Attention, FFC trustors: clarification from the NSSMC regarding the situation with FC Global Capital LLC

The National Securities and Stock Market Commission has suspended the license of Global Capital Financial Company LLC, which managed a Financing Fund for Construction (FFC). The suspension is due to violations of applicable legislation.

In accordance with established legal procedures, following the license suspension, the FFC must be transferred to a new manager. Further details regarding the procedure can be found here.

Actions Taken by the NSSMC

Following the revocation of the license, the NSSMC approached the Association for Financial and Investment Management, as well as financial institutions capable of managing such funds, with a proposal to assume management of the Financing Fund for Construction (FFC). To date, no financial company has agreed to this proposal.

The law stipulates that the fund may be transferred to another institution only with its voluntary consent; therefore, the NSSMC has currently exhausted its administrative mechanisms for the automatic appointment of a new manager.

What investors should do and what rights they have

In such a situation, the law protects investors’ rights through a judicial mechanism. Investors have the right to independently apply to the court to have the Financing Fund for Construction (FFC) transferred to the management of another financial institution.

To do this, investors may independently select a company that holds the appropriate license and agrees to take over the management of the fund.

Information regarding managers holding a valid license to conduct professional activities in capital markets—specifically, asset management for financing construction projects and/or conducting real estate transactions—is available on the NSSMC’s website at the following link.