Press release: Decisions imposing sanctions adopted by the Council of ASF in December 2022

Bucharest, January 26^th, 2023 – In December 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

 

Mecanică Fină S.A. – Mister MOLLO Sergio, in his capacity as Chairman of the Board of Directors of the company titled Mecanică Fină S.A., was fined by Lei 14,400 for failure to provide adequate information to investors on the consolidated financial statements of the company relating to the financial year 2021.

 

Mettexin S.A.

• The Board of Directors of the company titled Mettexin S.A. was imposed the obligation to order the necessary measures to ensure the publication of the audited financial statements for the financial years 2020 and 2021 within 60 days from the date of entry into force of the individual act.
• Mister Ștefan Claudiu Iulian, in his capacity as Chairman of the Board of Directors of the company titled Mettexin S.A., was fined by Lei 59,300, for failure to comply with the obligation imposed by A.S.F. Decision no. 384/29.03.2022 and the obligation to properly inform investors about the company's financial statements, with all components, for the financial year 2021.
• Mister David BURNEI, in his capacity as Chairman of the Board of Directors of the company titled Mettexin S.A., was fined by Lei 33,200, for failure to comply with the obligation imposed by A.S.F. Decision no. 384 dated 29/03/2022.
• Madam Maria Baranga, in her capacity as Chairman of the Board of Directors of the company titled Mettexin S.A., was fined by Lei 33,200, for failure to comply with the obligation imposed by A.S.F. Decision no. 384 dated 29.03.2022.

 

Navexim S.A.

• Madam Cristina Alina Manole, in her capacity as Chairman of the Board of Directors of the company titled Navexim S.A., was fined by Lei 38, 900 lei, for failure to comply with the obligation imposed by A.S.F. Decision no. 386 dated 29.03.2022 and the obligation to properly inform investors about the company's financial statements, with all components, for the financial year 2021.
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• Mister Laurențiu VIERU, in his capacity as Chairman of the Board of Directors of the company titled Navexim S.A., was fined by Lei 18, 500, for failure to comply with the obligation imposed by A.S.F. Decision no. 386 dated 29.03.2022.
• Madam Daniela BARBU, in her capacity as Chairman of the Board of Directors of the company titled Navexim S.A., was fined by Lei 18,500, for failure to comply with the obligation imposed by A.S.F. Decision no. 386 dated 29.03.2022.

 

Duplex S.A. - Mister Adrian Sabin NEAG, in his capacity as Sole Administrator of the company titled Duplex S.A., was fined by Lei 19,400, for failure to comply with the obligation imposed by A.S.F. Decision no. 388/29.03.2022, and the obligation to properly inform investors about the company's financial statements, with all components, for the financial year 2021.

The Sole Administrator of the company Duplex S.A. was imposed the obligation to order the necessary measures to ensure the publication of the audited financial statements for the financial years 2020 and 2021 within 60 days from the date of entry into force of the individual act.

 

Turism, Hoteluri, Restaurante Marea Neagră S.A. – the Directorate of the company titled Turism, Hoteluri, Restaurante Marea Neagră S.A. was imposed the obligation to take the necessary steps to ensure that the financial statements for the year 2022 comply with International Financial Reporting Standards, respectively:

- reconciliation between the operational database (generated by the software used) and the financial accounts so that there are no differences and so that revenue recognised in the accounts is accurately measured and presented in the financial statements in accordance with IFRS 15;

• application of the provisions of IAS 12 prescribing the accounting treatment for current and deferred income tax in respect of differences on the revaluation of non-current assets and the correction of deficiencies arising from manual database management;
• applying the provisions of IAS 37 and recording in the accounts a provision for litigation if it is more likely than not that a present obligation will exist at the end of the reporting period and the recognition criteria are met.

 

Impact Developer & Contractor S.A. București – Mister ANDRICI Adrian, shareholder of the company titled Impact Developer & Contractor S.A. București, was fined by Lei 10,600, for failure to report, on time, the fall below the threshold of 15% of the voting rights of the issuer.

