Company: FRHC
Filing Date: 2025-06-13
Form Type: 10-K
Source: 0000924805-25-000012
Chunk: 94

Company: Freedom Holding Corp.
Filing Date: 2025-06-13
Form: 10-K
Item: Item 1A
Chunk 94
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 of funding.

•Our investments expose us to a significant risk of capital loss.

•We may suffer significant loss from changes in the KASE's requirements related to the discount coefficients on the securities in securities repurchase transactions.

•Our risk management framework may not be effective in mitigating risks and/or losses to us.

•Our modeling and assumptions used in assessing risks in our business may differ materially from actual results.

•In our insurance business, we may not be able to obtain reinsurance at required levels or prices, or otherwise collect on reinsurance, which could increase our exposure or limit our ability to write new policies. 

•We are dependent on our executive management team, particularly Timur Turlov, and our ability to hire and retain skilled personnel. 

•Extraordinary events beyond our control could negatively impact our business.

•Our financial results depend on interest rate volatility.

•We are exposed to foreign currency fluctuation risks.

•Damage to our reputation could harm our business.

•We may fail to adequately obtain, maintain, enforce and protect our intellectual property and similar proprietary rights, which may harm our business and competitive position.

Risks Related to the Global Political, Regulatory and Economic Environment:

•Our business and operations may be materially adversely affected by the ongoing Russia-Ukraine conflict.

•Sanctions imposed by Ukraine on our Chief Executive Officer and our former Ukrainian subsidiary could have a material adverse effect on us.

•Non-compliance with U.S., EU, UK or other sanctions programs could adversely impact our company.

•Emerging markets, such as many of the markets in which we operate, are subject to greater risks than more mature markets, including significant political, economic and legal risks.

•The economies of Kazakhstan and other countries in which we operate are vulnerable to external shocks and fluctuations in the global economy.

•Kazakhstan's economy is vulnerable to internal political and social unrest.

•Continuing inflation has driven up the cost of goods and services and may further increase our expenses, weaken our competitive position, or lower consumer spending power.

•Changes in U.S. or other countries trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations.

Risks Related to Legal and Regulatory Matters:

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•We are subject to extensive regulation, and the failure to comply with laws and regulations could subject us to monetary penalties or sanctions.

•Financial services firms have been subject to increased regulatory scrutiny increasing the risk of financial liability and reputational harm resulting from adverse regulatory actions.