The regulator won’t protect rich people from Forex dealers, and the poor and unskilled will limit access to this market. About this informed the Deputy Chairman of Bank of Russia Sergey Shvetsov, speaking in the state Duma on Thursday, April 14.
All investors in the Central Bank’s plan to divide into three categories — professional, skilled and unskilled. As explained Shvetsov, the final criteria for the separation of investors into groups yet. “While the proposal, we will formulate, by classification will depend on two criteria: experience and knowledge is the first criterion — the financial situation,” he said. Finalize the set of criteria for investors the Central Bank plans by may to discuss with the market.
Shvetsov said that the wealthy citizens of the state will not defend it, because they “have the ability to hire a consultant to get an education”. “Here after you will go to a Forex dealer and you’ll run out of money, then we will start to protect you” — said Shvetsov. Unskilled investors the Central Bank is ready to restrict access to some tools.
What investment instruments can be banned for those citizens who fall into the category of unskilled, Shvetsov said. According to him, if it turns out that in the category of unskilled investors will get a lot of citizens, examples of acceptable tools can be one, but if among the unskilled are the least experienced and wealthy citizens, “will be more stringent restrictions”. “On the Forex market definitely will not let”, — he added.
“Very important protection of the rights of the consumer because the consumer is a weak party in the relationship with the financial sector. From the protection of the consumer depends on the degree of confidence in the financial market, and trust is the soul of the financial market”, — said Sergey Shvetsov.
“I hope that the regulator and the Forex dealers in the near future will be able to discuss the details of the new initiative, and for 2016 to build an effective dialogue for all emerging issues and the wishes of the regulator and the market”, — said the member of the Board of Directors of “Alpari” Vladislav Kovalchuk. According to him, this will allow to clearly understand any details, for example, in this case, what criteria the Bank of Russia invests in the notion of “qualified private investors”.
“We fully share the position of the regulator that it is necessary to protect the interests of citizens in the Forex market. But while the regulated market is in its formative stages, it is very difficult to estimate how many citizens fall into the category of “qualified investor” and will use the services of licensed Forex dealers,” says the head of the Association of Forex dealers Eugene Masharov. He feared that in the event of severe restrictions for the clients of Forex-dealers licensed by the Central Bank and joining the SRO, the rights of citizens who trade in the Forex market through the websites of the companies registered in offshore zones will not be protected. “It’s no secret that after the entry into force of the law on the Forex market, some market participants are in no hurry to get a license and continue to serve the citizens through its foreign patterns. Formally, their activities are not regulated by the law on the securities market”, — notes Masharov.
That the Central Bank plans to ban the Forex dealers to make deals with individuals that are not qualified investors, previously reported by “Interfax”. As the Agency wrote citing a source familiar with the situation, the opinion of the regulator outlined in a letter to the Chairman of the Duma Committee on financial market Nikolay Gonchar.
Sergey Shvetsov known for its critical attitude to the Forex market and the quality of services provided by dealers the citizens. In December 2015 at a press conference, the Deputy Chairman of the Central Bank compared Forex market with the casino and stated that the regulator does not intend to support him because he’s not giving the Russians any benefit. “Forex is a casino, and the Forex satisfies a completely different need — the gambling (from the English. gambling — play for money). And people do not always have sufficient knowledge and financial discipline,” said Shvetsov, adding that the Central Bank is not interested in making these services on the Russian financial market.
In 2014, the Bank of Russia adopted the law on the Forex dealers, according to which from 1 January 2016, all participants need to obtain a license, as well as to create a self-regulatory organization and the compensation Fund. As previously posted , from the beginning, a small part of the Forex dealers curtailed their activities, others continued to provide services through offshore companies or began to offer them under the guise of banking products.
According to “Interfax-CEA”, in 2015 clients Forex dealers were 460 thousand citizens, their number, compared with 2014 increased by 15%. The average size of the client’s Deposit — about $1 thousand of the Turnover of the Forex market was about $330 billion a month. Compared with 2014, the aggregate volume of individuals ‘ transactions on the Forex market in 2015 decreased by about 5% due to the crisis situation in the Russian economy. The share of the three largest dealers account for 60% of active clients (278 thousand) and 57% of total turnover ($189 billion) of the market.