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    Press briefing: Sanctioning decisions adopted by the ASF Council in March 2023

Press briefing: Sanctioning decisions adopted by the ASF Council in March 2023

Bucharest, 11 April 2023 - In March 2023, the Council of the Financial Supervisory Authority adopted several decisions sanctioning entities/persons operating in the non-banking financial market for violation of certain provisions of the relevant legislation.

 

CAPITAL MARKET

BRD - GSG S.A. – credit institution intermediary

Following the results of a regular inspection, a warning was imposed on Mr. Gabriel Morariu, as senior arbitrator. The deficiency found concerned aspects relating to the way of communicating with clients.

A plan of measures was also imposed on the company to remedy some of the situations identified.

S.S.I.F. Swiss Capital S.A.

Following the results of a periodic inspection, a warning was imposed on S.S.I.F. Swiss Capital S.A. and Mr. Robert Cosmin Pană, as the person in charge of the compliance position. The deficiency found concerned issues relating to the reporting of OTC transactions through an approved publication mechanism (APA).

At the same time, a plan of action was imposed on the company to remedy some identified situations and mitigate some risks.

S.A.I. Broker S.A.

Following the results of a periodic inspection, S.A.I. Broker S.A. was sanctioned with a warning. The deficiency found concerned aspects of operational risk management related to IT systems.

At the same time, the company was required to draw up a plan of measures to remedy certain situations identified and mitigate certain risks.

 

S.S.I.F. Finaco Securities S.A.

Following the results of a regular inspection, the following sanctions were imposed:

  • a warning was imposed on S.S.I.F. Finaco Securities S.A.;
  • a fine of RON 2,550 to Mr. Paul Dan Viorel - Chairman of the Board of Directors/General Manager;
  • a fine of RON 1,650 to Mr Bulimente Mario Paul - Deputy General Manager;
  • a fine of RON 2,400 to Ms. Ghinea Maria and Mr. Cristian Gheorghe Iacob - members of the Audit Committee;
  • a warning to Mr. Ioan Nicolae Goldberger and Mr Virgil Aldea - members of the Board of Directors.

The main deficiencies found concerned organisational issues, issues relating to the work of the Audit Committee, as well as the evaluation of the business continuity and emergency plan.

At the same time, the company was required to draw up a plan of measures to remedy certain situations identified and mitigate certain risks.

Studioul Cinematografic Animafilm S.A.

  • by Decision no. 309/30.03.2023 the company was sanctioned with a warning for failure to comply with the obligation to publish the financial report for 2021 within the legal deadline.
  • by Decision no. 311/30.03.2023, the company was required to take the necessary measures to ensure the publication of the audited financial statements for the financial year 2021 and of the Financial Auditor's full report in accordance with the provisions of art. 122 and art. 124 of Law no. 24/2017 in conjunction with art. 223 letter A. para. (1) of the ASF Regulation no. 5/2018, until the expiry of the deadline provided for in art. 223 letter A para. (1) of ASF Regulation no. 5/2018 for the publication of the Financial Report for the year 2022, i.e. no later than 4 months after the end of the financial year.

Prima Construct S.A. - by Decision no. 315/30.03.2023 the company was sanctioned with a fine of RON 15,000 for failure to comply with the obligation to publish the financial report for 2021 within the legal deadline.

Sinter Ref S.A. - by Decision no. 313/30.03.2023 the company was sanctioned with a warning for failure to publish the financial report for 2021 within the legal deadline.

 

Electroconstrucția Elco Timișoara S.A.

  • by Decision no. 316/30.03.2023, the company was obliged to take the necessary measures to ensure the publication of the audited financial statements for the financial year 2021 and the full report of the financial auditor in accordance with the provisions of Art. 122 and Art. 124 of Law no. 24/2017 in conjunction with Art. 223 lit. A. para. (1) of ASF Regulation no. 5/2018, until the expiry of the deadline provided for in art. 223 letter A para. (1) of ASF Regulation no. 5/2018 for the publication of the Financial Report for the year 2022, i.e. no later than 4 months after the end of the financial year.
  • by Decision no. 317/30.03.2023 the company was sanctioned with a fine of RON 15,000 for failure to comply with the obligation to publish the financial report for 2021 within the legal deadline.

Electroconstrucția Elco Alba Iulia S.A. - by Decision no. 310/30.03.2023 the company was sanctioned with a warning for failure to publish the financial report for 2021 within the legal deadline.

Perseus Finetech S.A. - by Decision no. 314/30.03.2023 the company was sanctioned with a fine of RON 15,000 for failure to comply with the obligation to publish the financial report for 2021 within the legal deadline.

BVB S.A. – by Decision no. 199/01.03.2023 Mr. Bogdan Alexandru - Drăgoi (Chairman of Lion Capital, shareholder of BVB S.A.) was fined RON 10,000 for non-compliance with the provisions of Art. 71 para. (1) and art. 74 par. (2) of Law no. 24/2017, republished, as amended and supplemented.

