Ostateczna decyzja ws. Vienna Life TU na Życie SA Vienna Insurance Group

The Polish Financial Supervision Authority (KNF) has issued a press release to inform of a final decision as regards the case of Vienna Life TU na Życie SA Vienna Insurance Group.
To recall, on September 20, 2022, the company was fined PLN 1,250,000 due to violations of Article 276 of the Act of 11 September 2015 on insurance and reinsurance activities for investing customer funds in assets whose risks could not be properly identified, measured, and managed (please see Event ID 17391 in this context). Specifically, the firm invested funds of the
– Skandia/VL Active Allocation of Dividend Companies insurance capital fund – also called the Dividend Invest product,
– Skandia/VL Global Shares insurance capital fund – known as the Multi Saver product, and
– VL Multi Strategia insurance capital fund – also called the Top Service programme.
each of which are investment funds offered to clients – into closed-end fund shares of a particular fund. As the insurer could neither influence the investments of the closed-end fund, nor could it adequately exercise influence over the fund’s diversification policy, Vienna Life TU na Życie SA Vienna Insurance Group was found guilty of violating Article 276 of above noted Act. This named article requires that
– insurance and reinsurance undertaking shall allocate funds in accordance with otherwise stated prudent investor principles and
– shall invest financial resources only in financial assets and instruments whose risk they can properly define, measure, monitor, and manage.
Having been asked by the firm to reconsider the case, the KNF has now decided to uphold the penalty as is.