Strategies
Protection Structures Built for Romanian and EU Realities
Our strategies are not generic models repackaged from international templates — they are calibrated to Romanian law, RON-denominated risk, and the EU regulatory context.
Discuss Your SituationFrom Risk Mapping to Living Structure
Every client engagement at Modern Practice follows a four-phase process. Phase one is a confidential risk-mapping session — a structured conversation that surfaces hidden concentrations, underinsured liabilities, and planning gaps most clients are unaware of. Phase two is a mandate design: we draft a written capital protection mandate specifying allowed instruments, loss limits, and review cadences. Phase three is implementation: we build the agreed structure using insurance wrappers, fixed-income instruments, regulated collective vehicles, and — where appropriate — hard-asset allocations. Phase four is an ongoing governance cycle of quarterly reviews and an annual mandate audit. There is no phase where a client is left without a named adviser who knows their full picture.
Core Strategy Categories
We operate across four recognised protection disciplines, combining them within each bespoke mandate according to the client's risk profile and objectives.
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Insurance-Based Investment Wrappers
Unit-linked and mixed-fund insurance contracts issued by regulated Romanian and EU carriers provide tax deferral, forced discipline, and a legally separate asset pool that falls outside the estate for succession purposes. We select the carrier, fund universe, and contribution schedule that matches your mandate — and we are not remunerated by any carrier for the referral.
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Capital-Guaranteed Structured Products
For clients who require certainty of principal, we source and evaluate capital-guaranteed structured notes denominated in EUR or RON, issued by investment-grade EU institutions. We stress-test issuer creditworthiness and explain the full payoff profile before any commitment is made, ensuring no client holds a product they cannot explain to a third party.
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Holding Vehicle and Asset Segregation
A properly structured Romanian SRL or EU-equivalent holding entity can separate operating business risk from investment assets, reduce dividend tax friction, and simplify cross-border inheritance. We work with partner legal counsel to design and maintain these structures, taking responsibility for the financial logic while legal professionals handle the corporate paperwork.
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Multi-Asset Risk-Managed Portfolios
For clients who want market participation alongside protection, we construct risk-budgeted portfolios using EU-domiciled ETFs, short-duration bonds, and selective alternative allocations. Each portfolio operates under a written drawdown policy — if the loss threshold defined in the mandate is breached, we convene a review within 48 hours.
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Liability and Continuity Cover
Capital preservation is incomplete without addressing personal liability, key-person risk, and business continuity gaps. We map these exposures and coordinate appropriate insurance solutions — not as standalone products, but as components of a unified protection mandate that addresses every significant threat to the client's balance sheet.
“I came to Modern Practice after selling my software company in 2021. I had 1.2 million lei sitting in a current account and no idea what to do next. Within six weeks we had a written mandate, a holding structure, and a phased investment plan. Two years on, I have not lost a single night's sleep over the portfolio.”
Mirela Dumitrescu, Craiova — tech entrepreneur
The Romanian and EU Regulatory Context
Romania's membership of the European Union means that capital protection planning must account for both national tax law and the expanding body of EU financial regulation. MiFID II suitability obligations, PRIIPs disclosure requirements, FATCA and CRS reporting for foreign-held assets, and Romania's own ANAF compliance regime each create specific obligations and opportunities. At Modern Practice we monitor regulatory developments continuously and proactively contact clients when a rule change creates an action point. This is not a value-added extra — it is a core part of the governance cycle that every mandate includes from day one.
Frequently Asked Questions
Answers to the questions clients ask most often before beginning a capital protection mandate.
What is the minimum capital threshold to work with Modern Practice?
We generally begin working with clients who have investable assets of at least 200,000 lei, as below this level the cost of building and maintaining a bespoke structure outweighs the benefit. That said, we are happy to conduct an initial risk-mapping session for anyone who is approaching this threshold and planning ahead.
How are your fees structured?
Modern Practice operates on a fee-only advisory model. We charge an initial mandate design fee and an annual governance fee based on the complexity of the mandate — not on the value of assets. We accept no distribution commissions, retrocessions, or product incentives of any kind. The full fee schedule is provided in writing before any engagement begins.
Can you work with assets held outside Romania?
Yes. Many of our clients hold assets in multiple EU jurisdictions. We structure the protection mandate to address the full picture, coordinate with local custodians and legal advisers in each country, and ensure that cross-border reporting obligations under CRS and Romanian ANAF requirements are met correctly.
How long does it take to implement a capital protection structure?
From the initial risk-mapping session to a fully implemented structure, the typical timeline is four to eight weeks. Insurance wrappers and holding vehicle registration add process time, but we manage these steps and keep you informed at every stage. Clients never wait without an update for more than five business days.
What happens during the annual mandate audit?
Once a year, we conduct a comprehensive review of the entire mandate: performance versus stated objectives, regulatory changes that affect the structure, changes in the client's personal or business circumstances, and any adjustments needed to maintain alignment with the written risk parameters. The audit produces a written report that clients retain for their own records.
A Mandate Designed Around Your Risk, Not a Template
Speak with a Modern Practice adviser to understand how a bespoke capital protection structure could be designed around your specific situation.
Request a Risk-Mapping Session