CySEC Extends Russia-Linked Otkritie Broker Director Ban Implementation by Six Months

The Cyprus Securities and Exchange Commission (CySEC) has announced a further extension to the implementation of its decision regarding Otkritie Broker Ltd, a Cyprus Investment Firm (CIF).

In a statement released today (Wednesday), CySEC revealed that its board has decided to grant an additional six-month extension before the prohibition on Igor Gutinskiy, the sole director of Otkritie Broker Ltd, takes effect. This decision was made during a board meeting held on September 23, 2024.

CySEC Extends Prohibition Period for Russia-Linked Otkritie Broker Director

The original decision, which prohibits Gutinskiy from exercising management duties on the company's Board of Directors for a period of two years, was initially announced on April 12, 2023. The implementation of this prohibition has now been postponed for a second time.

Otkritie Broker Ltd holds the CIF authorization under license number 294/16 since 2016. This company offers services in investment advising, brokerage, and asset management under Open Broker trading brand. Despite being registered in Cyprus, its association with a Russian bank has led to potential controversy, especially considering the ongoing war in Ukraine.

The regulatory action against Otkritie Broker Ltd, stems from concerns about the influence exercised by Otkritie FC Bank, one of the largest commercial banks in Russia in terms of owned assets, on the firm's management.

CySEC Decision for Influence exercised by Otkritie FC Bank to the sound and prudent management of the Otkritie Broker Ltdhttps://t.co/6AUfddyyA1

— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) October 2, 2024

Additionally, Otkritie operated a separate entity in Cyprus known as Otkritie Capital Cyprus. This subsidiary had its license revoked in 2021 following the company's decision to terminate its retail brokerage operations in Cyprus the previous year.

This extended grace period may be intended to allow for a smoother transition in the company's leadership. The Commission stated that it would continue to monitor the situation closely and may provide further updates as necessary.