Unifying key terms of brokerage agreements: results of discussion by Expert Board under Bank of Russia
Members of the Expert Board for Retail Investors Protection have discussed possible unification of the main parameters of brokerage agreements in a single clear format that would be mandatory for all market participants. Investors will thus be able to see at once all important terms and compare offers from various brokers.
A similar approach was earlier stipulated by law for loan and bank deposit agreements — they contain a standard table making it easier for consumers to understand the parameters of a loan or a deposit. The Bank of Russia supports the idea of standardisation, but considers it essential to find a balance so that brokers preserve flexibility in determining agreement terms and investors do not incur extra costs. This discussion will continue.
Besides, the Board has elected a new chairperson — Sergey Shvetsov, Chairman of the Moscow Exchange Supervisory Board. He presented his proposals regarding the main areas of the Expert Board’s work and spoke about the efforts taken by the Investor Protection Club of the Moscow Exchange to unblock retail investors’ assets.