ING fined with EUR 0.38 million for outsourcing investments of pension funds
Companies ING Asigurari de Viata and ING Fond de Pensii have been fined yesterday by the supervisory body, CSSPP, with RON 1.385 million (EUR 380,000), namely 0.5% of the cumulated share capital of the two companies, for outsourcing the asset management operations for their three pension funds (two voluntary and one mandatory). It is the first time ever given by CSSPP, making it the most severe sanction on private pensions market so far.
The two companies have transferred the management of the private pension funds investments through an outsourcing contract, a practice previously prohibited by CSSPP through a decision of the Commission Council. Outsourcing was made towards ING Asset Management BV The Netherlands - Bucharest Branch, namely the investment management specialized company of ING Group. Meanwhile, CSSPP has called the companies to cease the two outsourcing contracts with ING AM within 30 days. ING officials could not be contacted at the moment to comment the CSSPP decision.
Several days ago, Mircea OANCEA, President of CSSPP, said exclusively for www.pensiileprivate.ro the supervisory authority will not allow any company to outsource the management of the pension funds assets and it will sanction any outsourcing contract. At the same time, however, the Commission will allow the consultancy contracts and transfer of know-how in asset management, OANCEA noted.
05.07.2008
