On cancellation of licences of professional participant of securities market

The Bank of Russia took a decision to cancel the licences to carry out broker, dealer and depositary activity and operations to manage securities of the closed joint-stock company ZERIH Regional Development (hereunder, the Company), professional participant of the securities market.

The reason to take this decision was repeated violations within a year of the requirements of the Russian securities law and those in relation to countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, notably:

— the Company failed to comply with the licence requirements and the terms of professional activity in the securities market as regards enabling the licensors to fulfill their duties by resisting the inspections and providing incomplete and inaccurate information;

— the Company failed to comply with the Russian securities law as regards the calculation of own funds of professional participants of the securities market;

— the Company failed to comply with the requirements governing their internal accounting;

— the Company lacked the employees to manage broker and dealer activity as well as the internal control officer;

— the Company failed to comply with the securities management procedure;

— the Company failed to comply with the requirements of the Russian legislation on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism.

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19.09.2014 00.00.00