 

S.S.I.F. Interfinbork Corporation S.A. - Further to the results of a periodic inspection conducted, the company was imposed a warning. At the same time, a plan of measures was imposed on the company to remedy some identified weaknesses/issues. The main weaknesses identified concerned some aspects of operational risk management related to IT systems and regular reporting to customers.

 

Nova Vision Investments A.F.I.A. S.A. – Further to the results of a periodic inspection conducted, the following sanctions were imposed/ measures were taken:

• warning imposed on Nova Vision Investments A.F.I.A. S.A.;
• Madam Jeanine Lazăr, in her capacity as General Manager, was fined by Lei 1,000;
• Mister Pompiliu Pasăre, in his capacity as fund manager, was fined by Lei 1,000;

 

At the same time, a plan of measures was imposed on the company to remedy some identified weaknesses/issues.

The main weaknesses identified concerned some aspects of operational risk management related to IT systems and non-compliance with internal procedures.

 

Transilvania Broker de Asigurare S.A. - Mister Coțiac Ion, in his capacity as Chief Executive of the company titled Transilvania Broker de Asigurare S.A., was fined by Lei 2,600, for non-compliance with the closed trading ban - Article 19(11) of EU Regulation 596/2014.

Mister NICULAE Dan, in his capacity as Chairman of the Board of Directors of the company titled Transilvania Broker de Asigurare S.A., was imposed a warning for non-compliance with the closed trading ban - Article 19(11) of EU Regulation 596/2014.

 

MAM Bricolaj S.A. – Mister GAVAN Cristian, in his capacity as Chairman of the Board of Directors of the company titled MAM Bricolaj S.A., was fined by Lei 2,600, for non-compliance with the obligation to notify transactions - Art.19 (1) EU Regulation 596/2014.

 

 

INSURANCE MARKET

Euroins România Asigurare-Reasigurare S.A. was fined by Lei 309,400 for the following deeds:

• violation of Article 21 para. (4) of the Law no. 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by vehicle and tram accidents, as amended;
• violation of the provisions of Article 21 para. (1) of Law 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by vehicle and tram accidents, as subsequently amended and supplemented;
• -violation of the provisions of Art. 21 para. (5) of Law 132/2017 on compulsory motor third party liability insurance for damage caused to third parties by vehicle and tram accidents, as subsequently amended and supplemented.

  Daw Management - Broker de Asigurare S.R.L. was fined by Lei 120,400, for violation of Art. 16 para. (2) lit. c) of the A.S.F. Rule no. 4/2018 on the management of operational risks generated by the IT systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as amended, for granting credentials with the right to issue in the important IT system to an unauthorized/unregistered person.

The executive chief of the brokerage company Daw Management - Broker de Asigurare S.R.L. was fined by Lei 15,000, for violation of Art. 14 para. (1) of the Law no. 236/2018 on insurance distribution, as amended and supplemented, respectively of Art. 40 para. (1), (2), (3) and (4) of the A.S.F. Rule no. 22/2021 on insurance distribution, for failure to carry out the analysis of customer requirements and needs and the assessment of suitability and adequacy, according to the DNT form.

 

Bravo-R Broker de Asigurare S.R.L. was fined by Lei 5,000, for violation of Art. 11 para. (5) of the Law no. 236/2018 on insurance distribution, as subsequently amended and supplemented, for failure to correctly use the bank account intended for distribution activity.

 

CMC Grup Broker de Asigurare S.R.L. was issued a written warning for violation of Article 22 para. (15) of A.S.F. Rule no. 22/2021 on insurance distribution, for failure to submit to the A.S.F., within 10 days from the date of termination of the executive manager's activity, the name and position of that person, as well as the documents showing the date of termination of the activity of the executive manager within the brokerage company.

The former executive manager of the brokerage company CMC Grup Broker de Asigurare S.R.L., was given a written warning for violation of Article 22 para. (14) of A.S.F. Rule no. 22/2021 on insurance distribution, for not notifying A.S.F. within 10 days from the date of termination of activity within the brokerage company.

 

 

PRIVATE PENSIONS

S.A.I. Raiffeisen Asset Management S.A. was issued a written warning as some faults were identified in its operational processes.