Will the funds of Freedom Financial Group clients be unblocked? The Securities Commission held a working meeting
14 October 2024 11:24
ЕКСКЛЮЗИВ
Today, a working meeting of the management of the National Securities and Stock Market Commission (NSSMC) at the Verkhovna Rada Committee on Finance, Taxation and Customs Policy was held to discuss the protection of the rights of Freedom Finance Ukraine LLC clients, all because of the problems of blocking the assets of Freedom Finance Ukraine LLC clients, "Komersant Ukrainian" reports.
“The Commission has once again tried to convey the thesis that no decisions of the regulator are higher than the norms of the special Law of Ukraine “On Sanctions”. Therefore, the only way to solve the problem of blocking the assets of Freedom Finance Ukraine LLC clients is to amend the current legislation,” the NSSMC said.
The National Commission stressed that the problem of sanctioned persons providing financial services is much wider than the situation with Freedom Finance Ukraine LLC. And only the adoption of the law can systematically address the problem of the consequences of sanctions on a financial institution.
“For our part, we ask the initiative group of investors to contact the regulator for a more detailed discussion of all issues and fruitful cooperation. In order to really launch an effective mechanism, the Commission will once again send the draft law to MPs for its elaboration and introduction in accordance with the voting procedure in the hall. We call on the members of the Verkhovna Rada of Ukraine to cooperate effectively to resolve this issue. After all, after the adoption of the law, thousands of clients of Freedom Finance Ukraine LLC will finally be able to receive their assets,” the National Commission said.
What happened to Freedom Finance Ukraine
on 19 October 2022, the National Security and Defence Council of Ukraine (NSDC) decided to impose sanctions on Freedom Finance Ukraine. This decision was also approved by the President of Ukraine. Not only this company, but also about 1,400 legal entities, including large industrial companies, pro-Russian media and publishing houses linked to Russia, were subject to the restrictions.
The main reason for imposing sanctions on Freedom Finance is its ties to Russia. The company started its operations in the Russian Federation, and this market was considered the second most important for the holding. The founder of Freedom Finance, Timur Turlov, who was a citizen of Russia before the outbreak of the full-scale war, changed his passport to a Kazakh one.
The authorities have applied a wide range of measures to the sanctioned companies, including: freezing of assets; complete cessation of trading operations; prohibition of capital outflows from Ukraine; suspension of economic and financial obligations; cancellation or suspension of licences and other permits; prohibition of participation in privatisation and lease of state property.
In response to these sanctions, the National Securities and Stock Market Commission (NSSMC) suspended Freedom Finance’s licence. However, this caused problems for the company’s clients, as their funds and securities were blocked.
Author: Alyona Kaplina
