Russian regulatory authorities are working on the approach to handle the illegal activities of unregulated Brokers in Russia. What do we know?
11 May, AtoZForex – The Federal Anti-monopoly Service (FAS) is an official federal executive body, which is carrying out its functions with respect to the approval of the regulatory frameworks and control over compliance with the antimonopoly legislation in Russia.
Reportedly, the FAS is planning to take action in regards to the brokers that are operating in Russia with no authorisation.
Unregulated Brokers in Russia will be banned?
The FAS is preparing to crack down on the illegal activities of the brokers that operate with no trading license. Following the official start of the retail Forex regulations in Russia, authorities are ready to gain full control over the Forex market.
Earlier this month, the Bank of Russia has officially approved the basic standards for the financial operations across the markets. Specifically, all the Forex brokers with regulations In Russia are able to advertise their products. The law came into force starting from the 2nd of May.
As for the FAS initiative, it is still not clear which exact changes are going to take place. Yet, industry experts believe that the officials are planning the action against unregulated brokers in Russia.
What are the proposed measures?
Russian Central Bank has been working on the regulatory framework for several years before putting it into effect. Currently, Russian Forex market is a bit unstable. Some of the Forex brokers without regulation still do offer their services to investors, despite the regulatory rules. Moreover, there are brokers that are operating from outside Russia. They also manage to attract customers, while having the license from the authorities of other countries.
Reportedly, some of the Russian retail clients perceive the entity with FCA license as more reliable than the one with the license from the Bank of Russia. The reports suggest that the FAS will propose its recommendations in the Q3.
The information from the roadmap on the development of financial markets in Russia suggests that the proposals will be introduced in order to eliminate the possibility for unregulated brokers in Russia to onboard clients. Some of the key measures proposed in the roadmap include the organization of educational courses and seminars. The FAS and the Central Bank of Russia have developed this document together in attempt to advance Forex market conditions in Russia.
Think we missed something? Let us know in the comments section below.