Deputies plan to expand opportunities for unqualified investors

A bill has been submitted to the State Duma clarifying the regulation of the status of qualified investors and the list of tools available to unqualified investors after testing. In particular, the broker’s use of the client’s assets will only be possible if the test result is positive. At the same time, the corridor of the range of accessible operations with complex instruments is expanding from 100 thousand to 300 thousand rubles. The changes could affect up to 5 million unqualified investors, experts say, and carry not only new opportunities, but also certain risks.

A group of senators and deputies led by Nikolai Zhuravlev and Anatoly Aksakov introduced a bill to the State Duma that would change the regulation of investor access to market instruments. From the explanatory note, in particular, it follows that it is proposed to establish “the obligation of brokers to enter into a brokerage service agreement with an unqualified investor, providing for the broker’s right to use the client’s funds and (or) securities in his own interests or to make changes to the agreement providing for this right, only if there is a positive test result.” This is about testing investors. Nowadays, the client’s consent is sufficient for an agreement with a broker.

“The measure will increase the awareness of an unqualified investor about the consequences and risks of using his assets to ensure execution and (or) for the broker to fulfill his own obligations and (or) obligations to be fulfilled at the expense of other clients of the broker,” the document says.

Forward Legal lawyer Oles Gruzdev clarified that the bill adjusts the list of tools that are available to unqualified investors after testing. Partner at the Smolenka 33 Bar Association, Elena Mende, explains that testing for unqualified investors will be required in case of transactions with bonds secured by pledge of monetary claims.

The document also clarifies the regulation of the legal status of qualified investors. In particular, the conditions under which a person is considered qualified are changing, which opens up access to a wider range of market instruments. The range of criteria by which an investor is classified as qualified includes, for example, income level.

Particular attention is paid to securities and contracts with features of structured bonds and notes, notes independent financial analyst Andrey Barkhota. “As a “carrot” for investors, the corridor of the range of accessible operations with complex instruments is expanding from 100 thousand to 300 thousand rubles,” explains the expert. “Thereby, the motivation to undergo testing is realized. The content and emphasis in the proposed testing are assigned to the area of ​​responsibility of the Bank of Russia.”

In other words, Mr. Barhota clarifies, within the framework of the concept of the bill, an unqualified investor, based on test results, will have access to operations with instruments that were previously only available to qualified investors. The bill could affect up to 5 million investors who “intended to expand the range of investment operations without obtaining the status of qualified investors,” says Mr. Barhota. Meanwhile, the expert adds, the status of the latter “is receiving new, more stringent regulation.”

The main risk of the bill is “the likely replacement of investment status,” says Mr. Barhota. The growth rate of accreditation of new qualified investors, according to his forecasts, may slow down: “Outstanding applications will be sublimated within the framework of the concept of “unqualified investor who has passed the exam.” As often happens, what is forbidden becomes especially desirable. That is, interest in structural tools may grow. Although there are no objective market prerequisites for this.”

According to Mr. Gruzdev, taking into account the time of introduction and the effective date established in the draft, 180 days after publication, even if adopted without delay, the changes will become relevant no earlier than September 2024.

Ksenia Kulikova