Statement of the National Bank of Georgia
One of the main functions of the National Bank of Georgia (NBG) is to promote the stable functioning of the financial sector. Within this mandate, The National Bank ensures transparency of the financial sector and the protection of investors' and natural persons' rights. To fulfill the aforementioned, the National Bank supervises financial sector participants, evaluates and inspects their activities. In some cases, the evaluation process displays violations of legislation and deficiencies, based on which the National Bank takes necessary measures envisaged by the legislation; depending on the seriousness of the particular violation, measures vary from written instructions, warnings, and restrictions to the revocation of the company license.
Having examined the activities of JSC "Brokerage and Asset Management Company Wealthy" (ID: 406239565), The National Bank of Georgia has revealed several violations of the Georgian Capital Market Legislation, as well as the violations of the written instructions of the National Bank; based on which, the National Bank revoked the license of the company by the Decree N12 of February 18 of 2021 approved by the Governor of the National Bank of Georgia. The Decree N12 describes the grounds for revocation of the license and is publicly available for any interested party at the following link: https://matsne.gov.ge/document/view/5105766?publication=0
Revocation of a brokerage license means that the abovementioned company is restricted from performing brokerage activities as provided by the law. The list of brokerage services is prescribed by Article 23 of the "Law of Georgia on Securities Market". It is noteworthy that brokerage services, among other matters, include providing consultations, advice, and recommendations to clients regarding securities, managing clients' funds, organizing FOREX trading platforms, etc.
Carrying out any of these services (regardless of their name) without the relevant license and bypassing the law is a criminal offense and carries a particularly high risk for clients, soundness of the securities market and financial sector as well as the whole society. The National Bank of Georgia, once again, encourages citizens to be extremely careful with such companies and to use only the services of brokerage companies licensed by the National Bank.