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Moscow Exchange Registers Individual Investment Accounts

05.02.2015 16:57 / Moscow exchange

In January, Moscow Exchange registered 7629 Individual Investment Accounts (IIAs), opened by private individuals in brokerages and asset management companies. IIAs allow tax rebates for private investors.

The majority of IIAs were opened by clients of Otkrytie, BKS, Sberbank, Finam and Aton.

“The IIA investment mechanism boosts the potential yield of securities, making bonds and shares even more lucrative than bank deposits. We expect most of the active private investors trading on MOEX to open IIAs very soon. Besides, tax benefits will draw more individuals to the stock market who have never invested in securities”, says Andrey Shemetov, Deputy CEO at MOEX.

NAUFOR estimates that the total net worth of IIAs may pass the RUB 1 trillion mark in five years.

According to the law, starting from 1 January 2015, individuals can open an individual investment account (IIA) with a broker (broker account) or asset management company (trust account). The total IIA deposit can amount to RUB 400k per annum. The cash may be invested in stock market instruments such as shares, state and corporate bonds, including Eurobonds, ETFs and share investment funds, etc. Apart from investment profit, investors are eligible for two types of income tax rebate: 13% off the annual deposit (a return of RUB 52k p.a.) or a tax exemption for all income generated by the IIA (at the time of its closing).

Taxation of financial transactionsTrading infrastructureProject Group №1