PROTECTION OF INVESTORS «RIGHTS: NSSMC SUSPENDED THE LICENSE OF THE FINANCIAL COMPANY «ZHYTLO-KAPITAL»

NSSMC (National Securities and Stock Market Commission) considered cases of violations in the capital markets and organized commodity markets in respect of LLC «Financial Company «Zhytlo-Kapital».

Thus, the authorized persons of the NSSMC issued a resolution on the imposition of sanctions against the company «FC «Zhytlo-Kapital» in the form of suspension of the license for the conduct of property management activities to finance construction projects and/or real estate transactions for the period until 12.03.2024.

The NSSMC found that the company «Zhytlo-Kapital» systematically violated the legal rights of its investors:

• the manager used the funds of the CFF (construction financing fund) not for the intended purpose,
• did not inform investors about the postponement of the commissioning of the construction facility,
• the opening of financing of construction projects from 2015 to the present took place without all the necessary documents, in particular those confirming the right to build a housing construction project on the land plot.

The NSSMC received numerous complaints from the principals regarding the manager of the CFF (construction financing fund) of the Goloseevskaya Dolina residential complex (the previous name was Parkovaya Dolina residential complex) − FC Zhytlo-Kapital LLC regarding the violation by the specified manager of their rights and legitimate interests in the financial services market.

The NSSMC also established that the company LLC FC «Zhytlo-Kapital» in violation of the requirements of the law, kept the operational reserves of the CFF in accounts opened in the non-bank financial institution LLC «People’s Aid Fund». Now we are talking about funds in the amount of about 3.7 billion UAH. It should be noted that the NBU 26.03.2021 revoked the license of the People’s Aid Fund and 23.04.2021 excluded the company from the State Register of Financial Institutions.

It is important that the financial company is not exempt from the duties that are provided for by previously concluded property management contracts. Since the suspension of the license and for the specified period, the creation of new CFFs is prohibited, an increase in the number of construction objects in already created funds and the conclusion of new contracts with property management installers is prohibited.