM QUARTERLY REPORT. TWINNING. INTERIM QUARTERLY REPORT number: 8. EUROPEAN COMMISSION. TWINNING PROJECTS. INTERIM QUARTERLY REPORT. Project Title: Development