The Cyprus
Securities and Exchange Commission (CySEC) has announced a further extension to
the implementation of its decision regarding Otkritie Broker Ltd, a Cyprus
Investment Firm (CIF).
In a
statement released today (Wednesday), CySEC revealed that its board has decided
to grant an additional six-month extension before the prohibition on Igor
Gutinskiy, the sole director of Otkritie Broker Ltd, takes effect. This
decision was made during a board meeting held on September 23, 2024.
CySEC Extends Prohibition
Period for Russia-Linked Otkritie Broker Director
The
original decision, which prohibits Gutinskiy from exercising management duties
on the company’s Board of Directors for a period of two years, was
initially announced on April 12, 2023. The implementation of this
prohibition has now been postponed for a second time.
Otkritie
Broker Ltd holds the CIF authorization under license
number 294/16 since 2016. This company offers services in investment
advising, brokerage, and asset management under Open Broker trading brand.
Despite being registered in Cyprus, its association with a Russian bank has led
to potential controversy, especially considering the ongoing war in Ukraine.
The
regulatory action against Otkritie Broker Ltd, stems from concerns about the
influence exercised by Otkritie FC Bank, one of the largest commercial banks in
Russia in terms of owned assets, on the firm’s management.
Additionally,
Otkritie operated a separate entity in Cyprus known as Otkritie
Capital Cyprus. This subsidiary had its license
revoked in 2021 following the company’s decision to terminate its retail
brokerage operations in Cyprus the previous year.
This extended grace period may be intended to allow for a smoother transition in the company’s leadership. The Commission stated that it would continue to monitor the situation closely and may provide further updates as
necessary.
The Cyprus
Securities and Exchange Commission (CySEC) has announced a further extension to
the implementation of its decision regarding Otkritie Broker Ltd, a Cyprus
Investment Firm (CIF).
In a
statement released today (Wednesday), CySEC revealed that its board has decided
to grant an additional six-month extension before the prohibition on Igor
Gutinskiy, the sole director of Otkritie Broker Ltd, takes effect. This
decision was made during a board meeting held on September 23, 2024.
CySEC Extends Prohibition
Period for Russia-Linked Otkritie Broker Director
The
original decision, which prohibits Gutinskiy from exercising management duties
on the company’s Board of Directors for a period of two years, was
initially announced on April 12, 2023. The implementation of this
prohibition has now been postponed for a second time.
Otkritie
Broker Ltd holds the CIF authorization under license
number 294/16 since 2016. This company offers services in investment
advising, brokerage, and asset management under Open Broker trading brand.
Despite being registered in Cyprus, its association with a Russian bank has led
to potential controversy, especially considering the ongoing war in Ukraine.
The
regulatory action against Otkritie Broker Ltd, stems from concerns about the
influence exercised by Otkritie FC Bank, one of the largest commercial banks in
Russia in terms of owned assets, on the firm’s management.
Additionally,
Otkritie operated a separate entity in Cyprus known as Otkritie
Capital Cyprus. This subsidiary had its license
revoked in 2021 following the company’s decision to terminate its retail
brokerage operations in Cyprus the previous year.
This extended grace period may be intended to allow for a smoother transition in the company’s leadership. The Commission stated that it would continue to monitor the situation closely and may provide further updates as
necessary.
This post is originally published on FINANCEMAGNATES.
