English

Choose language

Back

  • Deutsch

  • English

  • Español

  • Français

  • Polski

  • Русский

  • Українська


English
  • Home
  • FAQ
  • What will happen if Freedom Finance Cyprus goes bankrupt and/or goes into liquidation?

What will happen if Freedom Finance Cyprus goes bankrupt and/or goes into liquidation?

This is very much unlikely. Freedom Finance Cyprus id a subsidiary of Freedom Holding Corp. ($FRHC), which is listed in the NASDAQ. We are also an EU-regulated broker with a registered agent in Germany. Thus, Freedom Finance Cyprus is regulated by three authorities: Cyprus Securities and Exchange Commission (CySEC), Germany's Federal Financial Supervisory Authority (BaFin), and the United States Securities and Exchange Commission (SEC). With that grade of regulation, it is inconceivable that our company commits any infringements that could potentially lead to bankruptcy.

However, if we still theoretically admit this had occurred, you can rely upon a specific policy maintained by the EU Law regarding the client funds in case of bankruptcy. As per 87(I)/2017 and DI87-07, every EU-based broker must be a member of the Investor Compensation Fund. In case a company goes bankrupt or gets liquidated, its clients have a right to request compensation from the Fund, every client's assets are insured for €20,000. Apart from that, when a company goes bankrupt, the regulators will assign an asset manager, after which the clients will be able to request to transfer their assets to other accounts.

For more information, please refer to our Broker Service Policy, which is published on our website.