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    Sanctions and measures applied by the Board of the Financial Supervisory Authority
Sanctions and measures applied by the Board of the Financial Supervisory Authority

Bucharest, 4 June 2021 - The Financial Supervision Authority (A.S.F.) carried out during 2019-2021 at the Insurance-Reinsurance Company City Insurance S.A., classified in category 4 - intensive supervision, several inspection actions at the insurer's head office (on-site) as well as permanent inspections (off-site), based on which were applied, both to the company and its management, several sanctions consisting of fines, being also imposed measures in order to remedy the found deficiencies.

As a result of the issues identified during the inspection and according to the legal provisions, the Board of the Financial Supervisory Authority decided the following measures and sanctions:

1. Sanctioning the members of the Board of Directors of the Insurance-Reinsurance Company City Insurance S.A., with the main sanction consisting of a fine and the complementary sanction consisting in withdrawing the authorization granted by A.S.F., as follows:

  1. Renato Szilagyi - Chairman of the Board of Directors, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  2. Buzerea Barbu Mircea - Vice-chairman of the Board of Directors, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  3. Spyridon Stavros Mavrogalos Fotis - member of the Management Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.

2. Sanctioning the members of the Supervisory Board of the Insurance-Reinsurance Company City Insurance S.A., with the main sanction consisting of a fine and the complementary sanction consisting in withdrawing the authorization granted by A.S.F., as follows:

  1. Browne Woodthorpe Robert - Chairman of the Supervisory Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  2. Rossler Max Walter - Vice-chairman of the Supervisory Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  3. Pascale Cristian - member of the Supervisory Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  4. Arampova Aelita - member of the Supervisory Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.;
  5. Papanikolaou Epameinondas - member of the Supervisory Board, a fine amounting to 1,000,000 lei and withdrawal of the authorization granted by A.S.F.

3. Suspension of the voting rights related to the shares held by the shareholder Vivendi International S.R.L., in accordance with the provisions of art. 163 para. (6) and para. (8) of Law no. 237/2015;

4. Sanctioning the Insurance-Reinsurance Company City Insurance S.A. with a fine amounting to 2,930,766 lei and establishing in its charge of the obligation to submit to the approval of the Financial Supervisory Authority of a financing and recovery plan in order to restore the level of eligible own funds, so as to cover the capital requirements;

5. Appointment of the Policyholder Guarantee Fund so as to temporarily replace the management body of the insurer, with a term of office of 4 months from the date of entry into force of the decision, with the possibility of extending it under art. 36 of Law no. 246/2015.

 

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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 markets, private pensions, as well as the capital market. The FSA contributes to strengthening the integrated functioning framework of the three sectors, amounting to over 10 million participants. More information can be found on www.asfromania.ro.


04/06/2021
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