Investors ask investigation of transactions with structured products at BVB

The Association of Market Investors request CNVM to investigate transactions with certain structured products issued by Erste when the former Administration Board of BVB invoked a series of problems when Valentin Ionescu was demoted from the position of general manager.

“Considering the allegations against the executive management of the Stock Exchange that it had not supervised the activity of BCR as cash supplier for structured products issued by Erste and that several investors had announced CNVM about those problems we request CNVM to begin an investigation about the possibility of infringing the law in force and the publication of results in the CNVM bulletin,” a press release of AIPC shows.

Investor representatives mention that the reasons invoked by the former Amdinistration Board of the Stock Exchange for the revocation of Valentin Ionescu from the position of general manager include “not supervising the people involved in operations with some structured products,” Mediafax writes.
Valentin Ionescu was revoked as CEO of BVB on 17 November and on 9 January the Administration Board of BVB was also changed. Only the former chairman of the Board, Stere Farmache and Octavian Molnar remained from the old Board.

The investors’ dissatisfaction toward the activity of BCR as supplier of cash for certain structured products issued by Erste was determined by the fact that sometimes the bank did not maintain quotations in the market for technical reasons and in some cases they announced the problems too late.

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