Clients of sanctioned broker Freedom Finance near losing UAH 800 mln in Ukraine's eurobonds
Clients of Freedom Finance Ukraine, a broker sanctioned in October 2022, who held Ukrainian eurobonds worth about UAH 800 million, are close to losing their investments, according to the leader of the affected investors' group, Maksym Dybenko.
"According to the memorandum's terms, investors may lose nearly half of their assets' value and coupon income, while their securities may be sold at auctions, causing further losses for thousands of individual investors," he told Interfax-Ukraine.
He added that after the restructuring process, the bonds were removed from Freedom Finance Ukraine clients' accounts without explanation by the National Bank.
The initiative group, representing more than 300 clients, blames the National Securities and Stock Market Commission (NSSMC) for the situation.
Dybenko recalled that almost two years after the introduction of sanctions, 12,700 clients remain victims, of which 2,500 invested in military bonds through this broker. He added that 95% are individuals, and the total amount of blocked assets, including corporate bonds and funds in accounts, is UAH 3.5 billion.
Arguing his accusations against the NCSSM, the head of the initiative group pointed out that the commission, in the absence of its own legislative proposals, spoke out against bill No. 11263 "On the protection of the rights of clients of sanctioned professional participants in capital markets" registered in the Rada in May of this year by members of the relevant parliamentary committee.
According to Dybenko, the interim head of Freedom Finance, Oleksandr Bondarchuk, appointed by the regulator in June of this year, has not yet met with the company's clients, in connection with which the initiative group itself will try to meet with him in the office in the near future. The head of the initiative group also criticized the decision of the National Securities and Stock Market Commission to suspend Freedom Finance's license rather than revoke it. In his opinion, in the latter case, clients could have gained access to their assets.
