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Bank of Russia develops requirements for basic standards for SRO investment advisers

28.03.2019 18:24 / TASS

The Bank of Russia has outlined a list of mandatory basic standards and requirements pertaining to their content, which should now be developed by financial market self-regulatory organisations (SROs) that work with investment advisers. The draft ordinance is posted on the Bank of Russia website for expert discussion.

The document stipulates that SROs are obliged to develop two basic standards. The first concerns protecting the rights and interests of those who use the services of investment advisers. It should outline the minimum amount of information and the procedure for its provision by investment advisers, the rules governing the interaction between investment advisers and financial consumers, the requirements for employees of investment advisers that have direct interaction with clients, the process of executing the right of a client that has received a consultation to a pre-trial (extrajudicial) dispute resolution procedure, and how SROs will monitor the implementation of the basic standard by their members.

The second basic standard should establish the following list of operations investment advisers undertake, which are to be standardised: the provision of individual investment recommendations, the estimation of the client’s investment profile, and the appraisal of the suitability of the client’s investment portfolio with regards to its investment profile (monitoring the client’s portfolio).

All financial institutions that provide investment advice, whether or not they are members of a self-regulatory organisation, are obliged to comply with the basic standards prepared by SROs.

All suggestions and comments regarding the document will be accepted until 11 April 2019.

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