The Ministry of Finance supported the ban on the purchase of securities from unfriendly countries for inexperienced investors

Deputy Finance Minister Alexei Moiseev said that by decision of the Central Bank, unqualified investors will be limited in their right to invest in assets of unfriendly countries. A partial ban will come into effect on October 1, and a full ban on January 1, 2023.

Mr. Moiseev compared the decision of the Central Bank with a foreign currency mortgage, from which many people suffered. “How many people have now suffered and found themselves frozen in Apple shares. If you like, you can continue to cut off your finger on the leg, then on the arm. But I believe that this is an absolutely correct position on the part of the Central Bank,” he said on the sidelines of the XIX International Banking Forum “Banks of Russia – XXI Century” (quoted from TASS). He admitted that he was surprised by the position of professional investors dissatisfied with such a measure.

Back in July, the Central Bank (CB) as part of the development of the concept of improving the protection of retail investors suggested protect inexperienced investors from the risk of asset freezes. September 6 Regulator informed brokers that from October 1, they will have to restrict unqualified investors in purchasing securities of issuers from unfriendly countries, provided that the total share of such securities in the portfolio exceeds 15%. Further, the percentage of the allowable share will only decrease until a complete ban comes into force – from January 1, 2023. It will not affect short trades. Formerly Ministry of Finance spoke against such a decision.

According to the Central Bank, more than 5 million people suffered from the blocking of assets of Russian residents by foreign financial institutions.

Natalia Semenova