Bank of Russia updates basic standard for investment advisers
The updated version of the basic standard provides a new definition of an individual investment recommendation. This definition is based on current market practices.
Nowadays, in some cases, investors may receive recommendations that investment advisers are not liable for, as they use a disclaimer reading ‘is not an investment recommendation’. From now on, information shall constitute an individual investment recommendation if it indicates that a financial instrument meets client objectives, risk appetite and expected yields, or it is expressly specified in the information that it is an individual investment recommendation. The regulator recommends that advisers mark the information they provide to investors as analytics, promotional or marketing information so that investors understand whether they are receiving recommendations or not.
The standard also sets requirements for the disclaimer. It shall be printed in a readable format.
The updated standard will come into force on 18 May 2024.