Company: FRHC
Filing Date: 2025-06-13
Form Type: 10-K
Source: 0000924805-25-000012
Chunk: 95

Company: Freedom Holding Corp.
Filing Date: 2025-06-13
Form: 10-K
Item: Item 1A
Chunk 95
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•As a U.S. public company listed on Nasdaq we have substantial regulatory reporting obligations.

•We are subject to risks related to anti-corruption laws in effect in the United States and the non-U.S. jurisdictions where we conduct business.

•A failure by our subsidiaries or our company to meet capital adequacy and liquidity requirements could affect our business, financial condition, results of operations and cash flows.

•The countries in which we operate have changing regulatory regimes, regulatory policies, and interpretations.

•Our measures to prevent money laundering and terrorist financing violations may not be completely effective.

•If we violate securities laws, or are involved in litigation in connection with a violation, our reputation and results of operations may be adversely affected.

•We are subject to risks related to potential litigation and arbitration.

Risks Related to Information Technology and Cybersecurity: 

•Our operations are highly dependent on the continued and proper functioning of our information technology systems and infrastructure.

•We interact with large volumes of sensitive data that expose us to data breaches and other cybersecurity risks and liabilities.

•The infrastructure on which our IT systems depend is subject to events that could interrupt our ability to operate.

•Failure or compromise of third-party systems operations or security could adversely affect our business and expose us to data breaches and cyber-attacks.

•To remain competitive, we must keep pace with rapid technological change.

•Incorporating AI technologies into some of our products and processes may present business, compliance, and reputational risks.

•Reliance on centralized infrastructure and cloud services increases our exposure to larger scale service disruptions and cyber-attacks.

Taxation Risks Related to Our International Operations:

•Global anti-offshore measures could adversely impact our business.

•OECD's Inclusive Framework's agreement on Pillar-Two solutions impacts our business.

•Frequent tax law changes in regions where we conduct operations could adversely affect our business and the value of investments.

•Transfer pricing legislation in certain jurisdictions where we operate may require pricing adjustments and impose additional tax liabilities.

•Uncertainties and ongoing changes in Kazakhstan's tax regime may have an adverse impact on our business.

Risks Related to Our Corporate Structure and Internal Operations:

•As a diversified holding company with few operations of its own, FRHC is reliant on the operations of our subsidiaries to fund its holding company operations.

•As a "controlled company" under Nasdaq rules, we qualify for exemptions from certain corporate governance requirements that may adversely affect our stock price.

•The interests of our controlling shareholder may conflict with those of other shareholders.

•If