Decisions imposing sanctions adopted by the ASF Council in January 2023

Bucharest, 14 February 2023 – In January 2023, the Council of the Financial Supervisory Authority adopted several decisions imposing sanctions on entities/persons operating in the non-banking financial market for violation of some provisions of the relevant legislation.

CAPITAL MARKET

Farmaceutica Remedia S.A.

The obligation was imposed on the Farmaceutica Remedia S.A. Company to take the necessary measures to ensure that the financial statements for the year 2022 comply with International Financial Reporting Standards, respectively:

- the income recognised in the accounts is accurately measured and presented in the financial statements in accordance with IFRS 15;

- the consolidated financial statements are prepared in accordance with IFRS 10 Consolidated Financial Statements, paragraph B86 (B86). (b).

The obligation was imposed on the Farmaceutica Remedia S.A. Company to ensure the application of the provisions of Article 108 of Law no. 27/2017 on the preparation and submission of reports on transactions with related parties.

Mister Țăruș Valentin Norbert, in his capacity as Chairman of the Board of Directors of the Company Farmaceutica Remedia S.A., was fined by Lei 10,500 for:

- the non-conformity of the financial statements for 2021;

- failure to prepare and submit reports on significant related party transactions within the legal deadline and failure to ensure that an external auditor's half-yearly report on significant related party transactions is prepared and published.

INSURANCE MARKET

The Company Uniqa Asigurări S.A. was fined by Lei 21,500 for the following deeds:

• Infringement of Article 12 para. (2) and Art. 14 para. (1) letter b) of Law no. 236/2018 in conjunction with Art. 34 para. (6) and art. 38 para. (1) and (2) of the ASF Rule no. 22/2021 on insurance distribution, in that it did not provide customers with objective, complete, true and correct information on a specific insurance product;
• Infringement of Article 17(4) of Law No 236/2018 in conjunction with the provisions of Art. 8 para. (2) of Delegated Regulation (EU) 2017/2358 supplementing Directive (EU) 2016/97 of the European Parliament and of the Council as regards the requirements for the supervision and governance of products applicable to insurance undertakings and insurance distributors, in that it did not make available to all distributors information on changes to an insurance product relating to the coverage of risks associated with SARS-COV2 virus conditional on the existence of the green certificate;
• Infringement of Article 3(8) of the ASF Rule no. 22/2021 on insurance distribution, in the sense that it concluded two insurance contracts with a legal person to which amendments were made by additional acts changing the status of this legal person from affiliated agent to contracting party, and in this capacity remunerated distribution activities were carried out, a situation not permitted by the legal framework;
• Infringement of Article 14(7) letters a) and f) of Law no. 236/2018 in conjunction with the provisions of Art. 38 para. (2) of ASF Rule no. 22/2021, in the sense that, for certain products distributed through an intermediary, the company, as an insurance product originator, has not drawn up, in accordance with the applicable legal provisions, a standardised insurance product information document (PID) in its own right, distinct, accurately structured and without creating confusion.

Star Broker de Asigurare S.R.L. was issued a written warning for the following deeds:

-  violation of Article 11 para. (1) of ASF Rule no. 19/2018 on insurance distribution (in force until 31.08.2021), which is also maintained by the current legislation, i.e., the provisions of art. 4 para. (5)(b) of ASF Rule No 22/2021 on insurance distribution, in conjunction with the provisions of Art. 8(5)(b) of ASF Rule No 22/2021 on insurance distribution, in force from 1 January 2011. (5) of Law no. 236/2018 on insurance distribution, as amended, for failure to maintain or update the Register of Secondary Intermediaries (RIS);

- violation of the provisions of Art. 4 para. (14) of ASF Regulation no. 19/2018 on insurance distribution (in force until 31.08.2021), which is also maintained by the current legislation, namely the provisions of Art. 4 para. (12) of the ASF Rule no. 22/2021 on insurance distribution, with reference to Art. 35 para. (8) lit. c) of Law no. 236/2018 on insurance distribution, as amended, for the non-admission from the Register of Secondary Intermediaries (RIS), within the legal term, of a brokerage assistant natural person, as a result of failure to meet the professional training requirements and of a brokerage assistant legal person, as a result of failure to meet the professional training requirements of the head of the brokerage assistant legal person.

PRIVATE PENSIONS

BCR S.A. was given a written warning for identifying deficiencies in operational processes.

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About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance, private pension and capital markets. The FSA contributes to strengthening the integrated framework for the functioning of the three sectors, which together account for more than 10 million participants. More information can be found at www.asfromania.ro.