An association of contributors to the privately managed pension funds publicly complained about uncertainties related to the handling of the investigations related to the frauds unveiled recently at BRD Pensii Private - the pension fund manager part of BRD - SocGen Group.

Thus, an official confirmation on those involved and on the nature of the funds siphoned - from BRD Pensii’s own funds or from contributors’ funds - lack, according to the Association of Pension Fund Participants quoted by Bursa.

The contributors to the mandatory (Pillar II) private pension system in Romania are often assigned randomly to one of the fund managers, who had loose reporting requirements until recently, when the Financial Supervisory Authority (ASF) reacted to some scandals.

At the end of June, the former general manager of BRD Pensii Private came under investigation for embezzling money from the company – some RON 23.5 mln (EUR 4.75 mln). BRD claims that it had notified the authorities about the irregularities at its private pension management division in May and that it had filed a complaint against the company’s former general manager, who was dismissed.

In May 2022, the Financial Supervisory Authority (ASF) fined the former general manager of BRD Pensii, Alina Cecilia Andreescu, RON 100,000 (EUR 20,000) and suspended her authorization for holding this position after a control revealed breaches of corporate governance rules and irregularities in the pension fund manager’s financial reports. The three non-executive members of the company’s Board were also fined and resigned following the sanctions.

Romanian private pension managers will report on a monthly basis

(Photo: Designer491/ Dreamstime)

andrei@romania-insider.com