Sanctioning decisions adopted by the ASF Council in August 2024

Bucharest, 6 September 2024 - The Council of the Financial Supervisory Authority adopted, in August 2024, several sanctioning decisions, as well as a series of measures applicable to certain entities/persons operating in the non-banking financial market for breaching certain provisions of the relevant legislation.

INSURANCE MARKET

1. Renomia Insurance Reinsurance Broker S.R.L. was sanctioned with a fine in the amount of RON 23,500 for the following:

• failure to comply with the provisions of Art. 15 para. (1) in relation to Annex 2 letter B item 2 of ASF Rule no. 4/2018 on the management of operational risks generated by the IT systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervisory Authority;
• failure to comply with Art. 4 para. (5) letter b) item (i) of ASF Rule no. 22/2021 on insurance distribution, in relation to the provisions of Art. 8 para. (5) of Law 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 4 para. (12) of ASF Rule no. 22/2021 on insurance distribution, in relation to the provisions of Art. 35 para. (8) letter c) of Law no. 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 14 para. (1) letter a) of Law 236/2018 on insurance distribution, 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), e), item (ii) and item (iii) of Law no. 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 15 para. (1) in relation to Annex 2 letter F item 2 of ASF Rule no. 4/2018 on the management of operational risks generated by the IT systems used by entities authorised/approved/registered, regulated and/or supervised by the Financial Supervisory Authority;
• failure to comply with the provisions of Chapter 4, item 245 of Subsection 4.5.3. `Specific provisions on intermediation activity`, para. (2) of the Accounting Regulations on the individual annual financial statements and consolidated annual financial statements of insurance and/or reinsurance brokers, approved by ASF Rule no. 36/2015;
• failure to comply with the provisions of Chapter 12 - Statement of Accounts - item 514 - Class 7 - `Income accounts` of the Accounting Regulations on the individual annual financial statements and consolidated annual financial statements of insurance and/or reinsurance brokers, approved by ASF Regulation no. 36/2015.

2. EXA Broker de Asigurare S.R.L. was sanctioned with a fine in the amount of RON 12,600 and the withdrawal of the operating license for the following:

• failure to comply with the provisions of Art. 4 para. (9) of ASF Rule no. 22/2021 on insurance distribution;
• failure to comply with the provisions of Art. 13 para. (1) letters a), b) and e), items (ii), (iii) and (iv) of Law no. 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 12 para. (6) letter a), items (i) - (iii) of Law no. 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 14 para. (6) of Law 236/2018 on insurance distribution, in conjunction with the provisions of Art. 38 para. (1) and para. (3) letter a) of ASF Rule no. 22/2021 on insurance distribution;
• 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 the IT systems used by entities authorized/approved/registered, regulated and/or supervised by the Financial Supervisory Authority;
• failure to comply with the provisions of Art. 11 para. (4) of Law no. 236/2018 on insurance distribution;
• failure to comply with the provisions of Art. 3 para. (1) of ASF Rule no. 32/2015, in conjunction with the provisions of Chapter 3, Section 3.2, item 82, para. (1) of the Accounting Regulations on individual annual financial statements and consolidated annual financial statements of insurance and/or reinsurance brokers, approved by ASF Rule no. 36/2015;
• failure to comply with the provisions of Chapter 12 - Statement of Accounts - item 514 - Class 4 - `Accounts receivable from third parties`, respectively Class 7 - `Revenue accounts` and Chapter 14 - Function of accounts, item 516, para. (1) - Group 41 - `Settlements related to the activity of creation of insurance and distribution products` and Group 70 - `Net turnover` of the Accounting Regulations on the individual annual financial statements and consolidated annual financial statements of insurance and/or reinsurance brokers, approved by ASF Rule no. 36/2015;
• failure to comply with the provisions of Article 10 para. (2) of ASF Regulation no. 13/2019 on establishing measures to prevent and combat money laundering and terrorist financing through the financial sectors supervised by the Financial Supervisory Authority.

CAPITAL MARKET

SAI Star Asset Management S.A.

Measures ordered as a result of the periodic control: a plan of measures to be implemented by SAI Star Asset Management S.A.

The main situations identified during the control related to the updating/completion of the internal procedural framework.

SSIF Estinvest S.A.

Measures ordered following the permanent control activity carried out at S.S.I.F. Estinvest S.A.:

• ASF Decision no. 802/05.08.2024 sanctioning SSIF Estinvest S.A. with a warning;
• Decision no. 803/05.08.2024 sanctioning Mrs. Stănciulescu Florentina Stănciulescu as ML/TF compliance officer of S.S.I.F. Estinvest S.A. with a fine in the amount of RON 10,000.