Sanctions imposed by the Financial Supervisory Authority on management of a private pension fund management company

Bucharest, 13 May 2022 - The Financial Supervisory Authority (A.S.F.) carried out a permanent inspection of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., as a result of which A.S.F. found that the general manager and the members of the Board of Directors of the company violated the rules of corporate governance and those concerning the accounting records of the administrator.

The General Manager was held liable for misconduct related to making entries in the accounts, which were not based on supporting documents, do not have an economic rationale, are contrary to the functionality of the accounts and do not reflect the real situation of the assets of the administrator BRD Societate de Administrare a Fondurilor de Pensii Private S.A.

The members of the company's Board of Directors were held liable for misconduct, from which it follows that they did not ensure prudent and correct management of the administrator BRD Societate de Administrare a Fondurilor de Pensii Private S.A., which affected the administrator's assets.

As a result of the aspects found during the control action and in accordance with the legal provisions, the Board of the Financial Supervisory Authority decided the following sanctioning measures:

1. Sanctioning of Ms. Alina Cecilia Andreescu, in her capacity as General Manager of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., with a fine of RON 100,000 and, in addition, with a prohibition, for a period of 180 days, to carry out the activities regulated by Law no. 411/2004 on privately managed pension funds, republished with subsequent amendments and supplementations and Law no. 204/2006 on voluntary pensions, as amended and supplemented;
2. Sanctioning of Mr Laurent Simon Doubrovine, in his capacity as member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., with a fine of RON 60,800 and, in addition, with a prohibition, for a period of 180 days, to carry out the activities regulated by Law no. 411/2004 on privately managed pension funds, republished as amended and supplemented and Law no. 204/2006 on voluntary pensions, as amended and supplemented;
3. Sanctioning of Ms. Raluca Ioana Moise, in her capacity as member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., with a fine of RON 60,800 and, in addition, with a prohibition, for a period of 180 days, to carry out the activities regulated by Law no. 411/2004 on privately managed pension funds, republished with subsequent amendments and supplementations and Law no. 204/2006 on voluntary pensions, as amended and supplemented;
4. Sanctioning of Mr. Arnaud Charles Marie René Brière de la Hosseraye, in his capacity as member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., with a fine of RON 55,500 and, in addition, with a prohibition, for a period of 180 days, to carry out the activities regulated by Law No. 411/2004 on privately managed pension funds, republished with subsequent amendments and additions, and Law No 204/2006 on voluntary pensions, as amended and supplemented.

In view of the aforementioned sanctions, A.S.F. has proceeded, in accordance with the provisions of Regulation no. 1/2019 as amended and supplemented, to reassess the members of the management structure whose authorisations were in force on 11 May 2022. Following the completion of the reassessment process, the A.S.F. Board decided:

1. Withdrawal of the approval granted to Ms. Alina Cecilia Andreescu, as General Manager of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.;
2. Withdrawal of the approval granted to Mrs. Raluca Ioana Moise, as a member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.;
3. Withdrawal of the approval granted to Mr. Arnaud Charles Marie René Brière de la Hosseraye, as a member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.

The sanctions imposed did not concern the activity carried out by BRD Societate de Administrare a Fondurilor de Pensii Private S.A in relation to the management of private pension funds. The interests of the participants and the assets of the funds, which are separate from the assets of the administrator, were not affected.

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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.