Post sponsored by NewzEngine.com

Source: Central Bank of the Russian Federation in English

25 December 2020
News

Beginning 1 January 2021, the securities law requires that brokers — prior to execution of a customer instruction if the customer is a non-qualified investor — disclose additional details of the transaction. The operating procedure for this is outlined in the Basic Standard for Brokerage Transactions that the Bank of Russia has updated and approved for use.

The measure will see market players revealing purchase and sale prices of securities or derivatives, brokerage fees and other expenses including clearing and stock exchange fees. If this information is contained in multiple sources (e.g. a price of the security on several exchanges), the broker is supposed to pick one source, acting most reasonably and in good faith.
The broker does not need to present price details anew in cases when the broker is also an investment adviser and these details have been provided to the client as part of personal investment advice. The standard also covers other cases when the broker is not obliged to reveal such data prior to each transaction for reasons beyond the broker’s control.
Under the law, the customer is entitled to go to court and seek recovery of losses resulting from a broker’s failure to carry out disclosure obligations.
Brokers may currently elect not to disclose to their clients bid and ask prices ahead of each transaction. However, many brokers handling exchange-traded securities are doing so on a voluntary basis, normally using trading applications or platforms. Clients are made aware about commissions, fees and other costs when signing a contract.
Preview photo: Dragon Images / Shutterstock / Fotodom

MIL OSI

MIL OSI Eurozone and Baltics