The SEC has issued a warning to Timur Turlov, CEO of Freedom Holding
The U.S. Securities and Exchange Commission (SEC) has sent a Wells Notice to Timur Turlov, CEO of Freedom Holding. This is stated in the company’s annual financial report, which also mentions potential violations of regulatory requirements.
The Wells notice is an official warning related to an SEC investigation and implies the possibility of enforcement actions by the regulator. The company has the opportunity to present its defense before the SEC decides on further action—whether to close the investigation or continue it.
Turlov received the Wells Notice on March 11. The SEC has been investigating the activities of Freedom Holding and some of its executives since 2021. The investigation focused on settlement of transactions and the company’s relationships with certain institutional investors—market makers of over-the-counter brokerage “subsidiaries” outside the U.S. The SEC also examined disclosure and accounting practices related to internalized transactions, i.e., over-the-counter trades between clients within a clearing firm.
Freedom Holding and Turlov challenged the SEC’s “preliminary conclusion.” The U.S. regulator has effectively concluded its investigation, according to Oninvest.
As a reminder, Timur Turlov faced a wave of negative publicity after moving to Kazakhstan.
