Translated material
Cleanup continues
The Federal Financial Markets Service revoked the licenses of another 12 companies
The Federal Service for Financial Markets (FSFM) canceled the licenses of professional participants in the securities market of 12 companies. The reason for this decision was the failure to submit financial statements during the year. According to a representative of the Federal Financial Markets Service, all these companies did not conduct any activities. And in the future, the service will continue to revoke licenses from such “dead souls.”The FFMS revoked licenses from the following companies: Optima-Center, Business Center, Ellin-Invest, Arco-Finance, Dealer, Investment Brokerage Company Golden Securities, Investment Brokerage House, Slavfincapital , "Capital Financial Investment House", investment company "Continent", "Global Index" and the Central Stock Company.
“All these companies systematically failed to submit reports on their activities to the service. All of them did not conduct professional activities; in fact, they were “dummies”. Some of these organizations were registered at the same address and had the same contact telephone number and fax number. It was impossible to contact the management of the companies. The Federal Financial Markets Service of Russia is aware of the practice of creating a “dummy” company that meets the minimum licensing requirements. Since all the necessary requirements for the license applicant have been met, from a legal point of view the FSFM cannot refuse to issue a license to such a company. Nevertheless, the service will continue to identify such organizations and, if necessary, cancel their licenses,” Leonid Frumkin, head of the information and monitoring department of the Federal Financial Markets Service, told Vremya Novostei.
This is not the first time that the Federal Financial Markets Service has massively revoked licenses from companies due to their failure to submit financial statements. Back in August last year, the service canceled the licenses of 22 companies, then in early November of another five organizations. Then the basis for the regulator’s decision was not only the failure to submit quarterly reports, but also the change of legal addresses, which the companies did not inform the FSFM about.