SIF Moldova : Current report - Status of the compliance with the new Corporate Governance Code of BSE

RAPORT DE ACTIVITATE

Current Report according to: Law 297/2004, CNVM Regulation 1/2006 Report date: January 12, 2016

Regulated market on which the issued securities are traded: Bucharest Stock Exchange, Premium Category

To: BUCHAREST STOCK EXCHANGE FINANCIAL SUPERVISORY AUTHORITY Financial Instruments and Investments Sector

1. Decisions adopted by the Board on preparing the EGMS of January 13/14, 2016 The Board of Directors has approved the Report Control of the departments "Internal Audit", "Internal Control" and "Risk Management" for the period Oct 1 - Dec 31, 2015, with regards to fulfillment of compliance obligations on the investments made by SIF Moldova in its subsidiaries and the management of the operational risks associated to the investments in the financial instruments of the issuers which are close to the legal and prudential limits (completes the reports made from 2013 onwards on these issues).

   In the EGMS of January 13/14, 2016 (item 3 on the agenda) it will be presented the reports prepared on these issues during 2013 - Dec 31, 2015 period; there were no violations of the legal provisions, statutory provisions, internal regulations and GMS resolutions which are incident.

2. Status of the compliance with the new Corporate Governance Code of BSE

   SIF Moldova respects 40 BSE recommendations out of 41, as of January 12, 2016 (Annex - Compliance Statement).

   Noncompliance/explanations:

   • the number of members of the Audit Committee is two, not three;

   • the Board has assumed the number of members of the Advisory Committees for 2015/2016 driven by the investment priorities undertaken and approved by the GMS of April 2, 2015 and the preparation of SIF Moldova regulations from the perspective of Law 74/2015 (Alternative Investment Fund Administration)

3. Advisory Committees of the Board of Directors

   • Investment Policies and Strategies Committee: consists of four non-executive members;

     President - Ciorcila Horia (current report of March 12, 2015 and September 7, 2015)

   • Nomination Committee: consists of two non-executive members; President - Radu Octavian (current report of March 12, 2015)

   • Audit Committee - consists of two non-executive members; President - Albu Gheorghe (Board decision of January 12, 2016)

     The Board of Directors has approved the maintaining of the current level of remuneration of the advisory committees members which was established by the Board decision no. 1 of September 7, 2015 (current report of Sept 7, 2015) for the period of the financial year 2016, namely a monthly fund of 105257 RON. The distribution of the monthly fund will be made based on the number of committees operated by each director.

4. Financial communication calendar for 2016

The Board of Directors has approved the financial communication calendar for 2016 (Annex).

Costel Ceocea, PhD President and CEO