The state Duma adopted in the second reading the bill on categorisation of investors-individuals
The state Duma adopted in the second reading the bill on categorisation of investors-individuals, preserving the unskilled right to buy major foreign stock, although with the condition - their list will identify securities.
The goal of innovation is to protect from excessive risk the Russians, increasingly investing on the stock exchanges due to the fall in the profitability of the deposits. In the first reading the bill was passed by the Parliament in may 2019, however, since it was significantly modified and relaxed. In particular, the triggering rule, the Central Bank rejected the idea to ban the purchase of foreign shares ordinary Russians who do not pass a special examination. The third reading is scheduled for July 21.
The second reading was agreed to keep the current approach for the separation of private investors into two categories: unskilled and skilled investors. When determining the categorization of investors expected the diligence of the brokers on the understanding of financial instruments. The law should come into force from the day of its official publication, except for certain provisions, which will take effect later.
Unskilled investors will be shares available to foreign issuers, provided that they are included in the calculation of at least one stock index, the list of which will be determined by the Bank of Russia.
Also under the bill, unskilled investors can buy listed exchanges securities bonds of Russian and foreign issuers excluding structural and subordinated bonds government securities of the Russian Federation, shares of open-end, interval and stock mutual funds (mutual Funds).
To be eligible for the acquisition of more complex financial instruments, the unskilled investor will need to be tested. But even after passing the test, he can say what he wants to buy them. Such an investor warn of the risks that it incurs in connection with this, but in this case, the transaction amount will be limited to 100 thousand rubles. In this case, if the cost of one lot or one securities exceeds 100 million, the transaction amount must not exceed the cost of one lot or a single security.
Under the bill, the number of qualified investors by force of law included commercial organization with annual revenue of at least 30 billion rubles and net assets of not less than 700 million rubles.
Requirements for recognition of a citizen qualified investor will be determined in the normative act of Bank of Russia, as currently in effect, said to RIA Novosti in the relevant Committee on Finance. Moreover, in the second reading of the bill excluded associated with the categorization of the duty of the broker and management company in regular inspection of a customer for compliance category assigned to it, and downgrade in the event of such inconsistencies.