Russian broker expands into Kazakhstan’s market

Vladislav Kochetkov, chair of the Russian brokerage firm Finam, has announced plans to enter the Kazakhstani market, according to Russian Frank Media. It is worth noting that Finam’s website was blocked for a long time in Kazakhstan over suspicions of the company’s involvement in organizing a Ponzi scheme.

«We have resumed our efforts to enter the Kazakhstani market. We have recently visited the country, held several negotiations and concluded that we’re interested in expanding there. As a result, we are resuming the talks on acquiring a Kazakhstani broker. It’s quicker than establishing a new entity, although starting a new one is still a possibility. However, we are most likely to pursue the acquisition option,» Kochetkov said.

According to him, the deal could be announced as early as the first quarter of 2025. Finam is currently in talks with a potential partner, though their name has not been disclosed. The deal structuring is yet to be completed by the parties. Furthermore, the Russian broker is undergoing a due diligence process.

Frank Media, citing a source familiar with the matter, reported that two brokers are listed for sale in Kazakhstan, and Finam is negotiating to acquire one of them. Meanwhile, the company is evaluating the option of establishing a new entity in Kazakhstan from scratch, considering the cost to be comparable to acquiring an already operational one.

In December 2023, Finam announced its intention to expand into the markets of Kazakhstan and Belarus. At that time, the broker considered two options: establishing a local company or directly connecting to the auctions on the local exchanges. Kochetkov explained that Finam’s primary aim was to serve Russian traders who had faced challenges due to sanctions imposed by the EU and the U.S. These sanctions had also affected exchange transactions, as the accounts of the Russian National Settlement Depository were blocked in the Euroclear and Clearstream depositories, leading to the freezing of Russian investors’ international assets.

In July 2022, Finam’s website was blocked in Kazakhstan by the decision of Kazakhstan’s Financial Monitoring Agency (FMA). In response to an inquiry from Kursiv.media, the FMA explained that evidence of Ponzi schemes had been found during an investigation of the Finam.ru website. For instance, the site advertised high and quick profits with low investment requirements. According to the FMA, Finam promised monthly payouts and 20% bonuses to those who actively attract new clients for the company.

The broker’s website is currently accessible in Kazakhstan. However, the details regarding when and why it was unblocked remain unclear. Kursiv.media has submitted an inquiry to the FMA asking to comment on this matter.

Finam was established in 1994 by Russian entrepreneur Viktor Remsha and initially operated under the Finans-Analyst brand name. The company adopted its current name in 2002. Remsha exited the company’s capital in 2021. There is no publicly available information on the current shareholders of the broker.