Commissions charged without a contract on investment services

The Republic of Serbia Securities Commission has adopted a new interpretive release, at its 307th session of the VIII term of office, in response to a growing number of questions and complaints addressed to this institution. Specifically, the Securities Commission has warned against the practice of charging commissions for investment services, even when the investment firms have not signed an investment service contract with a client.

This practice occurrs when an investment firm is closing down its operations and its clients are being transferred to another investment firm. The action is carried out without the client consent, but is required for the closing of operations of the investment firm.

Please note that if a natural or legal person whose securities account is transferred to a new depositary opts not to conclude a contract on the provision of investment services with a new depositary, there is no legal ground for keeping the securities or charging commissions for the transfer of securities.