Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

v3.24.3
RELATED PARTY TRANSACTIONS
 6 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
September 30, 2024 March 31, 2024
Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions
ASSETS
Cash and cash equivalents $ 1,915  $ 569,179  $ 203  $ 545,084 
Companies controlled by management
 1,915  203 
Restricted cash $ 6,669  $ 895,651  $ —  $ 462,637 
Management 1,404  — 
Companies controlled by management
 5,085  — 
Other
 180  — 
Trading securities $ 1,231  $ 3,601,118  $ 1,326  $ 3,688,620 
Companies controlled by management
 1,231  1,326 
Margin lending, brokerage and other receivables, net
 $ 162,066  $ 1,623,962  $ 22,039  $ 1,660,275 
Management 9,378  8,849 
Companies controlled by management
 152,688  13,190 
Loans issued $ 141,290  $ 1,368,656  $ 147,440  $ 1,381,715 
Management 604  117 
Companies controlled by management
 140,686  147,323 
Other assets, net $ 14,914  $ 169,375  $ 5,257  $ 102,414 
Companies controlled by management
 14,914  5,257 
LIABILITIES
Customer liabilities $ 191,607  $ 3,329,133  $ 44,127  $ 2,273,830 
Management 9,918  12,604 
Companies controlled by management
 180,557  31,253 
Other
 1,132  270 
Other liabilities $ 729  $ 133,248  $ 9,854  $ 81,560 
Management 284  7,947 
Companies controlled by management
 445  1,907 
Three Months Ended September 30, 2024 Three Months Ended September 30, 2023
Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions
Revenue:
Fee and commission income $ 837  $ 121,051  $ 20,022  $ 111,703 
Management 290  183 
Companies controlled by management
 543  19,839 
Other
 4  — 
Interest income $ 375  $ 210,324  $ 9,731  $ 213,063 
Management 215  232 
Companies controlled by management
 160  9,499 
Expense:
General and administrative expenses $ 6,247  $ 53,240  $ 5,229  $ 29,630 
Management 44  8 
Companies controlled by management
 6,203  5,219 
Other —  2 
Six Months Ended September 30, 2024
Six Months Ended September 30, 2023
Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions
Revenue:
Fee and commission income 1,703  236,540  35,917  210,406 
Management 509  465 
Companies controlled by management
 1,188  35,451 
Other
 6  1 
Interest income 644  436,328  15,084  362,412 
Management 419  305 
Companies controlled by management
 225  14,779 
Expense:
General and administrative expenses 8,971  98,345  7,561  54,105 
Management 277  171 
Companies controlled by management
 8,694  7,388 
Other —  2 
During the three and six months ended September 30, 2023, the Group engaged in various related party transactions, a substantial amount of which were conducted with FST Belize, a Belize company which is wholly owned personally by the Company’s chief executive officer, chairman and majority shareholder, Timur Turlov, and is not part of the Group. During such periods FST Belize had its own brokerage customers, which included individuals and a market-maker institution and conducted business with the Group through a client omnibus account at Freedom EU. The Group terminated these arrangements with FST Belize before the end of fiscal 2024, leading to a decrease in related party transactions during three and six months ended September 30, 2024 as compared to the corresponding periods in 2023.
As of September 30, 2024 and March 31, 2024, the Group's margin lending receivables from Fresh Start Trading Ltd amounted to $151,592 and $12,890. Fresh Start Trading Ltd is a Cyprus-based company that is controlled by a single individual who is a member of Freedom EU's management. Fresh Start Trading Ltd is mainly involved in foreign currency trading activity. Margin lending receivables from Fresh Start Trading Ltd are mainly denominated in Euros, and they are fully collateralized by cash denominated in U.S. dollars.
During the three and six months ended September 30, 2024, the Group incurred general and administrative expenses from Kazakhstan Chess Federation in the amount of $4,308 and $6,353 respectively. Kazakhstan Chess Federation is a Kazakhstan-based company in which Timur Turlov holds a management position. The Group continues to support the development of chess as a sport in Kazakhstan. During the three and six months ended September 30, 2024, the Group has made financial contributions to the Kazakhstan Chess Federation to support the preparation and holding of championships, tournaments, training camps and other events.
As of September 30, 2024 and March 31, 2024, 76% and 24%, respectively, of the Group's customer liabilities were deposits from Fresh Start Trading Ltd held by Freedom EU related to brokerage services provided by Freedom EU to Fresh Start Trading Ltd.
As of September 30, 2024, and March 31, 2024 the Group had loans issued which included uncollateralized bank customer loans purchased from FFIN Credit, a company outside of the Group which is controlled by Timur Turlov.