The Central Bank recommended that brokers warn clients about the procedure for currency conversion if such operations are necessary due to sanctions, RBC reports.
Brokerage organizations must prescribe the procedure for conversion transactions in contracts with their clients. It is also recommended to provide information on the mechanism for determining the exchange rate. The Bank of Russia urges market participants to fulfill their obligations to clients in good faith.
The regulator’s letter refers to the threat that foreign counterparties will refuse to settle accounts with Russian financial institutions. As investment lawyer Elena Ryazanova explains, the Central Bank’s recommendation concerns cases of forced conversion.
In October, the head of the Central Bank, Elvira Nabiullina, urged not to carry out a forced conversion, since clients must be able to choose in which currency to maintain their finances.
Author:
Natalia Gormaleva
Source: RB
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