Bank of Russia to set up Expert Council to protect retail investors
The main tasks of the Council will be to prepare recommendations for market participants to protect retail investors and make proposals for the development of regulation in retail investing.
‘The number of retail investors in the financial market is steadily growing, and the number of investment products offered to them is increasing, while they are constantly becoming more complex, and individuals do not always understand their specifics and possible risks,’ says Mikhail Mamuta, head of the Service for Consumer Protection and Financial Inclusion of the Bank of Russia. ‘Therefore, we expect that the new Expert Council will focus its efforts in this area and help us identify problems faced by novice investors in time, as well as recommend us how to solve them and protect consumers.’
The Council will consist of representatives of the Consumer Protection Council already operating at the Bank of Russia, as well as representatives of associations of market participants, consumer protection, Russian executive authorities, and experts. The Bank of Russia is currently accepting applications from potential board members. Its chairman will be elected at the first meeting.
The Expert Council on consumer protection will continue working on issues related to the services of creditors and insurance organisations.