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STATUTORY CAPITAL REQUIREMENTS | 3 Months Ended
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Jun. 30, 2025
Broker-Dealer [Abstract] |
STATUTORY CAPITAL REQUIREMENTS | STATUTORY CAPITAL REQUIREMENTS The Company has two insurance subsidiaries operating in Kazakhstan: Freedom Life (a regulated life insurer) and Freedom Insurance (a regulated property and casualty insurance entity). The Law of the Republic of Kazakhstan No. 126-II "On Insurance Activities" (the "Insurance Law") is the main law regulating the insurance sector in Kazakhstan. It establishes a framework for insurance activities, registration and licensing of insurance companies and regulation of insurance activities by the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market ("ARDFM"). Freedom Life and Freedom Insurance is required to notify and receive verbal approval from the ARDFM of any proposals to declare or pay a dividend on its share capital. The amount of dividends these subsidiaries are permitted to declare is limited to the relevant subsidiary's realized retained earnings and dividends can only be paid to the extent they will not cause a breach to the minimum solvency and capital requirements of the relevant subsidiary. As of June 30, 2025 and March 31, 2025, Freedom Life and Freedom Insurance were in compliance with the ARDFM dividend, minimum solvency and minimum capital requirements. Freedom KZ in its capacity of an insurance holding is also limited in declaration and payment of dividends if such payment leads to breach of capital ratios applicable to insurance Freedom Life and Freedom Insurance. There are no significant differences between the statutory accounting practices and statements prepared in accordance with U.S. GAAP for the insurance subsidiaries. In addition, our subsidiaries operate under various securities brokerage, banking and financial services regulations and must maintain such licenses in order to conduct their operations. As of June 30, 2025 and March 31, 2025, we, through our subsidiaries, held: (a) brokerage licenses (i) in Kazakhstan issued by ARDFM and the Astana Financial Services Authority (the "AFSA"), (ii) in Cyprus issued by the Cyprus Securities and Exchange Commission ("CySEC"), (iii) in the United States issued by FINRA, (iv) in Armenia issued by the Central Bank of Armenia, and (v) in Uzbekistan issued by the Ministry of Finance of the Republic of Uzbekistan; (b) a banking license for foreign currency operations license in Kazakhstan issued by the ARDFM; (c) a banking license for corporate and retail banking services in Kazakhstan issued by the ARDFM (including for currency exchange operations); (d) payment service provider in Kazakhstan is specially registered in such capacity with National Bank of the Republic of Kazakhstan, payment services providers in Uzbekistan and Kyrgyzstan hold licenses from the National Bank of the Kyrgyz Republic and the Central Bank of Uzbekistan, respectively; and (e) a banking license in Tajikistan issued by the National Bank of Tajikistan. In addition, following receipt of a principal approval by the Turkey's financial regulatory and supervisory authority granted on January 9, 2025, we are in the process of obtaining a license to provide brokerage services in Turkey. Our U.S. broker-dealer subsidiary is subject to regulatory oversight by U.S. authorities, including the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), with respect to its brokerage and investment advisory activities in the U.S. The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of June 30, 2025 for the Company and each of subsidiaries that are regulated entities that is material for our consolidated financial statements.
(amounts in thousands) |  | Regulated activities |  | Net Capital/Eligible Equity |  | Required Minimum capital/solvency |  | Excess regulatory capital |  | Retained earnings
Freedom Holding Corp. |  | Non-regulated holding company |  | $ | 486,790 |  |  | $ | 200,000 |  |  | $ | 286,790 |  |  | $ | (212,344) |
Freedom EU |  | Brokerage |  | 449,516 |  |  | 19,320 |  |  | 430,196 |  |  | 817,674 |
Freedom Bank KZ |  | Bank |  | 388,858 |  |  | 177,077 |  |  | 211,781 |  |  | 173,383 |
Freedom KZ |  | Brokerage |  | 42,039 |  |  | 378 |  |  | 41,661 |  |  | 101,314 |
Freedom Global |  | Brokerage |  | 140,668 |  |  | 30,929 |  |  | 109,739 |  |  | 145,017 |
Freedom Life |  | Life Insurance |  | 69,397 |  |  | 11,350 |  |  | 58,047 |  |  | 75,319 |
Freedom Armenia ("Freedom AR") |  | Brokerage |  | 58,453 |  |  | 787 |  |  | 57,665 |  |  | 58,929 |
Freedom Insurance |  | Property and Casual Insurance |  | 42,249 |  |  | 11,350 |  |  | 30,898 |  |  | 25,779 |
Other regulated operating subsidiaries |  | Other |  | 17,075 |  |  | 251 |  |  | 16,824 |  |  | (32,320) |
|  |  |  | $ | 1,695,045 |  |  | $ | 451,443 |  |  | $ | 1,243,601 |  |  | $ | 1,152,751 |
According to the requirements of National Bank of Republic of Kazakhstan, the regulator of Freedom KZ and Freedom Life, capital is adjusted through subtraction of non-liquid assets. Consequently, net capital for regulatory purposes may be lower than retained earnings balances. For the purposes of capital requirements applicable to Freedom EU, which is regulated by the Cyprus Securities and Exchange Commission and Freedom Global regulated by Astana Financial Services Authority, current year profit is not included within net capital for regulatory purposes, as profits can only be included in net capital after a statutory audit is completed. The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of March 31, 2025 for each of our subsidiaries that are regulated entities that is material for our consolidated financial statements.
(amounts in thousands) |  | Regulated activities |  | Net Capital/Eligible Equity |  | Required Minimum capital/solvency |  | Excess regulatory capital |  | Retained earnings
Freedom Holding Corp. |  | Non-regulated holding company |  | $ | 526,906 |  |  | $ | 200,000 |  |  | $ | 326,906 |  |  | $ | (256,096) |
Freedom EU |  | Brokerage |  | 450,903 |  |  | 19,320 |  |  | 431,584 |  |  | 607,659 |
Freedom Bank KZ |  | Bank |  | 382,259 |  |  | 175,396 |  |  | 206,862 |  |  | 159,119 |
Freedom KZ |  | Brokerage |  | 43,568 |  |  | 390 |  |  | 43,178 |  |  | 100,440 |
Freedom Global |  | Brokerage |  | 66,217 |  |  | 21,564 |  |  | 44,653 |  |  | 56,941 |
Freedom Life |  | Life Insurance |  | 58,246 |  |  | 11,692 |  |  | 46,554 |  |  | 70,574 |
Freedom Armenia ("Freedom AR") |  | Brokerage |  | 47,994 |  |  | 773 |  |  | 47,221 |  |  | 48,067 |
Freedom Insurance |  | Property and Casual Insurance |  | 33,646 |  |  | 11,692 |  |  | 21,954 |  |  | 29,150 |
Other regulated operating subsidiaries |  | Other |  | 14,130 |  |  | 267 |  | 13,863 |  |  | (28,622) |
|  |  |  | $ | 1,623,869 |  |  | $ | 441,094 |  |  | $ | 1,182,775 |  |  | $ | 787,232 |

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1D -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1D Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 1F -Publisher FASB -URI https://asc.fasb.org/1943274/2147477270/942-505-50-1F + Details
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