Bucharest, 17 November 17 2022 – In October 2022, the Council of the Financial Supervisory Authority adopted several decisions imposing sanctions on entities/persons operating in the non-banking financial market for violation of some provisions of the relevant legislation.
CAPITAL MARKET
SAI Muntenia Invest S.A. – Further to the results of a periodic inspection conducted at S.A.I. Muntenia Invest S.A. and to the managed entities, S.I.F. Muntenia S.A. and FDI Plus Invest, the following sanctions were imposed/ measures were taken:
At the same time, the company was imposed an action plan to remedy some weaknesses /situations identified.
The main weaknesses found concerned some aspects of the procedural/organisational framework and the management of operational risks generated by the IT systems used.
S.S.I.F. Otpimus Fintech S.A. – having regard to the fact that S.S.I.F. Otpimus Fintech S.A. continues not to meet the conditions on the basis of which the Permit no. 167 dated 12/12/2019 was issued, in further breach of Article 76 par. (1) of Act no. 126/2018 on markets in financial instruments, as subsequently amended and supplemented, ASF imposed a warning by Decision no. 1448 dated 20/10/2022, and suspended the business licence of S.S.I.F. Optimus Fintech S.A., in order to take the necessary steps to withdraw the business licence on request, but for no more than 180 days.
SAI Broker S.A. – F.I.A.I.P. Smart Money was found, further to the supervisory activity carried out, to have violated the provisions of Article 12 par. (1) sub-par. b) of Act no. 74/2015, in conjunction with the provisions of Article 18 of the EU Regulation no. 231/2013, since the directors of the company did not act with due diligence and caution so that investment decisions taken on behalf of the I.F.A. would be executed in accordance with the objectives of the fund and its investment strategy, thus not protecting the interests of investors by the way the acquisition is carried out and the shares issued by New Business Dimensions S.A. are reflected in the assets.
Measures: Mr. Adrian DANCIU, in his capacity as General Manager of S.A.I Broker S.A., was fined by Lei 3,300; Ms. Laura Nicoleta COVACIU, in her capacity as Deputy General Manager of S.A.I. Broker S.A., was fined by Lei 3,300.
INSURANCE MARKET
Euroins Romania Asigurare-Reasigurare S.A. was fined by Lei 422,600 for violation of providsions of Article 5 pars. (1), (2), (6) and (7) of Rule no. 38/2015 on the technical provisions established for the insurance activity, the method of their calculation for the purposes of drawing up the annual financial statements and the special register of assets covering them, in conjunction with the provisions of Article 3 para. (3) sub-par. (a) of Regulation No 38/2015 par. (1) of the same rule. The following measures have been imposed on the company: the inventory of the damage files pending before the courts concerning the claims made by third parties against the insurer by 31/12/2022 and the submission to ASF of the inventory and the measures taken.
Euroins România Asigurare-Reasigurare S.A. – Ms. Tanja BLATNIK, in her capacity as General Manager of the Company, was fined by Lei 86,100, for violation of the provisions of Article 37 par. (7) sub-par. b) of Act no. 237/2015 on the authorisation and supervision of insurance and reinsurance activity, as amended and supplemented, in conjunction with the provisions of Article 5 para. (1) sub-para. d) point (iv) of Rule 21/2016, as amended and supplemented, for the fact that the monthly reports submitted to ASF on the status of disputes pending before the courts did not ensure that they were complete, accurate and correspond to reality.
The Asigurarea Românească Asirom Vienna Insurance Group S.A. Company was imposed the following:
- written warning given for the late establishment of the damage reserve for two claim files and failure to update the approved damage reserve on the basis of the corresponding existing documents for two claim files, in breach of provisions of Article 5 par. (1) of ASF’s Rule no. 38/2015.
- written warning given for or failure to carry out a customer needs and requirements analysis (DNT) for two insurance policies, as such tha the Company did not comply with the provisions of Article 14 para. (1), para. (2) para. (3) of Law no. 236/2018.
Eurolife FFH Asigurări de Viață S.A. ewas imposed a fine by Lei 19,400 for the following transgressions:
- the Company failed to comply, in regards to three insurance policies, with the provisions of Article 12 para. (6) and Article 13 para. (10 sub-par. d) of Act no. 236/2018 on insurance distribution, as subsequently amended and supplemented;
- failure to comply, in regards to one insurance policy, with the provisions of Article 12 para. (6) and Article 13 para. (2) of Act no. 236/2018.
Groupama Asigurări S.A was imposed the following sanctions:
- a fine of Lei 90,500 for late payment of compensations, in breach of Article 21 para. (2) sub-par. (a) of the EC Treaty para. (4) of Law No. 132/2017 on motor third party liability insurance for damage caused to third parties by vehicle and tram accidents, as amended;
- a fine of LEI 10,000 for failing to set up systems and structures to ensure the adequacy and conformity of the data transmitted to ASF, in breach of the provisions of Article 37 para. (8) of Law no. 237/2015 on the authorization and supervision of insurance and reinsurance activity, as subsequently amended and supplemented.
Transilvania Broker de Asigurare S.A. was fined by Lei 7,520 for the following acts:
- violation of provisions of Article 4 para. (5) (b) and Article 11 para. (1) of the Financial Supervision Authority's Rule no. 19/2018 on insurance distribution (in force until 31/08/2021), which is also maintained by the current legislation, i.e., Article 4 para. (5) sub-par. (b) point (i) of the Financial Supervision Authority's Regulation No 22/2021 on insurance distribution, in relation to the provisions of Article 8 para. (5) of Law No. 236/2018 on insurance distribution, as amended, for failure to maintain or update the Register of Brokerage Assistants to Legal Entities, the Register of Secondary Intermediaries (RIS);
- infringement of Article 4 para. (14) of the Regulation of the Financial Supervisory Authority No 19/2018 on insurance distribution (in force until 31/08/2021), which is also maintained by the current legislation, namely the provisions of Article 4 para. (12) of the Financial Supervision Authority's Rule No. 22/2021 on insurance distribution, with reference to Article 35 para. (8) sub-par. d) of Law no. 236/2018 on insurance distribution, as subsequently amended and supplemented, for the non-registration, within the legal deadline, of the Register of Secondary Intermediaries (RIS).
Domas Insurance Broker de Asigurare S.R.L. was fined by Lei 5,200 for the following acts:
- violation of provisions of Article 10 para. (8) of Act no. 236/2018 on insurance distribution, as subsequently amended and supplemented, for failing to have a written policy that provides for the verification of the moral probity requirements of its own employees and secondary intermediaries during their employment with them;
- violation of provisions of Article 11 para. (1) of ASF’s Rule no. 19/2018, on insurance distribution, an act maintained by the current legislation as well, i.e., provisions of Article 4 para. (5) sub-par. b) of A. S.F.’s Rule no. 22/2021 on insurance distribution, in conjunction with the provisions of Article 8 para. (5) of Act no. 236/2018 on insurance distribution, as subsequently amended and supplemented, for failure to maintain or update the Register of Secondary Intermediaries (RIS).
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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 .
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