“These represent losses only for the managers, most of which are due to expenses for acquisitions, marketing and publicity, and operations needed to launch the system,” said Crinu Andanut, President of APAPR and General Manager of Allianz-Tiriac Pensii Private. He stressed that revenue for the 14 Pillar II managed companies, which comes from fund management commissions, is as yet insignificant.
“These accounting losses do not affect the financial and operational solidity of the management companies, which still have a total capital worth RON 400 million, to sustain future activities, in spite of massive investments in 2007 and 2008,” added Andanut.
Some managers will be obliged to reduce share capital with the volume of registered accounting losses, in order to maintain the solvability margin imposed by the law for commercial companies.
