Kyriacos Nicolaou sits down with Executive Director Evgenii Tiapkin to talk about the company’s journey to get to where it is now
In the world of finance, few milestones carry the weight and significance of going public by securing a listing on the American stock exchange.
For Freedom Holding Corp., the parent company of the online brokerage Freedom24, the celebration of five years since its listing on Nasdaq, home for tech giants like Microsoft, Apple and Tesla, marks not only a business achievement but also a symbol of its commitment to transparency, growth and regulatory excellence.
As part of this significant anniversary, the Cyprus Mail sat down with Evgenii Tiapkin, Executive Director of Freedom24, to discuss the impact of the Nasdaq listing on the company’s operations, its success in Cyprus and plans for the future.
In this interview, Tiapkin reflects on the journey that led to the Nasdaq listing as one fraught with challenges but ultimately rewarding.
Navigating challenges and successes of listing
“From the beginning, the Nasdaq listing was a long and winding road,” Tiapkin said, recounting the arduous process that took nearly two years to complete.
For any company, being listed on Nasdaq requires approval by the US Securities and Exchange Commission (SEC), which Tiapkin describes as the “strictest and largest regulatory body in the world”.
This approval was followed by stringent compliance with Nasdaq’s own stock exchange regulations, making the process complex and exhaustive.
Tiapkin admits that the first years after the listing were particularly challenging for Freedom24, especially when it came to navigating new operational standards.
“We had to switch to a completely new financial auditing standard,” he explained, referring to the fact that only auditors with Public Company Accounting Oversight Board (PCAOB) certification are allowed to audit publicly traded companies in the US.
Despite the demanding process, the experience proved invaluable. Today, Freedom24 has established itself as one of the leading brokerage firms in Europe.
“I believe that Freedom24 has one of the best teams in Europe, not just in Cyprus,” Tiapkin said.
The Nasdaq listing, he explained, set the company apart from its competitors, bringing it credibility, transparency and a new level of professionalism.
“Being publicly listed places us in a completely different league. Without this level of transparency and regulation, we would be just another brokerage firm,” Tiapkin said, noting that being publicly traded has enabled the company to stand out in a crowded marketplace.
In the five years since the listing, Freedom Holding Corp., Freedom24’s holding company, has achieved impressive growth, including that of Freedom24 in Europe.
According to Tiapkin, one of the company’s most notable accomplishments has been maintaining its listing on Nasdaq, a feat that is no small task given the regulatory scrutiny involved.
“A major achievement since the Nasdaq listing? The first one is that we’ve maintained our listing,” he said, highlighting the rigorous standards that must be continuously met to remain listed on such a prestigious stock exchange.
But the achievements do not stop there. Tiapkin shared that the number of clients served by Freedom24 has dramatically increased.
“We now have over 300,000 clients,” Tiapkin said.
While he doesn’t attribute this growth solely to the Nasdaq listing, he acknowledges that being a publicly traded company has had a positive influence.
“Our listing obligations, the quality of our services, the quality of our support, our relationships with clients and our commitment to being as open and transparent as possible have all contributed to this result,” he said.
The benefits of being listed on Nasdaq extend beyond just client growth. Tiapkin explained that the company’s publicly traded status creates an added layer of responsibility and oversight, both from regulators and from investors.
“Since we are tradable, it’s easy for investors to open brokerage accounts, buy or sell our securities, and that keeps us constantly on the radar – not only of regulators and auditors but also of investors and shareholders,” he said.
The strategic role of Cyprus
For Freedom24, Cyprus plays a pivotal role in its operations, not just as a base but as a headquarters that has allowed the company to flourish in the region.
Tiapkin, who has lived and worked in Cyprus for many years, expressed deep appreciation for the country, calling it “home” to both him and the company.
“We started our business when we were a team of just eight or ten people,” he recalled.
“Slowly over time, we grew, and now we are a group of around 400 employees.”
Cyprus, with its favourable business environment and strong regulatory framework, has proven to be a strategic location for Freedom24.
What is more, Tiapkin emphasised the importance of Cyprus, particularly with the Cyprus Securities and Exchange Commission (CySEC) providing oversight that he believes is as rigorous, if not more so, than in other countries.
“The regulatory environment has changed dramatically, and we adapted alongside these changes,” Tiapkin said, noting that Freedom24’s compliance with CySEC ensures a strong adherence to regulatory standards in Europe.
