Serbian Regulator Revokes CapitalOne’s Broker-Dealer License

The Securities Commission of the Republic of Serbia has permanently revoked the license of the broker-dealer company CapitalOne a.d. Beograd, citing “serious and systematic” irregularities.

Announced on Monday, the Serbian regulator revealed that the broker-dealer failed to accurately file its mandatory reports, along with some discrepancies in human resource requirements. The regulator also alleged that the company had lapses in safely maintaining its client assets.

“The Securities Commission has established that the broker-dealer company CapitalOne a.d. Beograd failed to meet the requirements considering the timely and accurate reporting to the Commission, that it failed to meet the human resource requirements for a longer period of time, that it failed to keep and use its client assets as stipulated by the law and failed to act in accordance with the Commission's decisions,” the public announcement noted.

All the client assets of CapitalOne have already been transferred to another broker-dealer company, Eurofineks.

A company with a history of irregularities and non-Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term

The permanent ban on CapitalOne’s license might be fueled by the broker-dealer history of non-compliance with the necessary regulations of Serbia.

The Serbian watchdog also blocked the cash and securities accounts of the company’s broker-dealer’s license for three months last year, along with the suspension of its license for six months.

“In its supervision procedure the Commission had established illegalities and on 10 May 2019 the Commission suspended all the activities of CapitalOne instructing it to eliminate the determined illegalities,” the regulator then wrote.

Last October, the regulator also suspended the broker-dealer license of Sinteza Invest Group for “irregularities and illegalities” in its activities.