The Central Bank Will Protect Russians from Risky Returns
OREANDA-NEWS. For the sake of high profitability, a large number of Russians began to open investment accounts to buy stocks and bonds, and began to invest their savings in complex stock instruments. Due to ignorance of the specifics of such investment, many citizens have lost and continue to lose their savings. As a rule, the higher the yield, the higher the risk, but many do not know this. The Central Bank is concerned and will rule out such practice from 2021.
According to Vedomosti, the Bank of Russia prepared amendments to the laws six months earlier than announced to restrict Russians' access to financial instruments. These bills will have time to be submitted to the State Duma by the end of 2020.
Earlier, the head of the Central Bank Elvira Nabiullina said that banks and investment companies intrusively offer Russians complex stock products. The regulator issued recommendations for financiers and bankers not to sell such products, but they were not heeded.
The new law will introduce a list of financial assets that are allowed for Russians without obtaining an "investor" qualification (to obtain a qualification, one must pass a test exam). Therefore, the law prohibits brokers until December 31, 2022, to execute the order of an unqualified investor to buy securities outside the permitted list.
The list of permitted shares includes shares of companies from the quotation lists of the Central Bank, government bonds of OFZ, bonds of high-rated Russian companies, shares of open-ended, exchange-traded and interval mutual funds, government bonds of the EU or EAEU countries, Great Britain and Ireland, and some corporate bonds of companies from these countries.