Romania’s financial authority slaps RON 750,000 fine on NN Pensii, cancels authorization of CEO Raluca Tintoiu

The supervisory board of the Financial Supervision Authority (ASF) decided on Thursday to fine NN Pensii, the private pension administrator, RON 750,000 or 1 percent of its share capital, after the company notified its clients of debates regarding the potential nationalization of the second pension pillar.

This was the biggest fine issued in the history of the ASF.

In addition, the ASF decided to withdraw the authorization of the CEO of NN Pensii, Raluca Tintoiu. She has been at the helm of NN’s private pension fund in Romania since September 2013. In addition, Tintoiu has received a RON 100,000 fine.

Meanwhile, PM Sorin Grindeanu said that “those that bring these things in the public space and are sowing distrust will have to pay.”

“We can’t play with rumors. The minister (of finance – e.n.) said on numerous occasions that this was a rumor, something stupid,” said Grindeanu.

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One day earlier, the head of the PSD, Liviu Dragnea, said that the rumors regarding the pension fund were started by Misu Negritoiu, the current president of the ASF. Dragnea said that Negritoiu will soon be fired from the ASF together with the management team.

Meanwhile, NN Pensii said that all it did was to send a notification to its 1.9 million clients.

“Therefore, we distance ourselves from any contextualization in a political note, whatever this may be, of the message sent on April 11 to our clients,” said the NN in a statement of Wednesday.

The current head of ASF was the former head of ING Bank Romania. NN Pensii is an independent insurer, manager of pension funds and investments.

In April 2016, ING completed the divestment of NN Group

The financial regulator also approved the start of a control at BCR Pensii, another administrator of the pensions fund, after Radu Craciun, the CEO of the company, posted on his blog an opinion about the nationalization rumors regarding the second pension pillar.

What was NN’s reaction to the fine?

NN said in a statement that is was waiting for the official decision of the ASF and that it the next period it will say how it will act after receiving the sanction.

“We mention that the measures announced today do not impact in any way the pension fund administered by NN and the savings for pensions of around 1.9 million contributors,” said the company.

The pension manager added that it only aimed to inform its clients about the potential changes on the second pension pillar.