KNF revokes FinCrea TFI license and slaps PLN 5 mln fine

Financial Supervision Authority KNF revoked investment fund FinCrea TFI operating license and put a PLN 5 million fine for failing to supervise some of its portfolios. “FinCrea TFI failed to supervise the entity entrusted to manage investment portfolios of FIZAN Agricultural Investments, Selective Investments FIZAN, Vivante FIZAN and Polish Forests FIZAN,” KNF said, adding that the company also failed to secure proper investment certificates for the portfolios between June 2016 and June 2017. The decision of the KNF regarding the withdrawal of the permit was immediately enforceable. In the KNF's assessment, lack of supervision caused problems with an insufficient liquidity of these funds and a decline in the value of liquid assets. At end-February 2017, the value of the portfolios was estimated at PLN 474 million, and according to media reports, clients were not able to withdraw their allocated funds. The funds will be now managed by its current depositaries, Raiffeisen Bank Polska, mBank, and PKO BP.