Market participants have criticized the idea of the insurance Fund of private investments


The draft law on insurance funds for individual investment accounts (IMS) has attracted a lot of questions from market participants. Key — the transfer of the insurance Fund by the Agency on insurance of contributions (ASV) and fears that stated in the bill, the amount of compensation to private investors is too high and fraught with exhaustion of the Fund or the growth rates of managers and brokerage firms for investors.

Key risks

Questions to the bill was voiced by the Federal Foundation for the protection of shareholders and depositors. He appealed to the state Duma (the document is available) with the proposal not to give the DIA management of insurance Fund IMS and reduce the amount of compensation for private investors affected by the collapse of the professional participants. Under the bill, which was developed by the National Association of securities market participants (NAUFOR) and was introduced in January 2017 to the state Duma Deputy Anatoly Aksakov and member of the Federation Council Nikolay Zhuravlev, insurance is funds from private investors in the amount of 1.4 million rubles (for the same insured means natural persons in the banks), placed on the individual accounts, in the case of revocation of the license of the broker, the management company or the Depositary, as well as their bankruptcy and the introduction of a regulator of the moratorium on payments. Investment risks (loss of income) to insure not planned yet.

According to representatives of Fund, transfer of management functions ASV can lead to the fact that private investors will create the false impression that repayment of their investment (in case of bankruptcy of the broker or Depositary of UK, license revocation, etc.) is guaranteed by the state. “Meanwhile, in contrast to the system of Bank Deposit insurance (where in the case of shortage of Fund for payments to replenish from the budget or from the funds of the Central Bank. — ) it is not. The state does not bear the risk of default insurance Fund investments,” explains managing the Federal Fund for the protection of shareholders and depositors Marat Safiulin.

In addition, to place the funds in individual accounts of citizens began only in 2015, and the maximum amount that they could save to get a tax deduction amounts to 800 thousand rubles., he continues: “So it is unclear why it is proposed to compensate for 1.4 million rubles. it seems to Us that this amount is overstated.” In case of bankruptcy of one or two major brokers (for example, because of the crisis or other reasons) the size of the Fund is simply not enough to pay all the victims, says Safiulin. “To make up for the costs of the Fund can only be due to additional contributions of professional participants, however, this may cause a significant decline in the profitability of their business,” he said.

According to Safiulina, to determine the amount of compensation to the owners of the IMS only after the analysis of investment portfolios and market risks.

What is IMS

The bill applies to more than 200 thousand citizens, opened, as of January 2017, individual investment accounts on the Moscow exchange. From 1 January 2015, individuals can open an individual investment account with a broker (brokerage account) or the management company (trust management account). The amount payable in a calendar year under the Treaty, the IMS can be up to 400 thousand rubles. these funds can be used to invest in stock market instruments, including equities, government and corporate bonds, including Eurobonds, as well as exchange-traded funds (ETFs), mutual funds, etc. in Addition to the resulting investment income to the investor would be entitled to one of the two types of investment deductions under the tax to incomes of physical persons: deduction of 13% on the amount of annual contribution (return to 52 thousand rubles per year) or exemption from taxation of the entire amount of income earned on IMS (at the time of termination).

According to the Moscow exchange, at the end of 2015 was opened 88,9 thousand accounts at the end of 2016 — 195,2 thousand accounts. The greatest number of IIS was opened by the clients of Sberbank (58.7 per thousand), IK “Finam” (35.8 thousand), “Opening Broker” (30.8 thousand), BCS (28.2 thousand).

Position regulators

In supervising the financial market of the Central Bank and the Finance Ministry, where for clarification addressed , I think the issue worthy of discussion.

The Bank of Russia said that the participation in the insurance system IMS Agency on insurance of contributions “raises serious doubts”. “Unskilled investors can be misled by the fact of participation ASV”, — said the representative of the regulator. The Bank of Russia noted that they admit the possibility of transferring the management of the Fund IMS insurance to the Federal Fund for the protection of shareholders and depositors, but noted that the issue needs to be discussed with the participants.

As for the size of payments to the affected holders of investment accounts, as stated in the CBA, it is necessary to analyze the current situation on the market of private investments, and to assess the impact on the cost of services rendered by brokers, managers and depositaries.

The Ministry of Finance agree that if funding for MIS will be significant, the insurance Fund will not be able to provide guarantees in the planned size of all private investors. However, as stated by the representative of the Department, the amount of compensation for owners of investment accounts seems fair, “since it meets the amount of compensation in the Bank”. “Thus, not a competition of one product with others,” he said. Any resolution of the situation in the Ministry of Finance is not offered.

The opinion of the market

Market fears of regulators and the Federal Fund for the protection of shareholders and depositors did not share, but points to other “pain points” of the bill.

The head of NAUFOR Alexey Timofeev considers that the Fund in its planned volume should be enough under certain conditions. He pointed out that the calculations of what should be the amount of the insurance Fund IMS were made for a wider range of insured events than that provided by the bill. “According to preliminary calculations, the amount of the Fund should be not less than RUB 300 million, and at the time of formation of the Fund (one or two years) should be a moratorium on the payment of compensation,” he explained.

However, a narrower range of insured events in reality makes the tool largely useless for the insured persons, i.e. investors. The fact that the bill on compensation Fund IIA, introduced in the state Duma, it is expected that the insured will only be “separate” assets of private investors, that is funds on IMS that the broker or Manager may not use for their own purposes. “We have concerns that in this case most of the owners of IMS, does not fall under the guarantee of insurance Fund”, — said the representative of large investment company. According to him, these “separate” accounts on the market is very small, mostly open only to large customers. “This is due to the high cost of maintenance of such accounts,” he explained.

Moreover, according to market participants, Fund management insurance IIS must be submitted to the DIA. “This is the most comfortable option, since ASV is associated with reliability. The Agency ensures that compensation will be paid,” — said the President-Chairman of the Board of “Finam” Vladislav Kochetkov. In addition, he said the DIA already have experience in the management of such funds. Now under the control of the DIA is a Fund of insurance of Bank deposits and guaranty Fund of the NPF. The General Director of MC “Alfa-capital” Irina Krivosheeva says that in developing the concept of insurance IMS were inspired by the existing Deposit insurance system. “Given the fact that the average size of IIS on the market right now is 150 thousand rubles., the amount of compensation to 1.4 million rubles. enough to the average investor could place funds in the market for seven or eight years,” she said. At the same time, the risks, the wealthiest of the owners of investment accounts insurance Fund does not cover, recognized the Manager.

“We are ready to discuss improvements to the bill, including the calculation of the amount of insurance payments to owners of IMS, and also the one who will manage this Fund,” — said the head of the Committee on financial markets of the state Duma Anatoly Aksakov. According to him, the deputies have no fundamental objection to the management of the insurance Fund IMS was transferred to another organization, not the DIA. “Such a discussion is underway, but it is important for us to understand the position of the Central Bank, the government and the presidential administration on this issue”, — said the Deputy.

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