February 21, 2019, 10:18 / Finance

The Central Bank wants to allow access to the Forex market only to qualified investors

The Central Bank considers it necessary to limit access to the Forex market for unqualified investors; this approach will be provided for in the bill on categories of individual investors, Deputy Chairman of the Central Bank Vladimir Chistyukhin said in an interview with TASS.

“The mechanisms laid down in the law are clearly not enough to protect citizens!” – says Chistyukhin. Therefore, the bill on categories of investors, which is currently being worked on, will include a clause stating that the Forex market should be available only to qualified investors, he explained.

In addition, the Central Bank plans to include forex dealers “among those entities subject to all business reputation requirements,” including a cross-sector ban if a license has been revoked.

Chistyukhin compared Forex services to financial pyramids. “ Personally, forex services, despite the fact that they are regulated by law, are to some extent reminiscent of financial pyramids, which citizens who want to quickly earn money without weighing the risks fall for,” said the deputy chairman of the Central Bank. Answering the question about why the Forex market is needed, he said that it is a kind of legal game.

The State Duma should soon begin considering a bill on categories of individual investors; it was introduced in December last year. The document proposes to oblige brokers to divide individual clients into the following categories: “specially protected unqualified investor”, “simple unqualified investor”, “simple qualified” or “professional investor”.