Deliberation and amendments continue on the Russian Forex Law. After the latest meeting between the Bank of Russia representatives and the CRFIN held yesterday, it was announced that all Forex dealers such as managers and accountants at FX firms will be required to obtain “First-category Certificates”. This is required to serve as a guarantee to show that such parties have the necessary competence and knowledge base required for executing these functions.
A test will be carried out to ascertain the suitability of such individuals. A 100 point maximum can be awarded, with a cut-off mark of 80 points for eligibility to the certificate. Some of the areas that the test will cover includes:
- Licensing of the participants of the securities market
- Rules for the operations of brokers, dealers and securities managers
- Protection of investors
- Margin trading
- Back-office organisation
- Management of internal reports and accounting
- Internal controls of securities firms
The new rule for FX professionals to obtain certificates is a followup from past deliberations on the Russian Forex law, which is scheduled to take operation this year. The general public of Russia have also shown disdain for the restrictions placed on leverage. The Russian Law introduced a maximum FX trading of 1:50, with the Central Bank holding the authority to increase this to 1:100 on some instruments when it deems fit.