“The Company was penalized for the lack of ongoing performance oversight by a third entity for the portfolio management activities of ARIONN Fundusz Inwestycyjny Zamknięty (currently: ARIONN FIZ in liquidation), for managing ARIONN FIZ in an unreliable and unprofessional manner and for failing to ensure due diligence, and oversight of the management of the portfolio entity. The third investment of ARIONN FIZ, in violation of the interests of the participants in the fund, in the period from January 1, 2018 to October 27, 2019. ” – explained in the announcement of the Polish Financial Supervisory Authority.
The association did not carry out any oversight activities
The Polish Financial Supervisory Authority noted that during the management of the ARIONN FIZ investment portfolio by the company entrusted to the management company, there were irregularities in the management’s continuous supervision of the management company.
“The association did not verify the documentation of the fund’s transactions, did not analyze or accept the investment decisions made by the manager. At the same time, the investment decisions examined during the proceedings did not constitute a sufficient justification for the fund’s investments. About these decisions. ”- emphasized the Polish Financial Supervisory Authority.
According to the authority, the association did not carry out analytical and control activities related to the investments of the fund’s portfolio companies. It did not analyze the activities of these companies or their individual transactions, as well as the methods and manner of their financing or their financial situation.
“The association decided that supervision in the field of investment portfolio management of the fund does not cover activities that are carried out with special purpose vehicles” – added the Polish Financial Supervisory Authority.
Lack of effective supervision over the manager
The Polish Financial Supervisory Authority noted that in the period covered by the commission’s decision, the association conducted only one inspection in connection with the performance of the duties of the director and inspected a small part of it.
The ministry informed that “this oversight is related, at a minimum, to the fund’s investment activities.”
“The identified irregularities indicate the ineffectiveness of the model of supervision of activities assigned to the manager adopted by the company. The frequency and scope of the controls were not sufficient to ensure effective supervision of the manager. It did not provide the community with current and practical information. Comprehensive information on how to perform the tasks assigned to it”- she stressed Polish Financial Supervisory Authority.
According to the Polish Financial Supervisory Authority, the lack of complete and up-to-date knowledge on the part of society means that an adequate level of protection of investor interests has not been ensured.
“This may have translated into a failure to take appropriate measures in a timely manner to ensure that their interests are protected,” she added.
The Polish Financial Supervisory Authority added that the maximum fine in this case is 5 million PLN.
The activities entrusted to a particular community must be supervised on an ongoing basis
🔸 #KNF Imposition of a fine on AgioFunds TFI SA in the amount of PLN 1,500,000 for specific violations indicating the ineffectiveness of the approved form for supervision of activities entrusted to the ARIONN FIZ Investment Portfolio Manager: https://t.co/QMy26WTSTF pic.twitter.com/TH69aPq4rt
– KNF office (uknf) 4 July 2022
Supervision must be done on an ongoing basis
In the announcement, the authority confirmed that the investment fund company’s commitment is to continuously supervise the activities entrusted to the manager. For the duration of the management of the investment portfolio of the Fund by another entity, the investment fund company remains responsible for the proper performance of its mandated tasks, including its performance in accordance with the regulations and the interests of the participants in the fund.
“Supervision of the activities entrusted by a particular community must be carried out on an ongoing basis and must be comprehensive. It must cover all entrusted activities in a manner adapted to the business profile and scope” – emphasized the Polish Financial Supervisory Authority.
PR24.pl, PAP, DoS
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