Bank of Russia approves basic standard for investment advisory customers
Investment advisers are obliged to provide their potential customers with important information about the terms of consulting services and warn them against losses before signing agreements, the document says.
People should know in advance in what format the service will be provided, whether it is free or they have to pay for it, whether their advisers will monitor investment portfolios to rebalance them and how often.
The standard also establishes the basic rules for parties’ interactions, including the procedure for handling complaints.
This standard will become effective on 9 June 2023.
Thus, in all sectors of the financial market where self-regulatory organisations are established, market participants will work in accordance with the requirements of basic standards for the protection of financial consumer rights and interests. They are already in place for insurers, microfinance organisations, brokers and asset managers, FX dealers and others. These standards will help make the financial market more transparent and safer for consumers.