The Central Bank of Russia has annulled the license of investment company Prime Broker. In particular, the regulator has annulled the broker, dealer, securities management, and depositor licenses of the company.
The regulator explains that the company has violated Russia’s securities laws numerous time over the course of the year. More specifically, Prime Broker has failed to comply with the central bank’s orders and instructions. It has also failed to meet accounting requirements. In addition, the company has failed to meet licensing and capital requirements. Furthermore, Prime Broker did not comply with the requirements for information disclosure.
Also, the Central Bank has found that Prime Broker has not met the requirements of anti-money laundering laws. Finally, suspicious operations involving client money and securities have been detected.
The license of Prime Broker becomes invalid with effect from May 12, 2021. The company has to return all funds to its clients not later than May 11, 2021.
Let’s note that, the website of the company shows that it is offering Forex investments too. For this, however, it needs an FX dealer license, issued by the Russian central bank. The company does not have such a document.
At present, the list of licensed FX dealers in Russia includes the names of three companies only: FINAM-FOREX, Alfa-Forex, and VTB Forex. As FX News Group has reported, back in December 2020, the Central Bank of Russia announced the annulment of the Forex dealer license of PSB-Forex. The reason for the regulatory decision is a request submitted by the broker itself.