• Home Press Releases
    Press Release: Judgments ruled in favour of the Financial Supervisory Authority in November 2022

Press Release: Judgments ruled in favour of the Financial Supervisory Authority in November 2022

Bucharest, 6 December 2022 - In November 2022, courts ruled in favour of ASF in the following cases:

 

  1. Bucharest Court of Appeal – Case file no. 2300/2/2022

By Judgment no. 1984/08.11.2022, the Bucharest Court of Appeal rendered a decision in favour of ASF against claimant George Sorin Constantin, as member of the Board of Directors and member of the Audit Committee of S.S.I.F. BRK Financial Group S.A., at the sanctioning date.

Ruling made in brief:

“Dismisses the application as unfounded.

 With appeal within 15 days of service. (…)”

Subject matter of the case: annulment of ASF Decision no. 262/7.03.2022 by which claimant George Sorin Constantin, as member of the Board of Directors and member of the Audit Committee of S.S.I.F. BRK Financial Group S.A., was sanctioned with a warning for failure to comply with certain capital market provisions.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000406880&id_inst=2

 

  1. Bucharest Court of Appeal – Case file no. 2302/2/2022

By Judgment no. 2006/9.11.2022, the Bucharest Court of Appeal rendered the following decision in favour of ASF against claimant Gabriel Goia, as member of the Board of Directors of S.S.I.F. BRK Financial Group S.A., at the sanctioning date.

Ruling made in brief:

“Dismisses the application as unfounded.

 With appeal within 15 days of service.(...)”

Subject matter of the case: initial application by which claimant Gabriel Goia requested the court to annul ASF Decision no. 265/7.03.2022, by which he was sanctioned with a warning, as member of the Board of Directors of S.S.I.F. BRK Financial Group S.A.,  for failure to comply with certain capital market provisions.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000406882&id_inst=2

 

  1. Bucharest Court of Appeal – Case file no. 5382/2/2021

By Judgment no. 2156/4.10.2022, the Bucharest Court of Appeal rendered a decision in favour of ASF, against claimant Auto Martin S.R.L.

Ruling made in brief:

“Admits the plea of inadmissibility. Dismisses the head of claim for annulment of ASF Decision no. 203/12.02.2021, as inadmissible. Dismisses the remainder of the application as unfounded. Orders the claimant to pay 10,000 lei to PROMATERIS SA by way of costs. With appeal within 15 days of service.”

Subject matter of the case: : - annul ASF Decision no. 1311/06.11.2020 in its entirety and, consequently, annul the measure approving the simplified project relating to the operation to increase the share capital of Promateris S.A. carried out through SSIF IFB Finwest S.A. (Art. 1), as well as the measures provided for in Art. 2 to 5 of that decision;

- annul ASF Decision no. 203/12.02.2021 rejecting the preliminary complaint against ASF Decision no. 1311/6.11.2020.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000398760&id_inst=2

 

 

  1. High Court of Cassation and Justice – Case file no. 2984/2/2019*

By Judgment no. 5389/4.10.2022, the Bucharest Court of Appeal rendered a decision in favour of ASF, against claimant Botez Cristian.

Ruling made in brief:

Admits the appeal brought by the defendant Financial Supervisory Authority against Judgment no. 381 of 02 March 2022, delivered by the Bucharest Court of Appeal - 8th Division for Administrative and Fiscal Litigation.. Sets aside the judgment under appeal and ruling on appeal, dismisses the application for a stay of execution of the decision of the ASF Council on the appointment of the Chairman of the Board of Directors. Final.”

Subject matter of the case: the appeal lodged by ASF against Judgment no. 381/23.06.2020, by which the Bucharest Court of Appeal ordered the following: ”Within the limits of the decision of the High Court of Cassation and Justice with retrial no.180/19.01.2021: Admits the application for suspension. Suspends the execution of the Decision of the Council of the Financial Supervisory Authority on the appointment of the Chairman of the Board of Directors of F.G.D.S.P.P. Enforceable. Orders the defendant to pay the applicant 50 lei by way of costs. With an appeal within 5 of service, filed at the seat of this court.”

Notes: on the merits, the case concerned the appeal against the procedure for appointing the Chairman of the Board of Directors of the Private Pension Rights Guarantee Fund (FGDSPP).