Raiko Transilvania S.A.

  • by Decision no. 233/10.03.2023 Mr. Tomasz Kurcin (shareholder of Raiko Transilvania S.A.) was fined RON 13,800 for failure to comply with the provisions of Article 71 para. (1) and art. 74 par. (2) of Law no. 24/2017, republished, as amended and supplemented.
  • by Decision no. 312/30.03.2023 the company was fined RON 15,000 for failure to comply with the obligation to publish the financial report for 2021 within the legal deadline.

Societatea de Construcții Napoca S.A. Cluj – Napoca – by Decision no. 260/16.03.2023 Mr. Bene Ioan Luca (indirect shareholder of the issuer Societatea de Construcții Napoca S.A. Cluj - Napoca) was sanctioned with a fine in the amount of RON 25,001, for non-compliance with the provisions of Art. 39 of Law no. 24/2017, republished, as amended and supplemented.

UCM Reșița S.A. – by Decision no. 261/16.03.2023, the company ICESA S.A. (shareholder of the issuer UCM Reșița) was fined RON 56,000 for failure to comply with the provisions of Art. 39 of Law no. 24/2017, republished, as amended and supplemented.

 

INSURANCE MARKET

Euroins România Asigurare Reasigurare S.A. was fined RON 124,500 for the following:

  • violation of Art. 3 para. (1) of Rule no. 4/2018 on the management of operational risks generated by IT systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, in the sense that the Company did not adequately identify all important systems, i.e. did not include the Arhimed application in these software systems.
  • violation of Art. 14 para. (1), Art. 18 para. (12) and art. 21 par. (1) and para. (3), of Law no. 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by accidents involving vehicles and trams, as subsequently amended and supplemented, in the sense that:
  • it did not, at the request of the injured party or his representative, within 7 days of the request, submit the maximum amount of compensation;
  • the company has not replied to the claim of the requesting party within 30 days of the date of submission of the claim for compensation, either by making a justified written offer of compensation, sent with acknowledgement of receipt, or by notifying the injured party in writing, with acknowledgement of receipt, of its reasons for not approving the claim for compensation in whole or in part;
  • the company has not notified the injured party/insured person in writing, within 5 working days of the date of opening the claim file and drawing up the statement of claim, of its intention to carry out investigations, and/or the reasoned result of the investigations has not been communicated within 3 working days as of completion.
  • violation of Art. 18 para. (2) letter (b), Art. 18 para. (4), and Art. 19 para. (5) letter h), letter k) of Rule no. 20/2017 on motor insurance in Romania, in the sense that:
    • the company did not inform the injured party in writing of the documents to be submitted in order to settle the claims for compensation, neither in the notification process nor in the report of the finding, which does not include the list of documents to be submitted by the injured party in order to complete the damage file and make the payment;
    • the report of finding does not inform the injured party of his/her right to have the damage repaired by any vehicle repair shop.

Euroins România Asigurare Reasigurare S.A.

Withdrawal of the company's operating licence, noting indications of the company's insolvency. The Council decided to file a request for the opening of bankruptcy proceedings and to appoint the Policyholders Guarantee Fund (FGA) as interim administrator of the company, with the task of ensuring the administration and management of the company's business and taking the necessary measures to preserve its assets until the official receiver is appointed. The company was also fined RON 224,100.

More information in the press release:

https://www.asfromania.ro/ro/a/2710/autoritatea-de-supraveghere-financiara-retrage-autorizatia-de-functionare-a--euroins-romania-si-constata-starea-de-insolventa-a-societatii

 

Allianz-Țiriac Asigurări S.A. was fined RON 78,000 for the following:

  • violation of Art. 21 para. (4) and (2) of Law no. 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by accidents involving vehicles and trams, as subsequently amended and supplemented, in the sense that:
  • did not notify the injured party of the rejection of the claims for compensation and the reasons for the rejection;
  • did not pay the compensation within 10 days from the date of acceptance of the offer of compensation.

 

Groupama Asigurări S.A. was fined RON 74,900 for the following:

  • violation of the provisions of Art. 21 para. (4) and (2) of Law no. 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by accidents involving vehicles and trams, as subsequently amended and supplemented, in the sense that:
  • did not notify the injured party of the rejection of the claims for compensation and the reasons for the rejection;
  • did not pay the compensation within 10 days from the date of acceptance of the offer of compensation.

 

PRIVATE PENSIONS

NN Asigurări de Viață S.A.

  • Gerke Anno Witteveen, in his capacity as substitute General Manager of NN Asigurări de Viață S.A., for the period 01.10.2021 - 31.08.2022, was sanctioned with a fine of RON 17,550 after identifying deficiencies in operational processes.
  • Mihai Tânțaru, as Investment Manager of NN Asigurări de Viață S.A., was sanctioned with a written warning for not exercising the right to vote in all general meetings of shareholders of the companies in whose share capital the assets of the voluntary pension fund were invested.