The Central Bank adjusted the rules for the purchase of securities of friendly issuers by unqualified investors. Starting April 1, brokers will be required to inform clients of the potential risks of locking up securities if they are posted to a hostile escrow.
“The broker has the right to execute the client’s order only if it has notified the client about the possible further blocking of such securities. The broker can send a message to the client by means of automatic notifications before each transaction, or inform him once about the purchase rules and obtain consent to accept the risk, ”explained the Central Bank.
Starting March 21, the Bank of Russia will no longer allow new foreign securities to be traded on the SPB Exchange if they are booked by a hostile depository. The measure applies only to those securities that can be acquired by unqualified investors.
The ban on investors who do not have a qualifying status to buy shares from hostile countries has been in effect since October 1. In September, the Central Bank announced that from that date the brokers would stop executing purchase orders for said securities. The restriction applies only to those investors in whose portfolio the participation of said securities is greater than 15%.
The Russian Federation considers Ukraine, USA, Canada, Australia, Great Britain, South Korea, Norway, New Zealand, Japan, Switzerland, Iceland, Montenegro, Singapore, Taiwan, Monaco, Albania, Andorra, Bahamas, San Marino They are unfriendly, North Macedonia, Micronesia and Liechtenstein, as well as all the EU states.
Author:
Natalia Gormaleva
Source: RB
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