Romania Pvt Pension Regulator Fines Insurer, Pension Fund For Law Violation

Trade Registry data indicate that ING Asigurari de Viata had a share capital of RON45.042 million in February 2008, while ING Fond de Pensii had a share capital of RON232 million in April 2008.

ING Asigurari de Viata breached the provisions of article 86 of Law 204/2006 on voluntary pensions and Decision 21/2008 of the regulator’s Council as regards outsourcing the operations of administrating and investing the pension funds’ assets in compliance with the legal framework of Romania’s private pension system, the private pension regulator said.

Article 86 of Law 204/2006 stipulates the private pension regulator checks whether private pension fund administrators cautiously invest the assets of voluntary pension funds while observing the regulations in the field, such as investing for the benefit of participants and beneficiaries.

The regulator also fined ING Fond de Pensii 0.5% of its share capital for having breached the provisions of article 24 of Law 411/2004 on private pension funds, republished, with subsequent amendments, and of Decision 21/2008 of the regulator’s Council.

Moreover, within 30 days from communicating the decision to sanction the administrator, ING Fond de Pensii must terminate its asset management contract with ING Asset Management B.V. The Netherlands – Bucharest subsidiary for the assets of private pension fund ING Fond de Pensii and take the necessary measures for compliance with the legal provisions and Decision 21/2008 of the regulator’s Council.

The data offered by the regulator indicate that ING Asigurari de Viata and ING Fond de Pensii rank first on the Romanian life insurance market and mandatory private pension market (Pillar II), while on the segment of voluntary pensions (Pillar III), ING Asigurari de Viata ranks third by administrated assets, which neared RON10 million late May.