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Showing posts with the label EAHCISS

Compensation from broker for Russian CFD (contract for difference)

The UK Financial Ombudsman has ordered Interactive Brokers (IB) to compensate an investor that invested in a Russian CFD (contract for difference). In this case the CFD was for 10.000 Sberbank ordinary shares. Interactive Brokers refused to close the position because they could not trade the underlying Sberbank shares Interactive Brokers had bought to cover the CFD contract. From March 2022 onwards, IB raised the margin required for the position to 100%. By August 2024 the interest alone charged on the position had amounted to around USD $12,000.  The European Securities and Markets Authority (ESMA) introduced a margin close-out rule in 2018 that states that CFD providers have to close positions once the net asset value in the investor's account drops to 50% of the required margin. The Financial Ombudsman ruled that Interactive Brokers was required to stop charging interest and other charges on the CFD position once they had to close the position on the basis of the ESMA 50% margin...
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Registration for general meeting 6th of June 2026

All members should now have received a personal invitation for the EAHCISS general meeting on the 6th of June 2026 by e-mail. We look forward to seeing many of you in person and to discuss experiences and investment ideas during the lunch or the networking drinks. Please don't forget to indicate you interest for the event by completing the registration form. A link to the registration form can be found in the e-mail. Please feel free to reach out via contact@eahciss.org if you have any questions.
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EAHCISS will meet with MEP before the St. Petersburg International Economic Forum

EAHCISS will meet a Member of the European Parliament (MEP) that will visit the St. Petersburg International Economic Forum and will meet with members of the Duma during the event. The goal of the meeting in Brussels is to discuss the challenges that European investors in Russia are facing. Unfortunately, EAHCISS is not able to send a representative to the Forum itself, but is looking forward to provide input via the meeting with the MEP in Brussels.
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Lobby success: exception from EU transaction ban on Sberbank, VTB and other banks for payment of dividends

Last year the EU introduced a transaction ban with several Russian banks, including Sberbank (see article 5h of Regulation (EU) 833/2014). After the transaction ban was imposed EAHCISS established contact with the head of the financial sanctions unit within the European Commission ( https://news.eahciss.org/2025/07/impact-of-eu-sanctions-on-eu-investors.html ). The correspondence spread over many months during which we reiterated and explained our request to add a 'prior contract' exception. In April 2026 this exception was added to the EU sanctions regulation (under paragraph 22 of article 1 of Council Regulation (EU) 2026/506 of 23 April 2026 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine). The shareholder agreement is such prior contract that establishes the legal basis for the payment of dividend payments from an enitity that is subject to the transaction ban.
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EAHCISS Annual General Meeting to take place on 6th of June 2026

The annual general meeting (AGM) of EAHCISS will take place during the afternoon of the 6th of June 2026 in hybrid form. Members of EAHCISS can attend physically at a location located centrally in the Netherlands in person or via video connection. After the physical meeting there will be social drinks with the opportunity to chat with other members and the board. Members of EAHCISS will receive an email with more information and how to register for the AGM over the next two weeks.
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NSD did not extend the period of fee waiving

Shortly after the NSD (the Russian central securities depository) was placed on the sanctions list by the EU, NSD started waiving fees. This was done to allow for certain transactions to continue (such as the conversion of depositary receipts into ordinary shares), without a payment being made to NSD as a sanctioned entity. This fee waiving period lasted until the 31st of December 2025 and has since not (yet?) been extended (see https://www.nsd.ru/en/tariffs/ ). We earlier noted that Russian securities in type C accounts (including the ordinary shares underlying depositary receipts) were transferred back to NSD after NSD had been cut out of the chain of custody for a while after NSD was sanctioned by OFAC (see Decree 840 of the 2nd of October 2024, that wasn't extended).  Unfortunately, this means that the NSD may levy charges again for a transfer of securities out of the account of the depositary banks and foreign nominee holders. Hence one would require an authorisation from comp...
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