Romanian Investment Firms are obliged to comply with relevant corporate governance principles as a result of their status of public interest entities. Furthermore, since Romania is a State Member since 2007, it is mandatory for these entities to implement EU regulations. Our main interest is to develop and apply a special Score Function Model in order to assess the compliance level for each investment firm incorporated in the research sample, as regards the effectiveness of internal controls and risk management function, in order to prevent fraudulent operations and client asset misappropriation. We are preoccupied of the compliance level as well as the relevant vulnerabilities related to Romanian Investment Firms. We expect to recommend relevant solutions so that investment firms may overcome these vulnerabilities, in order to assure a prudent supervision and to prevent fraudulent operations. These objectives are imperative for the need of assuring a high level of confidence as regards the consumers of financial investment services.
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Published by Human Resource Management Academic Research Society (www.hrmars.com)
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