OREANDA-NEWS. On October 18, 2007 the Federal Antimonopoly Service (FAS Russia) imposed a "turnover" fine upon the "Avanguard - Garant" Insurance Group" CJSC in the amount of 4 058 595.40 Rubles, and fined the Chairman of the Board of Directors of the "Avanguard" Shareholding Commercial Bank OJSC to the amount of 17 000 Rubles - for breaching Article 14.32 of the Code of Administrative Violations of the Russian Federation, reported the press-centre of FAS Russia.

On 20th September 2007, FAS Russia established a fact of breaching Clause 5 part 1 Article 11 of the Federal Law "On Protection of Competition" by the "Avanguard" Shareholding Commercial Bank OJSC and the "Avanguard - Garant" Insurance Group" CJSC.

The law was breached by entering into an agreement that led (could have led) to imposing unfavorable conditions upon the bank borrowers in terms of mandatory insurance of a vehicle, pledged to the bank, by the "Avanguard - Garant" Insurance Group" CJSC. From 24.08.2005 to 10.09.2006 the "Avanguard - Garant" Insurance Group" CJSC concluded vehicle insurance agreements in accordance with the Regulations for Vehicle Insurance. Under the Regulations, events occurred due to violation of the Traffic Code by the insured party (the driver) were not classified as insurance events.

Establishing a fact of breaching Article 11 of the Federal Law "On Protection of Competition" constitute the grounds for imposing administrative charges under Article 14.32 of the Code of Administrative Violations of the Russian Federation.

Reference:
Under Article 14.32 of the Code of Administrative Violations of the Russian Federation (CoAV RF), an economic entity, engaged in signing a competition restricting agreement, forbidden by the antimonopoly legislation of the Russian Federation, or carrying out competition-restrictive concerted actions, forbidden by the antimonopoly legislation of the Russian Federation, is to be punished by imposing administrative fines upon its responsible officials to the amount from 17 000 to 20 000 Rubles or disqualification for the period of up to three years; and upon a legal person - from a hundredth to 15 hundredths of the violator's proceeds from the sales of the goods (works, services) on the market where the violation occurred.