LSC News

LTL 2,700 fine upon the former manager of the management company

18/06/2009 | LSC desicions

The fine was imposed for the failure by UAB JT investicijų valdymas managed by Evaldas Jurevičius in relation to investing funds of three investment funds managed thereby into another investment fund JT Baltijos fondų fondas I under its management to fulfil its duty to act in the best interests of fund holders. The fund was addressing the difficulties of the fund JT Baltijos fondų fondas I at the expense of the first three investment funds. Such actions of the management company constituted an infringement of the Law on Collective Investment Undertakings to seek to avoid any conflicts of interests and act honestly and fairly in respect of its clients.

 

For a certain period of time net assets value of JT Baltijos fondų fondas I was failing to reach the threshold established in laws of LTL 1 m, and accounted for only LTL 596,000, therefore having failed to attract any additional investment the fund would have been closed. Having invested funds of the three other investment funds (total LTL 500,000) the fund could meet the requirements established by laws and continue its operations. The management did not endeavour to avoid any imminent conflicts of interest, furthermore, in view of such failed to treat fund participants fairly by having repeatedly charged the asset management fee. As the LSC required the issue of the double fee charge was properly resolved and fund participants did not incur any additional costs.

 

The responsibility for the actions of UAB JT investicijų valdymas whereby the management company infringed the requirements of the relevant legal acts lies not only the legal person itself but also with its manager. When imposing the sanction upon Evaldas Jurevičius in accordance with the Code on Violations of Administrative Law the LSC took duly into account the extenuating circumstances – Evaldas Jurevičius acknowledged and regretted to have committed the infringement.  

 

Note: on 19 March 2009, the operating licence of the management company UAB JT investicijų valdymas was revoked as the company was reorganised by merging it with UAB SNORAS Asset Management.