Sanctioning decisions and other measures adopted by the ASF Council in January 2024

Bucharest, 23 February 2024 - In January 2024, the Council of the Financial Supervisory Authority adopted several sanctioning decisions as well as a series of measures applicable to entities/persons operating in the non-banking financial market for breaching certain provisions of the relevant legislation.

CAPITAL MARKET

S.S.I.F. Vienna Investment Trust S.A.

• Sanctioning S.S.I.F. Vienna Investment Trust S.A. with a fine of RON 26,290;
• The establishment of an action plan for the company to remedy a deficiency identified during the audit.

The main situations identified concerned organisational issues (maintenance of the internal audit function, late notification of the termination of the contract with the internal auditor) and operational issues (failure of the communication server). 

Key Way Investments LTD Nicosia – Bucharest Branch

Sanctioning Key Way Investments LTD Nicosia - Bucharest Branch with a warning.

The main situations identified concerned organisational issues (notification of the ML/TF compliance officer, appointment of the directly responsible ML/TF manager).

The Investor Compensation Fund

• Sanctioning the Investor Compensation Fund with a written warning;
• Issuing a warning to Mr. Bogdan-Costel Movileanu, in his capacity as General Manager;
• The establishment of an action plan for the company to remedy a deficiency identified during the audit.

The main situations identified concerned organisational issues (failure to update the Fund's Articles of Association) and operational issues (failure of an external IT service provider to meet certain conditions).

S.A.I. Globinvest S.A.

• Sanctioning S.A.I. Globinvest S.A. with a fine amounting to RON 35,000;
• Issuing a warning to the members of the Board of Directors of the IMC and the managers of the company, namely Mr. Mihai Buliga, Mr. Walter Gheorghe Blaj, Mr. Ilie Biță Cenan, Mrs. Laura Stanca Magyari and Mrs. Alexandra Monica Miron;
• The establishment of an action plan for the company to remedy the deficiencies identified/with the role of preventing or correcting situations potentially generating deficiencies and optimizing the activity.

The main situations identified concerned operational issues (failure to make diligent efforts to recover a debt, inadequate application of knowledge measures to investors in managed funds) and the adequacy of the internal procedural framework.

INSURANCE MARKET

Impuls Broker de Asigurare S.R.L. was sanctioned with a written warning for non-compliance with the provisions of Art. 22 para. (2) of the ASF Rule No. 22/2021 on insurance distribution.

Wilson Insurance Broker de Asigurare S.R.L. was fined RON 49,600 for the following:

• failure to comply with the provisions of Art. 14 para. (1) letter a) of Law No. 236/2018 on insurance distribution, as amended and supplemented, in conjunction with the provisions of Art. 40 para. (4) of ASF Rule No. 22/2021 on insurance distribution;
• failure to comply with the provisions of Art. 13 para. (1) letters a), b), d) and e) of Law No. 236/2018 on insurance distribution, as amended;
• failure to comply with the provisions of Art. 45 para. (2) letter b) of ASF Rule No. 22/2021 on insurance distribution;
• non-compliance with the provisions of Art. 16 para. (1) letter a) of ASF Rule No. 4/2018 on the management of operational risks generated by IT systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervision Authority, as amended;
• failure to comply with the provisions of Art. 16 para. (2) letter a) of ASF Rule No. 4/2018 on the management of operational risks generated by IT systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervision Authority, as amended and supplemented;
• failure to comply with the provisions of Art. 16 para. (2) letter d) of ASF Rule No. 4/2018 on the management of operational risks generated by IT systems used by entities authorised/licensed/registered, regulated and/or supervised by the Financial Supervision Authority, as amended and supplemented
• failure to comply with the provisions of Art. 16 para. (2) letter e) of ASF Rule No. 4/2018 on the management of operational risks generated by IT systems used by entities authorised/licensed/registered, regulated and/or supervised by the Financial Supervision Authority, as amended and supplemented

Establishment of an action plan for the brokerage company Wilson Insurance Broker de Asigurare S.R.L. to remedy certain deficiencies found in ASF Rule No. 4/2018 on the management of operational risks generated by IT systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervisory Authority, as subsequently amended and supplemented.