In a Russian broker bankruptcy, client securities and money are analysed separately from the broker’s own property, but the outcome depends on the agreement, records and assets actually available. Where client property is sufficient, transfer claims follow the special regime. A shortfall leaves an unsatisfied monetary claim against the bankrupt broker.
Collect formal reports
Broker reports, depository statements and acquisition-cost records help prove the assets and their value.
Check reuse rights
The agreement may permit the broker to use client money or securities, materially affecting the remedy.
Monitor official records
Verify the licence with the Bank of Russia and the court procedure in the official dockets.
After a Broker Encounters Financial Distress
Licence cancellation, temporary administration and a court bankruptcy are separate events. A client must establish the professional participant’s current status and the person authorised to receive documents. Articles 185.1–185.7 of Federal Law No. 127-FZ supplement the general financial organisation insolvency rules.
Client Money and Securities
Article 185.4 requires an assessment of whether property held in special brokerage, depository, trading and other prescribed accounts is sufficient. Under Article 185.5, client claims are satisfied in full if client property is sufficient. Where pooled property is insufficient to transfer everything belonging to several clients, the available property is transferred proportionately to the admitted claims.
Why the Brokerage Agreement Matters
The Bank of Russia specifically highlights any contractual right allowing the broker to use client assets for the broker’s own operations. That clause, the method of segregated accounting and the assets actually available affect the recovery route. A blanket statement that securities are always fully protected may therefore be inaccurate without reviewing the agreement and records.
Client Action Plan
- download the latest broker report and acquisition-date and cost records;
- obtain the depository statement and cash balance evidence;
- verify the licence and Bank of Russia decision;
- find the court case, order and federal register notice;
- compare recorded assets, obligations and contractual reuse rights;
- file the property transfer request and any required monetary claim;
- retain proof of filing and monitor the determination.
When a Register Claim Remains
If client property is insufficient, the unsatisfied claim is entered in the creditor register and paid as a third-priority claim under Article 185.5. This does not guarantee full recovery. A claim for particular securities, cash balance, damages and other amounts should be separated because their legal basis, evidence and treatment may differ.
| Asset or claim | Evidence | Possible route |
|---|---|---|
| Securities | Depository statement, broker report, security identifiers | Transfer of client property |
| Cash balance | Report, payment records, agreement terms | Transfer or monetary claim |
| Pooled client assets | Amount of each admitted client claim | Proportionate transfer if deficient |
| Unsatisfied balance | Calculation and evidence | Third-priority register claim |
| Tax acquisition cost | Purchase date and price | Records for a new broker and future tax calculation |
Frequently Asked Questions
Do client securities form part of the broker estate?
Client property has a special regime. The result depends on accounting, available property and agreement terms.
What should be done first?
Preserve reports and statements, verify the licence and official case records, then file with the person named in the notice.
What if pooled securities are insufficient?
Article 185.5 provides for proportionate transfer according to admitted client claims.
What happens to the unsatisfied balance?
It enters the creditor register as a third-priority claim.
Why preserve acquisition cost?
A new broker and later tax calculation may require evidence of the original purchase date and price.
Official Sources
- Article 185.4 of Federal Law No. 127-FZ.
- Article 185.5.
- Bank of Russia: broker bankruptcy and licence cancellation.
- Bank of Russia financial market participant search.
Related guides: a debtor’s brokerage account in personal bankruptcy, the creditor register and corporate bankruptcy.
Need to Classify a Claim Against a Broker?
An initial consultation can separate client property and monetary claims, review the agreement and prepare the evidence package.
BOOK AN INITIAL CONSULTATIONThis material is general information as at August 2026. The outcome depends on the agreement, accounting method, available client property and court orders.
Broker Insolvency and Client Bankruptcy Are Different Procedures
| Event | Source | Action |
|---|---|---|
| Trading restriction | Broker notice | Save reports |
| Licence cancellation | Bank of Russia | Check procedure |
| Bankruptcy petition | Court docket | Monitor case |
| Procedure opened | Insolvency register | File records |
| Asset shortfall | Manager calculation | Submit claim |
Obtain the report
Record balances, trades, acquisition costs and liabilities.
Review the agreement
Focus on any right to reuse client cash or securities.
Separate remedies
Transfer of client property and a monetary claim follow different routes.
Actual Custody and Reuse Rights Drive the Analysis
The Bank of Russia advises clients to obtain evidence and verify whether the broker could use client assets. Cash held under the segregated special-account regime and client securities are not intended to settle the broker’s own debts, but actual availability and sufficiency still require proof. Articles 185.4–185.5 of Federal Law No. 127-FZ provide special rules for transfer of client property, proportional transfer where pooled property is insufficient and a creditor claim for the remaining shortfall. No complete recovery should be promised in advance. Practical review requires formal broker, depositary or operator statements, the agreement, transaction history, acquisition-cost evidence and tax-regime records rather than app screenshots. Cash, securities, a claim against an issuer and a digital right are different assets and must not be combined without reconciliation. Disclose domestic and foreign platforms fully to the financial manager and court, but never publish passwords, private keys or authentication codes. Valuation is date-specific and may change with the market. A transfer, sale or account closure shortly before filing does not automatically protect an asset and may require transaction review. Tax consequences, fees, transfer restrictions and actual realizability must be assessed separately. This guide provides a preparation route; the treatment of a particular asset depends on records and the court process.