€140,000 fine imposed on UAB INVL Asset Management
By resolution of the Board of the Bank of Lithuania, UAB INVL Asset Management was imposed a €140,000 fine for two legislative breaches identified during its inspection.
UAB INVL Asset Management has breached the provisions of the Republic of Lithuania Law on Collective Investment Undertakings and the Rules on the Organisation and Conduct of Business of Management Companies, by transferring part of the management fee to a participant of one of its investment funds, thus violating the interests of other fund participants. The management fee must only be reimbursed to all participants of collective investment funds or neither of them, yet in this case, the company has provided only one participant with such preferential conditions.
The Company has also failed to meet the legal requirements and approve measures aimed at assessing whether companies are effectively implementing management functions they have been entrusted with.
Furthermore, UAB INVL Asset Management was warned of other violations related to the management of collective investment undertakings and portfolios of financial instruments managed on behalf of its clients.
The mentioned violations were identified during the planned targeted inspection of this management company carried out by the Bank of Lithuania. The inspection was conducted with the aim to assess its financial and capital position, risk management, compliance with the legal acts regulating the management of collective investment undertakings and provision of investment services. The inspection and the sanctions applied are not in any way related to the company’s pension accumulation activities.
UAB INVL Asset Management is obligated to eliminate any legislative infringements and operational deficiencies identified during the inspection by no later than 1 July 2019.