Musat & Asociatii has represented the Financial Supervisory Authority of Romania (FSA) in a court action initiated by Fondul Proprietatea (tr: the Property Fund) regarding its attempt to obtain the FSA's approval for changing the fee agreed with the Property Fund manager, Franklin Templeton Investment Management.
In 2010, Franklin Templeton entered into a management contract with the Property Fund. In 2012, the fund's shareholders decided to change the structure of the fee provided for in the management contract and requested the FSA's approval for the increase. In 2013, the FSA rejected the fund's request, a decision that the fund challenged in court. More than three years after the trial started, the High Court of Cassation and Justice definitively rejected the fund’s claim. Previously, the Bucharest Court of Appeal had also found the fund’s claims ungrounded.
"Looking beyond the final decision, in our opinion the Court exercised patience and availability for analyzing extremely complex problems, so as to clarify some challenging and novel points of law, resulting from the Property Fund’s particular organization and operation and the Financial Supervisory Authority’s legal duties towards the Fund," commented Gheorghe Buta, Co-Managing Partner of Musat & Asociatii. "The appeal court’s decision adds to the long line of important victories that Musat & Asociatii achieved in favor of the Financial Supervisory Authority."
The team representing the FSA in the dispute was coordinated by Buta and included Partner Cosmin Libotean and Senior Associate Razvan Gheorghe.