Regulatory organization CBR
CBR (Central Bank of the Russian Federation), also known as the Bank of Russia is a financial institution engaged in the development and implementation of the state monetary policy, and endowed with the rights issue of money and regulation of banking activities. The Bank of Russia supervises banks and credit institutions, is responsible for licensing banking institutions and also has the right to revoke licenses if banks do not perform their duties in accordance with the rules and regulations of the Central Bank.
From 1 January 2016, the Central Bank of the Russian Federation assigned the new responsibility of licensing and regulating activities of Forex brokers, in accordance with the law on Forex № 460-FZ dated 29.12.2014 Earlier the Forex market in Russia, nothing and no one not regulated and not controlled, and brokers to create their own and joined the professional Association of participants of the financial markets – kroufr, NAUFOR, NAFD (CRFIN) and The Financial Commission. However, these organizations did not respond to their assigned responsibilities for regulation of the Forex market, so Russian Government decided to shift responsibility for oversight of the Russian financial markets at the Bank of Russia.
As a result, from the beginning of 2016 on the territory of Russia was prohibited activities brokers are not licensed by the Central Bank of the Russian Federation. In this regard, were closed offices and representative offices of foreign brokerage firms. To develop its activities in Russia, the brokers need to perform the following steps:
- to obtain a license of the Central Bank of the Russian Federation;
- to engage in self-regulatory organization (SRO), uniting professional participants of the Forex market and accredited by the Bank of Russia (at the moment there are two main candidates in SRO – NFD and AFD);
- the amount of own funds of the broker must be at least 100 million rubles, and in excess of the customers ' funds more than 150 million rubles, the amount of own funds must beü more than 5% of the excess amount;
- to make a contribution to the compensation Fund SRO in the amount of 2 million rubles to make payments to customers in case of bankruptcy of the company;
- to sign with their clients (including existing clients) of the framework agreement at the offices of Forex dealers, as well as to hold their identification;
- conduct internal accounting activities, reflecting all the changes to transactions and providing this information to the controller.
Until these conditions are met, the broker can not carry out their activities and advertise their services. Despite the fact that there are already first brokers licensed by the CBR, but so far they are unable to carry out its activities, as yet not developed and adopted relevant standards. Also under discussion is the question of division of traders into categories, according to which the Bank of Russia plans to deny access to the Forex market to citizens of the Russian Federation that do not have trading experience and appropriate capital. Leverage will be limited to 1:50, according to the regulator's decision it can be increased up to 1:100. Trade will be done only currency pairs as CFDs and precious metals are outside the scope of the law. PAMM-investment in the jurisdiction of the Russian Federation also excluded. When you withdraw funds from the customers of Forex dealers will be retained by the personal income tax of 13%.
Thus, the regulation of the Forex market by the Bank of Russia is still too raw and uncertain to make any conclusions. One can already say for sure that the law about Forex more towards support of professional investors. For novice traders trading conditions are very tough little leverage, minimum range of trading tools, the lack of PAMM-accounts, inflated spreads, the possibility of a ban of access to the Forex market. However, the law does not prohibit trade with foreign brokers. Despite the fact that they have closed their offices in Russia, they continue to work with Rossieskimi traders that offer quality services, provide technical support and withdrawal of funds.