Romania’s financial supervisory body withdraws operating license of brokerage company after CEO was arrested
Romania’s Financial Supervisory Authority (ASF) has withdrawn the operating license of FAST Brokers after the company's head was arrested. Last year, the brokerage company won a three-year bid with the Romanian Army. Additionally, FAST Brokers won, as the sole bidder, the life insurance policies for Navy soldiers, valid until October 27, 2025.
To motivate its decision, ASF cited eight irregularities in activity and procedural issues committed during the replacement process of the arrested CEO. It also looked at the company's history and preferred to go directly for the license withdrawal rather than a suspension of activity, according to Profit.ro.
Back in February, journalists reported that the owner of an insurance brokerage firm was under criminal investigation for instigating computer fraud and forgery. The same month, Iulian-Valentin Gheorghiu, one of the associates and the executive manager of FAST Brokers, was placed under arrest, a fact that was confirmed by the company.
After inspecting FAST Brokers, ASF noted eight problems, including a "lack of ensuring continuity in the administration and management of the broker's activities."
In response, the company indicated that actions were taken to recruit and hire a new executive director and staff to support the reorganization of activities in the aftermath of the inspection. The Financial Supervisory Authority was notified of these changes, and all necessary documents for the approval of the executive leadership were submitted, with the company adding that "we await a prompt response to ensure compliance with our company's activities."
However, ASF was dissatisfied with these explanations. “Merely transmitting documents cannot be considered fulfilling the legal obligation, as the proposed persons must meet certain professional and moral probity requirements, considered in the evaluation and subsequent approval process by ASF," the institution argued.
ASF then proceeded with the withdrawal of the license.
FAST Brokers was established in 2002, and its shareholders are Liliana Gheorghiu (57.2%) and Iulian Valentin Gheorghiu (42.8%). The company ended 2023 in the 75th place with a market share of 0.18% (down from 0.19% in 2022).
(Photo source: Inquam Photos | Octav Ganea)
