Expert board of appeals suspends securities commission's decision to revoke PFTS license
The expert board of appeals for licensing at the State Regulatory Service of Ukraine has suspended the decision of the National Commission for Securities and the Stock Market of Ukraine on annulling the license for professional activity on the stock market owned by public joint-stock company PFTS Stock Exchange (Kyiv).
"The decision of the commission on annulling the PFTS's license has been suspended until the State Regulatory Service makes a decision after hearing the appeal of the license holder," the exchange reported on its website.
PFTS said that the appeal will be considered in November. The date of the hearing has not yet been approved.
"At the present, the exchange is operating as usual and plans to continue its operations and fulfill its liabilities to contractors under signed agreements until the board makes the decision," PFTS said.
As reported, the securities commission decided to annul the license of PFTS on October 6, 2015
"After receiving information about the plans of Favorit stock company and Investment Capital Ukraine (ICU, both based in Kyiv) to acquire shares in PFTS, which belong to Moscow Exchange (Russia), the national commission held a series of meetings with the PFTS management and potential buyers and received the requested documents. Nevertheless, ICU failed to provide the commission with the prior consent of Moscow Exchange, while Favorit company did not provide information about the availability of funds to purchase PFTS shares and information on the future final beneficiaries of the exchange. Accordingly, the commission, without sufficient evidence of the possibility of compliance with legislation in the field of licensing by PFTS Stock Exchange, has decided to revoke the exchange's license," the commission said.
The decision of the commission was to take effect on November 6.
Shareholders in PFTS stock exchange decided to challenge the decision of the National Commission for Securities and the Stock Market of Ukraine in the administrative court and the expert appeals council for licensing at the State Regulatory Service.
A hearing on the exchange's claim has not been held. The court ruled against the petition of the exchange to suspend the decision of the regulator.