The ruling of the court can be consulted at:

https://www.scj.ro/1094/Detalii-dosar?customQuery%5B0%5D.Key=id&customQuery%5B0%5D.Value=200000000397206

 

 

  1. High Court of Cassation and Justice – Case file no. 4275/2/2021

By Judgment no. 5555/13.10.2022, the High Court of Cassation and Justice rendered a decision partly in favour of ASF against Browne Woodthorpe Robert, as Chairman of the Supervisory Board of Societate de Asigurare-Reasigurare City Insurance S.A. at the sanctioning date.

Ruling made in brief:

”Adimts the appeal brought by claimant Browne Woodthorpe Robert against Judgment no. 1096 of 7 July 2021 (...). Sets aside the judgment under appeal and ruling on appeal: Admits the appeal brought by claimant Browne Woodthorpe Robert against defendant the Financial Supervisory Authority. Suspends, in part, the execution of Decision no. 723/03.06.2021 issued by the Financial Supervisory Authority, namely with regard to the principal penalty of a fine of 1,000,000 lei. Dismisses the remainder of the application as unfounded.

Final.”

Subject matter of the case: the appeal brought by the appellant against Judgment no. 1096/7.07.2021, by which the Bucharest Court of Appeal dismissed the appellant's action as unfounded.  

Notes: on the merits, the case concerned an application for suspension of the execution of ASF Decision no. 723/03.06.2021 on the imposition of a fine and withdrawal of the authorisation granted by ASF to Mr. Browne Woodthorpe Robert, in his capacity as Chairman of the Supervisory Board of Societate de Asigurare-Reasigurare City Insurance S.A.

Thus, by its decision, the court only suspended the execution of Article 1 of the ASF decision, which concerns the application of the fine in the amount of 1,000,000 lei and maintained the complementary sanction of the withdrawal of the authorisation granted by ASF as a member of the Supervisory Board of Societate de Asigurare-Reasigurare City Insurance S.A.

 

The ruling of the court can be consulted at:

https://www.scj.ro/1094/Detalii-dosar?customQuery%5B0%5D.Key=id&customQuery%5B0%5D.Value=200000000397107

 

  1. High Court of Cassation and Justice- Case file no. 5404/2/2020

By Judgment no. 5626/13.10.2022, the High Court of Cassation and Justice rendered a decision in favour of ASF against claimant  Milena Guentcheva, as General Manager of Euroins România Asigurare-Reasigurare S.A at the sanctioning date.

Ruling made in brief:

„Admits the appeal brought by the defendant Financial Supervisory Authority against Judgment no. 128 of 05 February 2021, delivered by the Bucharest Court of Appeal - 8th Division for Administrative and Fiscal Litigation.. Sets aside the judgment under appeal and remits the case to the same court for a retrial. Final.”

Subject matter of the case: the appeal lodged by ASF against Judgment no. 128/5.02.2021 by which the Bucharest Court of Appeal ordered the following: “Admits the application in part. Annuls in part ASF Decision no. 1139/28.09.2020. Exempts the applicant from the penalty of a fine of 10,000 lei and the additional penalty of withdrawal of authorisation.”

Notes: on the merits, the case concerned the annulment of ASF Decision no. 1139/28.09.2020 imposing a fine of 100,000 lei on Milena Guentcheva, General Manager of Euroins România Asigurare-Reasigurare S.A., at the sanctioning date. The same decision also imposed the additional sanction of withdrawal of the approval granted by ASF to Ms Milena Guentcheva, as General Manager of Euroins România Asigurare-Reasigurare S.A.

The ruling of the court can be consulted at:

https://www.scj.ro/1094/Detalii-dosar?customQuery%5B0%5D.Key=id&customQuery%5B0%5D.Value=200000000387806

 

  1. Bucharest Court of Appeal – Case file no. 2297/2/2022

 

By Judgment no. 2177/31.10.2022, the Bucharest Court of Appeal rendered the following decision, in favour of ASF, against claimant Adriana Monica Ivan, as General Manager and member of the House Investment Committee of SSIF BRK (in the period audited: 29.10.2019 -30.08.2021).

Ruling made in brief:

“Dismisses the application as unfounded. Orders the refund to the applicant of the amount of 50 Eur, representing the additional stamp duty paid.

