“The Board of the Financial Supervisory Authority (ASF) adopted several decisions last month to impose sanctions on certain entities/persons working in capital markets and insurance, the agency announced on Thursday evening.

Sanctions on the insurance market

Euroins Romania Insurance-Reinsurance:

• company Euroins a fine of 422,600 lei for violation of the provisions of Art. 5 para. (1), clause (2), clause (6) and para. (7) from the norm 38/2015 regarding technical reserves created for insurance activities, the method of their calculation for the purpose of drawing up annual financial statements and a special accounting journal of the assets that cover them, in combination with the provisions of art. 3 paragraph (1) of the same regulation.
• The following measures have been applied to the company: conducting an inventory of cases of losses pending in court due to claims of third parties against the insurer by December 31, 2022, and transferring the inventory situation and the measures taken to the ASF. .
• Tanya Blatnik, as the general director of the company was fined in the amount 86,100 lei for violation of the provisions of Art. 37 par. (7) years b) from Law 237/2015 on authorization and supervision of insurance and reinsurance activities, with subsequent amendments and additions, in combination with the provisions of Art. 5 para. (1) lit. d) point (iv) of Norm 21/2016, as amended, due to the fact that the monthly reports submitted to the ASF regarding the situation in disputes pending before the courts were not ensured to be complete and correct and true.

Societatea Asigurarea Românească Asirom Vienna Insurance Group SA was sanctioned for:

• a written warning for the late creation of a loss reserve for two loss files and failure to update the approved loss reserve based on relevant existing documents for two loss files, which is a violation of the provisions of Art. 5 para. (1) from ASF norm no. 38/2015.
• a written warning for not conducting an analysis of the client’s requirements and needs (DNT) under two insurance policies, thus the Company did not comply with the provisions of Art. 14 para. (1), clause (2) lit. clause (3) from Law No. 236/2018.

Eurolife FFH Life Insurance was fined 19,400 lei for the following facts:

• according to a series of three policies, the company did not comply with the provisions of Art. 12 para. (6) and Art. 13 para. (1) lit. d) from the Law No. 236/2018 on the distribution of insurance with subsequent changes and additions;
• in the case of an insurance policy, he did not comply with the provisions of Art. 12 para. (6) and Art. 13 para. (2) from Law No. 236/2018.

Groupama Asigurari was sanctioned for:

• a fine of 90,500 lei for untimely payment of compensations, which violated the provisions of Art. 21 par. (4) from Law No. 132/2017 on civil liability insurance of vehicles for damage caused to third parties as a result of road accidents involving vehicles and trams, with subsequent amendments and additions;
• a fine of 10,000 lei because it did not create systems and structures to ensure the propriety and compliance of the data transmitted to the ASF, thus violating the provisions of Art. 37 par. (8) from Law No. 237/2015 on authorization and supervision of insurance and reinsurance activities, as amended.

Transilvania Broker de Asigurare was fined 7,520 lei for the following actions:

• violation of the provisions of Art. 4 para. (5) years b) and Art. 11 paragraph (1) of the Regulation of the Financial Supervision Authority No. 19/2018 on the distribution of insurance (valid until 31.08.2021), the fact is also supported by the current legislation, according to the provisions of Art. 4 para. (5) years b) clause (i) of the Financial Supervision Authority Rules No. 22/2021 regarding the distribution of insurance related to the provisions of Art. 8 para. (5) from Law No. 236/2018 on the distribution of insurance, as amended, for failure to maintain, respectively, failure to update the Journal of Broker Assistants of Legal Entities, the Register of Secondary Intermediaries (RIS);
• violation of the provisions of Art. 4 para. (14) of the Rules of the Financial Supervision Authority No. 19/2018 on the distribution of insurance (valid until 31.08.2021), the fact is also supported by the current legislation, according to the provisions of Art. 4 para. (12) of the Rules of the Financial Supervision Authority No. 22/2021 regarding the distribution of insurance related to the provisions of Art. 35 par. (8) years d) from Law No. 236/2018 on the distribution of insurance, as amended and supplemented, for not being removed from the Register of Secondary Intermediaries (RPI) within the legal term.

Insurance broker Domas was fined 5,200 lei for the following actions:

• violation of the provisions of Art. 10 para. (8) from Law No. 236/2018 on the distribution of insurance, as amended and supplemented, for the absence of a written policy that provides for the verification of requirements regarding the moral integrity of own employees and secondary intermediaries during cooperation with them;
• violation of the provisions of Art. 11 paragraph (1) of ASF regulation no. 19/2018 regarding the distribution of insurance, the fact is also supported by the current legislation, according to the provisions of Art. 4 para. (5) years b) from ASF standard no. 22/2021 regarding the distribution of insurance, in combination with the provisions of Art. 8 para. (5) from Law No. 236/2018 on the distribution of insurance, as amended, for failure to maintain or update the Register of Secondary Intermediaries (RIP).

Sanctions on the capital market

SAI Muntenia Invest – As a result of using the results of the periodic control in SAI Muntenia Invest SA and in the administered institutions, SIF Muntenia SA and FDI Plus Invest, the following sanctions/measures were imposed:

• application of warning to SAI Muntenia Invest SA;
• imposition of sanctions with warning Mr. Florika Trandafir, President of the Board of Directors of SAI Muntenia Invest SA 03/12/2020.

At the same time, the company is entrusted with a plan of measures to eliminate identified deficiencies/situations.

The main identified shortcomings related to some aspects regarding the procedural/organizational framework and management of operational risks generated by the IT systems used.

SSIF Otpimus Fintech: Given that SSIF Otpimus Fintech SA continues to not meet the conditions that were the basis for issuing authorization no. 167/12.12.2019, subsequently violating the provisions of Art. 76 par. (1) of Law No. 126/2018 on Financial Instruments Markets, as subsequently amended and supplemented, by Decision No. 1448/20.10.2022, the ASF imposed a warning and suspension of SSIF Optimus Fintech SA’s authorization to take the necessary steps to revoke the authorization for activities upon request, but for no more than 180 days.

SAI broker: As a result of the supervisory measures carried out in the case of FIAIP Smart Money, it was established that the provisions of Art. 12 para. (1) lit. b) from Law No. 74/2015 in combination with the provisions of Art. 18 of EU Regulation No. 231/2013, as the directors of the company did not act diligently and prudently so that the investment decisions taken on behalf of the FIA ​​were carried out in accordance with the objectives of the fund and its investment strategy, thus not protecting the interests of investors by making the acquisition and active display of shares issued by the New Business company Dimensions SA

Actions: A fine of 3,600 lei for Mr. Adrian Danciu, as CEO of SAI Broker SA; Punishment with a fine of 3,300 lei for Ms. Laura Nicoleta Kovaciu, as Deputy CEO of SAI Broker SA