BECAUSE IT DID NOT HAVE THE MONEY NEEDED FOR THE SETTLEMENT OF SOME TRADES The ASF has suspended the authorization of "Harinvest" for three months

The Financial Overnight Authority has suspended the operating license of "Harinvest" for 90 days, because the brokerage firm did not have sufficient funds to settle some transactions, and the Central Depository had to intervene through the Guarantee Fund.

Ludwik Sobolewski, the CEO of the BSE, told us that the BSE had suspended the brokerage firm, for three months, one week ago.

Harinvest was also fined 6,770 lei by the ASF, the equivalent of 0.1% of its turnover in 2012.

According to the ASF, Harinvest did not fulfill its payment obligation pertaining to the settlement of November 15th, 2013 from the Central Depository, and did not act with professional diligence to protect the interests of investors and the integrity of the market.

"BURSA" was the first to report, on November 21st, that the Central Depository was forced to use 500,000 Euros, half of the Guarantee Fund which it is managing, after SSIF "Harinvest" did not have the money needed for settling some structured products issued by Erste Group.

According to the procedures to be used in situations like this, the brokerage firm initiated sell-outs from its portfolio.

At the time, Ludwik Sobolewski, the CEO of the BSE was announcing decisive action should the settlement fail.

"I am sorry, but the stock market has a commandment: you need to have the money to pay for the shares. Be they yours or borrowed, you must have the money", he told us.

"Harinvest" brokered transactions amounting to 298.45 million lei, until the end of October, ranking 12th in the brokerage chart, with a market share of 1.68%.

However, the structured products trades brokered represent 86% of the firm's turnover.

"Harinvest" has a market share of 26.60% of the structured products segment, being ranked second in the chart of the brokerage firms, after BCR.