FAS ESTABLISHED ILLEGAL COORDINATION OF ECONOMIC ACTIVITIES BY THE UNION OF INSOLVENCY PRACTITIONERS "SOZIDANIE"

The organization has to comply with the remedies of FAS and face an administrative fine

FAS Russia recognized the Union of Insolvency Practitioners "Sozidanie" as having violated antimonopoly legislation*. The authority found that the Union carried out illegal coordination of the economic activities of its member insolvency practitioners. This led to the refusal to conclude service agreements with trade organizers and operators of electronic trading platforms that were not accredited by the Union.

At the same time, in accordance with the current legislation**, insolvency practitioners can involve auction organizers and operators of electronic platforms that are accredited by other SROs.

Commission of FAS Russia found that restrictive measures on the exercise of powers by insolvency practitioners were contained in the Union's charter. In case of non-compliance, they were subject to disciplinary action, including fines.

The authority also found out that in the vast majority of cases, restrictions led to the involvement in the sale of property only of auction organizers and operators of electronic platforms accredited by the Union. This excluded the possibility of attracting bona fide persons accredited in accordance with the law in other SROs.

Based on the results of the consideration of the case, FAS Russia issued ruling to the Union to cease illegal coordination of economic activities. The organization must exclude the relevant provisions from its local acts.

In addition, the Union faces an administrative fine in accordance with the Code of Administrative Offences of the Russian Federation***.

* Part 5 Article 11 of the Federal Law of July 26, 2006 No. 135-FZ "On the Protection of Competition"

** Article 20.3 of the Federal Law of October 26, 2002 No. 127-FZ "On Insolvency (Bankruptcy)"

*** Part 5 of Article 14.32 of the Code of Administrative Offences of the Russian Federation