He explained that far from being a burden, the strict regulations have helped the company build trust with clients, ensuring that it operates at the highest standard.
The interview also highlighted that Freedom24’s presence in Cyprus is not just about business; it also extends to making significant contributions to the local economy and community.
The company’s presence has resulted in new jobs, tax revenues for the state and fostered growth in various sectors.
“Over the past five years, we have injected about €300 million into the local economy,” he stated.
Social responsibility and a vision for growth
Beyond economic contributions, Freedom24 also takes its social responsibility seriously.
“We are socially responsible because we want to improve the community around us,” Tiapkin said.
In this context, the company supports local sports and cultural events, seeing this as part of its broader mission to create a positive impact on society.
As Freedom24 continues to grow, its ambitions stretch beyond brokerage services. The company has been awaiting approval for an Electronic Money Institution (EMI) licence from the Central Bank of Cyprus, which Tiapkin expects will significantly expand their capabilities.
“We aim to expand our services beyond brokerage to banking as well. We have the technical capacity, the technology and experience to significantly expand our services, catering more digital solutions to clients all across the EU,” he explained.
Once the EMI licence is secured, Freedom24 plans to launch a banking platform, allowing it to offer clients a more comprehensive range of financial services.
But Freedom24’s vision doesn’t stop at banking. Tiapkin hinted at the possibility of creating a so-called ‘super app’ that would integrate various services, from banking and brokerage to insurance, among other things, all within one platform.
“We can achieve this, but we need support from the government,” he said, underscoring the company’s long-term commitment to innovation and growth.
Freedom24 also has plans to continue expanding its network and services in Europe.
“Though headquartered here in Cyprus, we have had representative offices in other EU member states since 2018,” Tiapkin said.
The company operates representative offices in Austria, Italy, France, Poland, the Netherlands, Spain, Greece, Bulgaria, and a tied agent in Germany with the aim of providing localised support and services to its growing European client base.
Tiapkin explained that this network of representative offices allows clients to access technical support with their accounts and receive information and marketing communication in their local language, further enhancing the company’s reputation as a client-focused, global brokerage.
Regulatory compliance and transparency
“As a subsidiary of Freedom Holding Corp., a publicly traded entity, we benefit from stringent regulatory oversight, particularly in the US, where our holding must comply with both SEC and Nasdaq rules.”
This is in addition to the rigorous standards set by CySEC in Cyprus, as well as other European regulatory bodies. Freedom24 strive to comply with the requirements of EU countries where they have representative offices, including the specific requirements of BAFIN, Belgian, Spanish, Portuguese and other regulators, some of whose provisions may even be stricter than common European requirements.
“There’s a misconception about Cyprus, especially among those from Western Europe, who think it lacks business regulation and thus does not provide the highest level of security,” Tiapkin said.
“But this is far from the truth.”
He stressed that Cyprus has a strong regulatory framework, one that often exceeds the standards of other European countries.
“We are happy and fortunate to be regulated here,” Tiapkin said, adding that CySEC’s stringent requirements have helped Freedom24 maintain its reputation for safety and reliability.
Furthermore, Freedom24 undergoes multiple audits throughout the year, including quarterly and annual audits in line with US standards.
“We comply with all local European regulatory procedures,” Tiapkin stated. “As part of our commitment to maintaining the highest level of compliance, our team has been diligently working to stay abreast of the latest regulatory requirements. Our efforts have been focused on implementing updates and enhancements to our compliance processes to ensure they are in full alignment with current standards.”
This rigorous auditing process ensures that Freedom24 operates with full transparency, offering clients peace of mind when investing through the company.
A message to clients and investors
As Freedom Holding Corp. celebrates its Nasdaq listing anniversary, Tiapkin’s message to clients and investors is one of trust and confidence.
“The message is very simple: choose the most trustworthy counterparty at any time,” he said.
For him, trust is the cornerstone of Freedom24’s business model.
Looking to the future, Tiapkin emphasised that Freedom24 will continue to innovate and expand, always with the goal of providing the best possible services to its clients.
Whether through the development of new financial products, the expansion of its network, or the introduction of its anticipated banking services, Freedom24 is committed to remaining at the forefront of the European financial sector.
“We will continue to build on that trust, not only because of our regulatory standing but also because we have one of the best IT solutions and top-tier service,” he said.
“We are always looking for ways to improve and provide additional services to our clients, whether through our brokerage licence, a potential banking licence, or by expanding our network and services in Europe.”
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