The Bank of Russia has approved the basic standard for protecting the rights and interests of clients of investment advisors

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AK&M 09 December 2022 11:33

The Bank of Russia has approved a basic standard for protecting the rights and interests of clients of investment advisors. The investment adviser is obliged to provide the potential client with important information about the terms of consulting and warn about the risks of losses before the conclusion of the contract, the regulator reports.

A person should understand in advance in what format the service will be provided, whether it is free or you have to pay for it, whether the adviser will monitor the investment portfolio to rebalance it and with what frequency. 

The standard also establishes the basic rules of interaction between the parties, including the procedure for considering appeals.

The provisions of the standard will come into force on June 9, 2023.

Thus, in all sectors of the financial market where self-regulatory organizations have been established, market participants will work in accordance with the requirements of basic standards for the protection of the rights and interests of recipients of financial services. They already work for insurers, microfinance organizations, brokers and managers, forex dealers and others. These standards help to make the financial market more transparent and safe for the consumer.