With appeal within 15 days of service (...)”

Subject matter of the case: annulment of ASF Decision no. 254/07.03.2022 sanctioning claimant Adriana Monica Ivan, in her capacity as General Manager and member of the House Investment Committee of SSIF BRK (during the period audited 29.10.2019 - 30.08.2021) with a fine in the amount of 22,900 lei, as a result of the irregularities found by the authority following the periodic inspection carried out at the company.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000406877&id_inst=2

 

  1. Bucharest Court of Appeal – Case file no. 2265/2/2022

By Judgment no. 2234/29.11.2022, the Bucharest Court of Appeal rendered a decision in favour of ASF, against claimant Grant Thornton Audit SRL.

Ruling made in brief:

”Dismisses the application as unfounded.

 With appeal within 15 days of service (...).”

Subject matter of the case:  Grant Thornton SRL’s application for:

  • annulment of ASF Decision no. 1344/22.10.2022, by which the Authority ordered:

Art. 1. - Withdrawal of Approval no. 198 dated 14.06.2019 granted to Grant Thornton Audit S.R.L. to act as financial auditor for insurance and/or reinsurance companies regulated and supervised by A.S.F. - Insurance-Reinsurance Sector.

Art. 2. - Removal from the list of financial auditors approved by ASF. - Insurance-Reinsurance sector, published on the website of the Financial Supervisory Authority, of the company Grant Thornton Audit S.R.L. having the identification data tax no. 27651515, registered with the National Trade Register under no. J40/10484/01.11.2010, CAFR no. 1015/2010, with office in Bucharest, str. Gara Herăstrău nr. 4D, Biroul nr. 2, et. 5, Sector 2”.

  • annulment of ASF Decision no. 94/28.01.2022 on the preliminary complaint.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000406836&id_inst=2

 

  1. Bucharest Court of Appeal – Case file no. 6252/2/2021

By Judgment no. 2244/29.11.2022, the Bucharest Court of Appeal rendered a decision in favour of ASF, against Vivendi Internațional SRL.

Ruling made in brief:

”Admit the plea of lack of standing of claimant Vivendi International SRL with regard to head of claim 1 and head of claim 2, only with regard to the contested aspects relating to the establishment and sanctioning of contraventions concerning Societatea de Asigurare - Reasigurare City Insurance SA, and accordingly dismisses those heads of claim as being submitted by a person without standing. The plea of lack of standing in respect of the other claims is upheld and dismissed accordingly as devoid of interest. In accordance with Art. 451-453 of the Code of Civil Procedure, orders the claimant VIVENDI INTERNAȚIONAL SRL to pay to defendant ASF the amount of 10,000 (ten thousand) lei by way of legal costs, representing the lawyer's fee reduced accordingly. With appeal within 15 days of service (...)”

 

Subject matter of the case: the action by which Vivendi International SRL requests the court:

  • to find that ASF has tacitly approved the Short-Term Funding Plan for the restoration of the levels of eligible basic equity covering the Minimum Capital Requirement (MCR), which is a mandatory condition for the maintenance of the underwritten company's authorisation to operate and, consequently, an order that ASF issue a decision approving the Short-Term Funding Plan allowing the company to restore the levels of eligible equity covering the MCR solvency requirements, with reinstatement within the statutory period of 3 months laid down in art. 100 para. (2) of Law no. 237/2015;
  • annulment of ASF Decision no. 1148/17.09.2021, by which the Authority ordered, inter alia:

(i) sanctioning SAR City Insurance S.A. with a fine of 273,000 lei;

(ii) withdrawal of the operating licence;

(iii) the establishment of a state of insolvency.

Prior to this solutions, by Judgment of 14.07.2022, the court separated the action brought by SAR City Insurance S.A. from the action brought by Vivendi International SRL, thus opening a new case, no. 5230/2/2022. In this case, by Judgment no. 1752/17.10.2022, the court took note of the waiver of the claimant SAR City Insurance S.A. - through the receiver  CITR Filiala Cluj SPRL to the proceedings against defendant ASF. The judgment is not final and can be appealed.

The ruling of the court can be consulted at:

https://portal.just.ro/2/SitePages/Dosar.aspx?id_dosar=200000000400163&id_inst=2