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Romanian SSIF Broker Frowns On Securities Regulator Measures

The decision of Romanian Securities Commission CNVM to temporary suspend the operations of local brokerage company SSIF Broker Cluj-Napoca (BRK.RO) and the company’s shares from trading on the Bucharest Stock Exchange are deemed exaggerated and the reasons grounding the decision are “puerile,” the company’s president Petru Prunea said Friday.
Romanian SSIF Broker Frowns On Securities Regulator Measures
30 ian. 2009, 11:49, English

"We face a delicate situation and we must see how it can be solved. I consider CNVM measures to be exaggerated and the cited reasons are childish. I have never met a case in which a company suffers the consequences of irregularities with one of its branches. I cannot answer for the problems in Deva, and CNVM’s measures are disproportionate. Our clients as well as Broker’s 15,000 stockholders will have to suffer now," Prunea told MEDIAFAX Friday.

Romanian Securities Commission, or CNVM, suspended Thursday, for two weeks, the functioning licenses of local brokerage company SSIF Broker Cluj-Napoca (BRK.RO) as well as the company’s shares from trading on the Bucharest Stock Exchange.

The decisions came into force as of Friday, CNVM said.

CNVM made this decision following SSIF Broker’s decision taken Wednesday to temporarily close its unit in Deva, after an infringement of the capital market law by its staff. Thus, the activity was suspended for 45 days until the investigations are over.

The Deva unit staff is investigated both by the police and by CNVM.

Also, CNVM did not say for how long it suspended SSIF Broker shares from trading on the Bucharest Stock Exchange.

All CNVM decisions can be appealed in a 30-day period.