FC “Toloka”: the proceedings continue, the license suspended

The NSSMC (National Securities and Stock Market Commission) again suspended the license of LLC “Financial Company “Toloka” for conducting professional activities in the capital markets – until June 16, 2022. This Resolution was taken by the Regulator’s members at a meeting on December 7, 2021.

“Unfortunately, the infamous FC “Toloka” case has not subside: the Commission continues to receive complaints. The Regulator, in turn, has also initiated a number of capital markets violations cases against this financial company. Currently, the Commission does not have an objective opportunity to investigate the issues raised in the requests of trustees, so decided to extend the period of suspension of the company’s license,” Arsen Ilin, the Commissioner of the NSSMC says.

It should be noted that on June 17 this year, the Regulator decided to suspend the license of “Toloka” for property management activities to finance construction objects and/or carry out real estate transactions until December 16, 2021. Since June, the Regulator has not been able to inspect the company: it did not provide access to the premises, did not provide documents. At the same time, complaints continued to be received.

“We constantly take care of the protection of investors’ rights and try to strengthen it. Unfortunately, we are limited at the legislative level, so we are out for regulatory changes and increasing the institutional capacity of the Regulator to prevent such difficult and painful cases from appearing in the future. We are currently restricting the company’s activity, we continue to study the issues, and pay attention: the company, whose license has been suspended is not exempted from performing previously formed obligations” Mr. Ilin adds.