The CNB fines EF CZ

The Czech National Bank imposed a fine of CZK 500,000 and remedial measures on EF CZ (formerly EUROFINANCIAL), which acts as an insurance agent and insurance broker.

The CNB’s decision in administrative proceedings conducted against the company EF CZ, s.r.o., having its registered office at Křemencova 18, 110 00 Prague 1, took effect on 3 August 2009. This is the first final decision of the CNB imposing sanctions for the violation of the Act on Insurance Intermediaries and Independent Loss Adjusters.

The CNB imposed sanctions on the company because it hired persons without the appropriate registration to carry on its insurance intermediation activities, collected entrance fees from them and paid them commissions for recruiting new participants to the scheme. Information about the fine and remedial measures will be recorded in the register of insurance intermediaries and independent loss adjusters in accordance with the relevant legal rules.

Marek Petruš, CNB Spokesman