Press briefing Sanctioning decisions adopted by the A.S.F. Board in May 2022

Bucharest, 9 June 2022 - In May 2022, the Board of the Financial Supervisory Authority adopted several decisions sanctioning entities/persons operating in the non-banking financial market for the violation of certain provisions of the relevant legislation.

Capital Market

S.A.I. Swiss Capital Asset Management S.A.

Following the results of a regular audit of S.A.I. Swiss Capital Asset Management S.A., the following measures were ordered:

• a fine of 10,400 lei was imposed on S.A.I. Swiss Capital Asset Management S.A.;
• sanctioning Mrs. Ioana Valeria Avram with a warning in her capacity as General Manager and Compliance Officer in the field of prevention and combating money laundering and terrorist financing;
• sanctioning Mrs. Ionela Vaitiș with a fine of 2,500 lei as Deputy General Manager and member of the Board of Directors;
• sanctioning of Mr. Robert Iulian Dănilă with a fine of 6,000 lei as Compliance Officer (RCCO);
• sanctioning Mr. Marian Răzvan Bucur with a fine of 2,300 lei as Chairman of the Board of Directors and member of the Audit Committee;
• sanctioning Mr. Florin Costel Isac with a fine of 2,100 lei as a member of the Board of Directors and member of the Audit Committee
• sanctioning Mr Ioan Cavaleru with a warning, as back-office operator and network administrator
• the imposition of a plan of measures to remedy the deficiencies found.

The main shortcomings identified concerned aspects of governance, the procedural/organisational framework, the work of key functions and the operational work of the company.

Sanctioning S.S.I.F. Interdealer Capital Investment S.A. with a warning.

S.A.I. Broker S.A.

Sanctioning of Mr Adrian Danciu (President - General Manager) and Mr Cosmin-Bogdan Ilieș (internal control department representative/compliance officer) with a warning according to A.S.F. Decisions no. 670 and 669/31.05.2022 respectively.

Prebet S.A.

Sanctioning of Aușel Imobiliare S.R.L. with a fine of 40,700 lei, as a shareholder of the company, for non-compliance with the provisions of Article 39 para. (2) of Law no. 24/2017.

Insurance

Insurance companies

Euroins România Asigurare Reasigurare S.A. – sanctioning with a fine of 419,900 lei for late payment of damage claims and non-payment of late penalties

Brokers

Mercedes – Benz Insurance Broker S.R.L. – sanctioning with a fine in the amount of 5,791 lei, as the brokerage company had not implemented two-factor authentication, in violation of the provisions of Article 16 para. (2) letter e) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended and supplemented.

Renomia - SRBA Insurance Broker S.R.L. – sanctioning with a fine in the amount of 7,897 lei, as the brokerage company had not implemented two-factor authentication, in violation of the provisions of Article 16 para. (2) letter e) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended.

Millenium Insurance Broker (M.I.B.) S.A. – sanctioning with a fine in the amount of 9,270 lei, as the company did not ensure compliance with the requirement laid down in Article 16 para. (2) letter d) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as subsequently amended and supplemented, in terms of monitoring to ensure control over user access

Safety Broker de Asigurare S.A. - sanctioning with a fine of 18,477 lei, as the company did not ensure compliance with the requirements laid down in Article 16 para. (2) letter d) of A.S.F. Rule no. 4/2018 on the management of operational risks generated by information systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as subsequently amended and supplemented, regarding the logging, monitoring, in accordance with the specific regulations on the matter, to ensure control over user access, the place from which access takes place and the data accessed, including personal data.

Inter Broker de Asigurare S.R.L. sanctioning with a fine in the amount of 117,996 lei, as the brokerage company did not ensure the use of personalized credentials only by authorized/registered staff, in violation of the provisions of Article 16 para. (2) letter c) of A.S.F. 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, as amended.

Amsterdam Broker de Asigurare S.R.L. –sanctioning with a written warning as the company failed to comply with the legal deadline for submitting changes to the identity card of the brokerage company's director.

Comisasig Broker de Asigurare S.R.L. - sanctioning with a written warning as the company has amended its articles of association without the approval of A.S.F.

Private pensions

Sanctions imposed to BRD Societate de Administrare a Fondurilor de Pensii Private S.A

Mrs. Alina Cecilia Andreescu, in her capacity as General Manager of BRD Societate de Administrare a Fondurilor de Pensii Private S.A., was fined 100,000 lei and, in addition, was prohibited, for a period of 180 days, from carrying 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, with subsequent amendments and additions

The general manager was held liable for misconduct related to making entries in the accounting records, 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 manager of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.

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., was fined 60,800 lei and, in addition, banned, for a period of 180 days, from carrying 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

Mrs. 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., was fined 60,800 lei and, in addition, was prohibited, for a period of 180 days, from carrying 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, with subsequent amendments and additions.

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., was fined 55,500 lei and, in addition, was prohibited, for a period of 180 days, from carrying out the activities governed by Law no. 411/2004 on privately managed pension funds, republished as subsequently amended and supplemented, and Law no. 204/2006 on voluntary pensions, as subsequently amended and supplemented.

The members of the company's Board of Directors were held liable for misconduct, from which it results 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.

In view of the aforementioned sanctions, A.S.F. has proceeded, in accordance with the provisions of Regulation no. 1/2019 as amended, to reassess the members of the management structure, whose authorizations were in force on 11.05.2022. Following the completion of the reassessment process, the A.S.F. Board decided:

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.

Withdrawal of the approval granted to Mrs Raluca Ioana Moise, as Member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.

Withdrawal of the approval granted to Mr Arnaud Charles Marie René Brière de la Hosseraye, as Member of the Board of Directors of BRD Societate de Administrare a Fondurilor de Pensii Private S.A.

Sanctions imposed to BT Pensii Societate de Administrare a Fondurilor de Pensii Facultative S.A.

Mrs. Corina Mădălina Cojocaru, in her capacity as Deputy General Manager and de jure replacement of the General Manager of BT Pensii Societate de Administrare a Fondurilor de Pensii Facultative S.A. for the period 01.12.2021 - 31.03.2022, was sanctioned with a written warning for a situation of non-compliance with the legal provisions regarding the transfer of a participant to another voluntary pension fund.