Banks should not offer combined products and regular deposits in same section on websites and in applications: regulator's recommendations
The Bank of Russia recommends that credit institutions should not use the same sections of their websites and mobile applications for posting information on regular deposits and combined products, which provide that the client’s money is partially deposited and partially used on an investment instrument, for example, investment life insurance, brokerage account or trust management.
As evidenced by the regulator’s analysis, banks tend to offer these products in the same section. This poses a risk that inexperienced investors may view combined products as ordinary bank deposits ‘with a higher interest rate’ without seeing their fundamental differences, i.e. that the money used on the investment part of the combined product is not insured by the Deposit Insurance Agency, and that its profitability is not guaranteed.
Earlier, the Bank of Russia recommended that credit institutions refrain from offering combined products to non-qualified investors until the introduction of mandatory testing.