The Central Bank selected the license from five Forex dealers from nine

The Bank of Russia annulled the licenses of five Forex dealers: Alpari Forex LLC, Taletreid Group LLC, Forex Club LLC, Fix Trade LLC and Trustform LLC, TASS reports. These are the largest players in the market. Now in the country there are only four licensed dealers.

The basis for the recall of licenses was "repeated violations of the requirements of securities legislation during one year," the Russian Central Bank said. Then the bank explained that these companies hid the money of Russians in offshore.

Companies should terminate the securities market and return property to customers until January 27, 2019.

The official representative of Alpari Forex Andrei Loboda said that the company has not yet received an official notification of the Central Bank and continues to work. “We hope for the constructive resolution of the current situation along with the SRO SRO (self -regulatory organization“ Forex -dealers' Association), ”he said.

The press service of Telepreid Group told TASS that the decision of the Central Bank was a "complete surprise" for the company. “This is very strange and completely unexpected. Yesterday, representatives of the Bank of Russia jointly took part in the work of the Committee on Financial Markets in the State Duma. There were all forex dealers and discussed the prospects of this market,” the company said.

The Forex Club did not receive official notifications, Kommersant writes. “Most likely, this is some kind of mistake,” TASS said in a call center. Forex dealer assured that he continues to work.

Forex market players withdrew money to offshore

The main business of the five Forex dealers, whose licenses on Thursday were canceled the Central Bank of the Russian Federation, was associated with the involvement of Russian citizens to their foreign offshores, the director of the securities market and the commodity market of the Bank of Russia Larisa Selyutin told Interfax .

According to the representative of the Central Bank, all five finished companies are subsidiaries of large foreign Forex dealers.

"During the period of work in the Russian market (since 2016, they have been licenses of the Central Bank-approx. Interfax) Forex dealers essentially used the Bank of Russia license as advertising, led to the aggressive involvement of Russian citizens in the Forex market, while entering this advertising, citizens, as a rule, came out with an agreement concluded not with the Russian licensed Forex-Dieler, And with one of the foreign companies working under a similar brand, ”said Selyutina.

According to her, the size of the client assets of all five licensed companies is 35 million rubles, or 3.7% of the assets of all licensed forex dealers.

The client’s lifetime is 40-80 days, that is, people came, quickly lost money in the Forex market, said Selyutina.

According to the observations of the Central Bank, despite the huge costs of advertising, the activities of these companies were unprofitable, but "they continued to feel great, because they were a mechanism for involving citizens in foreign markets."

Client funds are on nominal accounts in credit organizations, Forex dealer does not have the right to dispose of them. Now this money will have to be returned to customers until January 27, 2019.

"Most of the expenses of five companies are related to the costs of advertising. The actually declared activities for which the license was issued, all five Forex dealers were carried out in relation to 2 thousand customers, of which the" living "were many times less - 470 by five companies, says Valery Lyakh, director of the Department of the Central Bank of the Russian Federation.

This, according to him, suggests that most of the clients who were involved in these companies went to foreign Forex dealers. “In fact, the license was used as a cover or as an advertisement,” he explained.

Lyakh noted that the Central Bank cannot appreciate the scale of attracting Russian customers to foreign markets. Most of the heading companies of Forex dealers, which have lost the Central Bank licenses, are registered in St. Pinenta and Grenadadi, where there are no requirements for licensing such activities.

Selyutina said that when the Forex dealers law was adopted, there was an agreement that licensed forex dealers would transfer their Russian clients into the jurisdiction of the Russian Federation, however, not a single client of five companies was transferred.

These companies will lose the right to advertise their services in Russia, since their activities are unlimited. The Federal Antimonopoly Service, law enforcement agencies, as well as the Department for Combating unscrupulous practices of the Central Bank will now fight illegal advertising and attracting citizens' funds.

Forex is an international off -time market in which currencies are exchanged. Trade is carried out by currency pairs in which one currency acts as a product, and the other as a means of payment. The Central Bank only in May 2017 approved the basic standards for the work of Forex dealers and after that began to issue licenses.

Alpari Forex, Telepreid Group, Forex Club, Fix Trade and Trustforms are the largest forex dealers.

Now, judging by the information on the Central Bank’s website, only four players can work in Russia as Forex dealers: “finams of Forex”, “VTB Forex”, “PSB-FOREX” and “Alfa-FOREX”. Alfa-Forma received a license less than a week ago.

According to the law of the company operating in the Forex market, the licensing procedure in the Central Bank must be held, the Russian BBC service writes. In accordance with the requirements of the Central Bank, the activities of Forex Dieler are exceptional - it has no right to combine it with other activities, including in the securities market. Banks that previously provided such services had to create subsidiaries.

In addition, forex dealers are also required to enter into a self-regulatory organization.

Forex companies in Russian jurisdictions will not be able to compete with foreign ones due to serious restrictions.