Five brokers will close the markets of unfriendly countries for unqualified investors

From October 1, the five largest brokers will completely prohibit unqualified investors from buying securities of issuers from unfriendly countries. The first to announce the introduction of a complete ban was BCS Mir Investments. Later, the decision was supported by GPB Investments, Tinkoff Investments, Freedom Finance and ITI Capital. The Central Bank recommended a phased limitation of the threshold for such transactions, but brokers refused this due to technical difficulties.

“Despite the fact that the Central Bank recommended the phased introduction of these restrictions, BCS decided to exclude the possibility of buying securities from October 1 in order to protect customers from possible risks,” the BCS said in a statement, RIA Novosti reports. The broker notes that investors who already have securities from hostile countries can keep them in their portfolio or close these positions.

As reported RBC Tinkoff Investments, a broker, will completely limit the purchase of foreign securities of unfriendly countries by unqualified investors, since it is “technically impossible” to implement a phased ban on such transactions within the timeframe set by the Central Bank.

6 September Bank of Russia notified brokers that from October 1 they should not carry out transactions for the acquisition by unqualified investors of securities of issuers from unfriendly countries. It was reported that from November 1, the threshold for such transactions will be 10% of the client’s portfolio, and from December 1 – 5%. The total ban will come into effect on January 1, 2023. Explaining the decision, the regulator said that “foreign financial institutions that account for such securities may, without warning, block the ability to dispose of acquired assets.”

More about the situation – in the material “Kommersant” “The Central Bank played on abstinence”.

Lusine Balasyan